Bailout student loans have been discussed as early as in 2011. In the past few days, the ideas resurfaced again as written by the US media which confirmed that the US taxpayers may have to bailout the loans through different programs introduced by the regulator in dealing with massive current student loans.  Programs such as Student Debts Forgiveness, Pay as You Earn (PAYE) or Income-Based Repayment programs ease some of the financial pressures that college graduates and their family have to deal with.

AAEA has studied the issues and has made its research findings accessible to the American public many months ago.  Sadly, the current repayment (bailout) programs while help lessening family’s financial pressures, they do not however, solve the root of the problems.  The Association has repeatedly mentioned that the colleges’ inefficiency and the old operational mindsets used in managing US colleges are no longer relevant in the new economy.  Given the current economic conditions and dynamic competitive environment changes that are occurring in the global world, the old mindsets need to be improved, revitalized, completely abandoned or changed.  Simply shifting all the inefficiencies to the students while it worked well in the past, will no longer relevant in the new world. 

Please let us know what do you guys think?