The interest rate, set by politicians, is too low, causing too much borrowing.
Grants and loans from a third-party (the federal government) make students and parents insensitive to education costs. On top of the flood of cash, schools have taken advantage of this to incur unnecessary costs and raise tuitions through the roof!
The number of college graduates exceeds the availability of high-level jobs. Over half of recent college graduates are unemployed or underemployed, but they’re still struggling to repay their loans.
Student loans induce too many unqualified people to apply for college. The portion of Pell Grant recipients who fail to obtain degrees within six years is 60 percent – yikes!
Colleges should own the loans themselves. Defaults would cause the colleges to lose, not the taxpayers.
Instead, the Obama Administration has taken over the student-loan program completely, removing competition among creditors for the quality of service and making every problem worse.
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