OK, i have run my own workings on the proposed 'higher education liberalization' by a bond dealer friend (he is located in US and expert in debt securities) to critic the policy and the problems with it.
Here are his thoughts in short, quote:
- Higher education institutions would become subject to "accountability reporting" - this addresses a symptom to avoid the real problem.
- It would allow people to take on loans that will impair their economic mobility by assuming education is an investment.
- The real predatory component is that the fed gov lends students huge sums of money for hedonic consumption.
- *Hard* limits must be put on loans based on formula derived from median income levels.
- This is rational, fair & good underwriting, which would lead to lower default rates therefore lower rates & larger forward values.
