Vox has followed up his link from Saturday with this column today. It is concise, and to the point.
To call the student loan racket a “scam” is probably a charitable assessment. Payday lenders–attacked by the government for “predatory” lending–are Eagle Scouts compared to the student loan racket. Hell, La Cosa Nostra looks like Mother Teresa next to those bastards.
Making matters worse, the student loan racket has government protection.
In other words, it’s only a scam if the government isn’t getting a cut. Otherwise, it’s “federally guaranteed” and marketed as a “benefit”. The logical question is why the taxpayer continues to support this.
The conservative often rails about the left-wing ideologues who dominate academia, and yet very few conservatives have called for an end of the academic-financial complex that benefits universities and government at the expense of taxpayers while eroding the value of a college degree.
(Rather than fight the ideological battle, the more prescient approach would be to bring freer markets into the fray: kill the student loan dragon, end the federal gravy train for universities, and force the debts into the open. Many universities will be forced into financial exigency–resulting in massive layoffs, even of “tenured” professors, and elimination of bogus degree programs. Many universities will even be forced to close their doors.)
At this point, the student loan bubble is at nearly a trillion dollars. This is at the same level as the housing bubble–the bust of which handed us our current ongoing economic crash.
Anyone wanna bet this bubble is going to end well?