...Universities themselves have no skin in this game.
The solution is to require that colleges absorb some of the loss on delinquencies and defaults by their graduates and dropouts: say, the first 5 percent of losses. And 1 percent to 2 percent of loan amount should be deposited with the Education Department at origination, as collateral.
Only colleges can control tuition, and the cost of room and board and other student expenses. Only they can assess which students are likely to gain the benefits that college should provide. Only they can design their curriculums to prepare students to be productive members of society and to make a living sufficient to repay their loans. We should hold colleges accountable so they do all these things far better than in recent decades.
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