Download PDF Outstanding U.S. student loan debt is now estimated at over $1 trillion. The problems of student loans are generating sharp debate, including claims that they represent a new credit bubble. Colleges (and all purveyors of post-secondary education) arguably receive the greatest benefits from student loans, since they pump up colleges’ revenues with no credit risk and allow colleges to keep increasing their prices and expenses. Meanwhile, many students graduate — or even worse: drop out — with mountains of debt and unattractive or no job prospects to boot. Even more dismal is the fact that defaults on student loans are high.
American colleges in effect practice the “originate and sell” model of lending, while the price of their product keeps going up. This practice is reminiscent of the mortgage bubble that has brokered loans and escalating housing prices. One possible improvement would be for colleges to retain “skin in the game” for student loan credit risk, which is the same treatment Congress has prescribed for mortgage lenders. This event addressed the problems and improvements needed for student loans, beginning with a keynote presentation by former secretary of education Bill Bennett and including this presentation from AEI Resident Fellow Ed Pinto.
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The Shadow Financial Regulatory Committee (SFRC) is a group of publicly recognized independent experts on the financial services industry — including experts in banking, insurance, and securities — who meet regularly to study and critique regulatory policies affecting this sector of the economy.
This event has been cancelled due to inclement weather.
At a Capitol Hill luncheon event, Westchester County Executive, Robert Astorino, will present his first-hand experience with HUD's demands to sue localities over common zoning regulations in an effort to dismantle local zoning as it is known today.
AEI's Marilyn Ware Center for Security Studies will host General Mark Welsh III, Chief of Staff of the US Air Force for the concluding session of its series with the Joint Chiefs of Staff.
Join AEI for a discussion of two new policy proposals that address the use of road pricing and public-private partnerships, as well as state efforts to enhance infrastructure and economic competitiveness.
Join AEI for a discussion of professional sports subsidies and — fittingly — for a free lunch.
AEI’s Jeffrey Eisenach will argue in favor of a generic antitrust enforcement model with primary enforcement by the FTC and Jonathan Baker of American University will maintain that an industry-specific regulator like the FCC is needed to work with antitrust enforcers to shape competition in the broadband industry. The debate will be moderated by US Court of Appeals Judge Stephen Williams.