School is supposed to help teach our children.
Unfortunately, the education system here starts out dumb from the get-go!
As the WSJ today reports, $400 billion out of a $1.4 trillion educational loan portfolio is likely uncollectible.
That’s almost 30% bad debt!
But what is unforgivable is that they system is geared towards crappy lending practices.
As per a former head of the Congressional Budget Office (CBO):
“We make no attempt to evaluate the quality of the borrower, the ability to repay, the effectiveness of the loans…[so] the taxpayer ends up picking up the tab.”
Is that fair to all the responsible students and families that pay for their education and repay their student loans?
This systems is so broken, and on top of it yet we want to forgive more student debt all together and teach our children to be deadbeats!
It seems like this education system can’t teach anything of value except how to play an already broken system! 😉
(Credit Photo: Andy Blumenthal)