The infamous housing bubble that began back in 2006 and the student loan crises of today can be attributed to the same overgrown monster that is the cause of most of our economic woes, the federal government.
A group of Liberal politicians didn’t think there were enough home owners, so they got together to pass laws that lowered the standards of obtaining loans to purchase homes. This resulted in too many unqualified borrowers taking on debt they could not afford and that lead to a huge economic crash.
If you haven’t figured it out by now, the “geniuses” we send to Washington to represent us aren’t the brightest of people, you would think they would have learned from their mistakes.... Nope, because here we are gain, this time they decided that we didn’t have enough college students.
This lead to lowering the standards of obtaining a student loans which has in turn lead to too many unqualified borrowers being straddled with debt which they cannot afford... and just like we saw the cost of housing increase way beyond their value due to artificial demand, we are now seeing the cost of tuitions sky rocket as these beacons of “higher education“ take advantage of students who are obtaining student loans they have no business obtaining.
The moral of this story is a simple one, stop creating artificial demand. Let the laws of economics and capitalism play out in these situations. It would lead to healthier economy... every time.