Quote:
Originally Posted by tophcfa
The disconnect between the cost of a good education and what one can earn is because education is not what it used to be. When we all went to college engineering, math, science, physics, business, law, and pre-med were degrees of choice. Now kids go to school for degrees in social justice, climate sustainability, and the like. It's no wonder they can't pay off their loans. And you are correct that car loans dwarf the defaults on college loans, that is because banks can reposess your car if you don't pay the loan, but they can't take back the time you spent in college if you default on your student debt. Collateral that can be taken back is definitely worth something to a lender.
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Liberal arts degrees were hugely popular in the 1960's, 1970's, and 1980's. Political science was also very popular.
College tuition in the 1960's was usually less than $2000 per year. 4 years at Harvard was less than $35,000 total, including room and board for the first two years. Now it's around $130,000 PER YEAR. The cost of education has gone up MUCH higher than the salaries people expect to get as a result of that education. And much higher than the overall rate of inflation.
That is why student loans are being defaulted. Older people are remembering how easy it was for them to get their own loans and pay them back, and not noticing how expensive it is for kids to get the same education now. "Back in my day" is obsolete, and irrelevant.