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I think the biggest problem with higher education today is the fact that colleges aren't the one issuing the student loans. If a student enters the workforce and can't find a job to pay back their loan, the colleges aren't the ones on the hook; the students are, and eventually, the taxpayers. I understand that government-backed loans are a way to try to make higher education available to more people but all this easy money has resulted in a huge cash grab by for profit institutions who frankly could care less whether or not their graduates actually pay the loans back. Couple that with the almost religious belief that a college education is the only way to achieve the American dream and you have a recipe for the exact disaster we're flying head first into today.


The traditional name for this: The agency problem. http://www.investopedia.com/terms/a/agencyproblem.asp#axzz23...




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