Although this may sound odd coming from a person committed to
solving the student debt problem, I do not think student debt is totally
bad. I believe there are aspects of
student debt that are really good. When I imagine fixing the student
debt problem; I don’t imagine school being free. I imagine a world where
student debt gets properly invested. Where loans go to institutions that lead
to good careers; and the schools that suck go bankrupt.
In order to solve the student debt
problem we first have to understand the problem. The problem is not that
student debt exists, the problem is that the debt is misallocated. Misallocation is an economic term that means a
bunch of loans are going to total crap.
