Allow bankruptcy on student loans and lenders will force colleges to cut tuition and fix their curricula. Markets work when they work, the speaker argues. Right now colleges charge whatever they want because loans are guaranteed. Make them compete for borrowers who can actually pay back what they owe.
We want capitalism in the markets to balance themselves out, and that creates ups and downs. Companies go out of business, new companies come in, there's competition, but we need competition. And we need to prioritize the human beings in that where we shouldn't sell things to people that make them sick, that aren't healthy. We should have a fair game. We shouldn't put people into student loans that come out the other end and can't can't pay them back or can't live a decent life for that education. We should let the markets control the system. And if tomorrow you could claim bankruptcy on student loans, they wouldn't be giving loans to everybody. The colleges would be charging way less, and they would rethink what they're offering so it matches the workforce. It's that simple. It would happen in minutes.
