Frank Fleming offers a modest proposal to solve the student loan and debt problem: Set a minimum age of 30 for college loans.I don't know why this is "a modest proposal", as I could take it entirely seriously--unlike the eating of Irish babies.
In a sane world, if a teenager walked into a bank and said, “I would like a $50,000 loan to major in modern dance,” the bank manager would call security, who would then pummel the stupid kid, and everyone would end up smarter for it. But what happens instead is that Uncle Sam walks by and says, “I like his moxy. Give him the loan; I’ll guarantee it. And I’ll make sure he can’t ever get out of his stupid choice through bankruptcy.” So they give this giant amount of money to a dumb kid, and then the colleges are waiting outside, saying, “Hey! They’re giving huge loans to moron teenagers; we need to get some of that money!” So we have colleges preying on these gullible saps, increasing costs while their diplomas plummet in value in a complete mockery of our capitalistic system.We don’t let 18-year-olds buy alcohol, Fleming points out. Why let them borrow huge sums of money? If the borrowing age for student loans was set at 30, borrowers “might actually have some idea of what money is and what debt means.”
On a related note, I truly don't understand why parental income is taken into account when determining what price to charge adults for college. That's some crazy market distortion, there.