Nick Szabo  🔑

Also a hidden tax on the lower class and poor.

Loans granted so easily at an interest rate 4x prime

Guaranteed fed loans are the reason college is expensive. Remove the gov, prices plummet

Finally someone who understands what really causes tuition to rise. Oh and also causes healthcare costs to rise. Oh wait everything Govt is involved it causes costs to skyrocket and quality to plummet. Hmmm...

The ancillary question is if costs drive down quality, as maybe you imply, does that mean you’d have your kid turn down a free ride at Harvard and attend Oklahoma State instead? (BTW OSU is a wonderful university, but significantly less expensive than Harvard.)

U completely missed my point. I’m making no correlation between cost and quality. I’m saying that when govt gets involved, costs will always rise and quality will suffer. Private sector can always do it faster, cheaper and better.

Private universities are dramatically more expensive than state universities. Like $80K-$100K per 2 semesters v $18K-$25K for state universities. Arguably student is not getting $300K in added value at private universities.

I agree they prob are not. The point is, neither university could charge outlandish tuition if the student loans weren’t backed by the federal govt with no maximums.

An interesting idea. There is no funding reform w Devos at Dept of Ed however. She’s repeatedly shown she doesn’t give a flip about student debt burden.

What are your thoughts on income share agreements as a replacement for subsidized loans?

I'm for private institutions and private individuals coming together in private agreements that they find to be mutually beneficial.

I agree.

Yup, access to free money for schools leads to high tuitions which are otherwise unaffordable. Free money leads to bloated budgets for administrative positions like Chief diversity officer, or some other nonsense.