The Association just learned that the regulator finally admitted that the US student loans have created a crisis. Cited in this article, the administrator mentioned three sources that have caused the student loan debt problems.
- US higher ed institutions.
- The borrowers irresponsible acts.
- Past administrator’s policy.
AAEA has written many articles in the past on the first point–that the US higher ed institutions have to control their operational cost. Please click here to read more. The regulator’s remark has directly or indirectly confirmed the research finding.
It is pretty interesting to note that while admitting about the crises are happening, there are no suggestions or future policy will be applied to curb or solve the crises. This shows that even the regulator does not know what to do. But, as the Association has shared to the American public that the inability to solve the problem is due to (1). There is no any policy instruments; (2). It is not the branch of Executive to solve the issue; (3). There is no will or interest from all the three branches of government to solve the problem or (4). Instead of solving the issues, the policies have indirectly let other parties to create or infused more systematic errors into the system.