It's Different This Time - Free College and Government Cheese

It's Different This Time

Oregon State University from above.

Senator Bernie Sanders is talking about free college for everyone today, and the evil's of student loan debt. It is terrifying that someone as old as he is has no idea how economics work. When the Federal Government backstops a loan, meaning the taxpayers pay the loan when a student defaults, the institutions themselves have no skin in the game. Tuition goes up, based on rising Pell Grants and student loan amounts.

If you want to solve this problem it's pretty simple. Make the universities backstop at least half of these loans. College will be forced to look at which students can repay loans based on aptitude, prior grades, and demand from employers of each department. Pretty sure the Gender Studies department would cease to exist on most campuses within a year. There is no reason for any college, for profit or non-profit, to turn any student away right now, regardless of whether or not they'll ever be able to use their "education" to get a job. 

You also need to give students the ability to declare bankruptcy on student debt, with the institutions being on the hook for half of the tuition. If you're not preparing a young person to be responsible, to work, and to repay debt as an institution of higher learning you should cease to exist.