In 1972, Sallie Mae was created to federally guarantee students loans. Since then, the price of tuition and books has sky rocketed. In 2004, Sallie Mae was privatized, but the federal guarantee still exists.  Privatization only lead to a faster rate of inflation.

How long can this inflation continue when “Recent data shows that many graduates are working in fields that don’t even require their college degree“?

 

The solution is so simple. Don’t guarantee student loans. The bubble will burst and college will be affordable again. Of course, some liberal iconic institution may crash and burn. I can live with that.

 

 

You can leave a response, or trackback from your own site.