How America’s universities became debt factories
The results were predictable, if you knew where to look. In 2003, total student loan debt was around $250 billion. Today? It’s over $1.7 trillion.
That’s not growth; that’s an explosion.
But here’s the real kicker: this debt isn’t just a personal burden. It’s propping up a deeply flawed system.
The results are insidious:
- Millions of Americans graduate from college overloaded with debt and underprepared for the job market.
- The institutions that create these outcomes are not held to account because market forces are not at play.
- Colleges have no incentive to control costs or improve outcomes, as they get paid regardless.
- Lenders keep issuing loans without regard for the borrower’s ability to repay, knowing the debt can’t be discharged.
In essence, the non-dischargeability of student loans has created a perfect storm of misaligned incentives. It’s a system that rewards failure and punishes success.
Consider these facts:
