College and university student loans became available in the late 1950s, and by 1990 half of all students were getting them. If you look at the cost of college in the 1960s and use a consumer price index of 3.8% from then until today, you find that the cost should be only 40% (for public schools) or 30% (for private ones) of what’s actually being charged today.
How did this happen? With no oversight or regulation, colleges and universities seemingly saw a chance with the “guarantee” in the loans to lure students with promises of “gold in them thar hills.” And in turn, these college and universities could pad their bureaucracies and building programs.
Where are we now? About half of all graduates over the past decade are unemployed or underemployed, and robots and artificial intelligence are coming for some of the jobs of those who are gainfully employed. It is not a pretty picture.
Alongside student loan forgiveness, I believe there needs to be a class-action lawsuit against the college and universities that have perpetuated this scandal. Can you imagine the size of this?