By Bob Hildreth

Giving loans to anyone not ready to repay them is cruel. America has set up millions of students to fail just when their careers should be taking off.

Any reform of the college finance system should do away with loans. They are ill suited to the task of creating the college educated citizens our nation needs.

It defies common sense to give an eighteen year older $30,000 in a loan when it is hard enough to even come up with gas money. We shackle our young with debt just when developmentally they are striving for independence.

The loans are nothing less than financial malpractice. They are made without any credit checks, any collateral, or any repayment plan other than a hope that students will be able to pay in the future even though salary data predicts they probably won’t. If a bank made such loans the feds would shut them down. By comparison sub-prime mortgage loans were paragons of professional practice.

No wonder colleges hide the terms of loans from applicants out of fear of scaring them off. But in fact, students don’t want to know anything that might keep them from going to the college of their dreams.

Even after graduating from college, students lack the most basic knowledge of their obligations. They accept whatever payment is demanded of them unaware of what is interest or principle or the terms of complicated repayment plans. They ask themselves — How was I so gullible to accept this burden? They feel shame.

The taxpayer is also in a state of denial. They don’t mind or don’t care that the government is making bad loans. Unlike banks, the government has no bad loan account. Yet the student loan system is reeling from defaults especially from online students.

This is why Hildreth Institute will fight for ZERO LOANS. It is a bullseye right on the center of the problem. However we resolve this crisis, we cannot go back to debt. Never again!

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