The American public may not notice the big shift seems to occur how to handle the $1.5 trillion student loan debt.  It started with a person who led the DOE threw her ideas of passing the government role to private companies.  This recent movement may have been based on the idea of the free-market forces are able to allocate resources more efficiently–but forgot the conditions needed for that to happen.  The condition is certainly missing not only in the practical sense, but also under the Neoclassical economic theory.  This missing constraint has been discussed by Adam Smith.  He called it moral sentiment.  Adam Smith is correct–a market cannot operate efficiently, if it is not Pareto efficient.

In addition to DOE, Congress has its own ideas as well as the state how to deal with the student loan debts.  Recent article found a very interesting, yet sketchy ideas how DOE has handled the loan servicing companies.  Reading all these articles show only one thing which is chaos.  There is no single public policy meant to management student debt crises.  As the Association has pointed out in many articles no one has the real interest to find ways to minimize the chaos—for it does not have negative direct impacts, but to benefit them.  Worse yet, every so often that more systematic errors were infused into the system to make it less possible to be managed.  Even a superman will refuse, if he were assigned to straight things out.  Pretty sad!