Is it too easy to get college loans? 2 college professors say: "Yes!"

Spun— spend money a whole lot easier than, than maybe you should. And Bill Quain, how do colleges— give us some examples of how colleges engage in creating frictionless systems to get access to student money. Gary, they have elevated this to a high art form. This is— I'll tell you something, they would make any marketing department at any major corporation so proud of how they make it so easy. You take it, like for example, the student loans. Of course, in the student loans, they have another complicit partner that has really done all they can to make everything frictionless. And that's the United States government with their student loan program, which is why there is $1.7 trillion in outstanding student loans. And outstanding, I don't mean like very good. I mean, still being owed as opposed to all the money that's already been paid. So, so here's how they do it. Let's, let's take your, your student loan program. First of all, the announcement that you are eligible for a student loan comes in your offer package or offer letter from the, from the university. And it looks like it's a grant, but it's actually a loan. But they put it in there. And so it starts there. But now when you, when you get that loan, you— all you have to do is— oh, you've already filled out the FAFSA, otherwise you wouldn't have gotten a loan offer there. And you— and of course, if you're a freshman, your federal student loan is limited to $5,500 for the first year, but there are parent loans on top of that, and then you can get private loans on top of that. So, you know, and And it's almost unlimited. So, you just sign your name. Now, you think about who would lend a 17 or 18-year-old kid, you know, $10,000, $20,000, $30,000. Now, again, that would have to be split up with the parents and that kind of stuff and some private loans. But nonetheless, you can get that. You're putting nothing down. You don't have collateral of any kind. And it's very easy. Now, here's where it gets even easier because of course, the money does not go to the students. If that money went to the students and their families, and then they had to turn around and write a check to the college, well, that would be friction more, but we don't want to do that. We want to make it frictionless. So, the money goes directly to the college. So easy. Now, you never You never have it in your hands. There's no pain. And now here's where it gets even more frictionless. You don't have to start making payments on that until 6 months after you graduate. Now you're a freshman in college, you're 17, maybe just turned 18, something like that. You have this money, you walk onto the campus, your dorm room automatically opens for you because that was been paid for. You've got a swipe for the cafeteria that's been paid for. Of course, nobody laid out money for that. That just came through the loans, or if your parents are wealthy enough to do it, kid doesn't see it. And then you don't even think about it. So, it comes to be sophomore year, let's do it again. It was so easy. It's so frictionless. And even when you graduate, you don't have to make any payments till you're 6 months out.