Here's a proposal on how to solve a $1.73 trillion problem aka the world's most inefficient government-backed market.
I'm talking about college student debt.
Today:
* Sellers (colleges) face zero consequences for failure
* Buyers (students) can't discharge debt through bankruptcy
* Taxpayers foot the bill for defaults
Two simple market reforms would fix this:
* Make student loans dischargeable in bankruptcy
* Require universities to underwrite 80% of student loans and eat losses
This would instantly:
→ Force colleges to care about graduate outcomes
→ Kill predatory programs that create no value
→ Drive down tuition costs naturally
→ Protect low-income students from exploitation
→ Create real accountability without complex regulations
When drug companies sell ineffective treatments, they face consequences.
Why do we let universities keep selling $200,000 "treatments" that don't work?
Time to bring market discipline to higher education."
"Dear Department of Government Efficiency (DOGE),
Here's a proposal on how to solve a $1.73 trillion problem aka the world's most inefficient government-backed market.
I'm talking about college student debt.
Today: * Sellers (colleges) face zero consequences for failure * Buyers (students) can't discharge debt through bankruptcy * Taxpayers foot the bill for defaults
Two simple market reforms would fix this: * Make student loans dischargeable in bankruptcy * Require universities to underwrite 80% of student loans and eat losses
This would instantly: → Force colleges to care about graduate outcomes → Kill predatory programs that create no value → Drive down tuition costs naturally → Protect low-income students from exploitation → Create real accountability without complex regulations
When drug companies sell ineffective treatments, they face consequences.
Why do we let universities keep selling $200,000 "treatments" that don't work?
Time to bring market discipline to higher education."