On Tue, 27 Aug 2019 20:07:06 -0400, Home Guy wrote:

Bill wrote:

A better option is the universities become co-signers or garantors
of the federal loans. If the students can't pay them back, the
university is on the hook for them.

I regard that as completely equivalent.

Not so.

When it comes to student loans, the gov't has extrordinary means to
collect, and the school could cancel or revoke whatever diploma or
degree the student had received if it ever fell to the university to
make good on the loan.

And do one other thing: Students that flunk out or otherwise
do not get a degree get their tuition refunded (or the university
refunds the tutition back to the gov't if it was paid for through
a federal loan).

That's equivalent too.

How so?

Putting the university on the hook to refund the tuition means they
change their admission numbers and requirements so that they do a better
job of selecting the kids that have what it takes to complete their
studies and pass their exams. They now have a vested interest that the
students graduate. Right now they don't.

True. Getting accepted to a college was a big thing when I was a kid.
Now if it isn't one of the top 50 or even top 100 schools, acceptance
is a rubber stamp deal.
It is also pretty hard to flunk out, you just keep taking courses
until they finally pass you in most places. What used to be a 4 year
degree is now a 5 year degree. Granted some of it is just remedial for
what your government high school didn't teach you and passed you
anyway.