Degrees of deception: How America’s universities became debt factories

The U.S. student loan system is a trillion-dollar debt bubble that can’t be popped due to non-dischargeable loans. Powerful interests profit from this broken system, leading to skyrocketing tuition and subpar outcomes. Colleges lack incentives to improve, while lenders keep the money flowing, banking on guaranteed returns. Underemployment rates are high, and student loan debt follows borrowers into retirement. A suggested solution is to make loans dischargeable in bankruptcy, tie lending to degree value, and impose risk-sharing requirements. However, entrenched interests hinder meaningful change, perpetuating a system that punishes success and rewards failure, creating a cycle of debt and financial insecurity.

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