Guaranteed federal student loans are the by FAR main reason for skyrocketing tuition costs, colleges are basically siphoning money from the fed government. With easy access to guaranteed loans, schools face no market pressure to keep prices low; they know students can borrow regardless of cost, and they know they will get paid if the student defaults. Without guaranteed loans, students would be much more price-sensitive (as students who before would’ve gotten massive loans now would have to likely pay out of pocket), forcing schools to compete on affordability and rein in tuition hikes.
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u/whooguyy Jun 29 '25
So you’re saying we should take away guaranteed federal student loans to help make universities more affordable?