<p>One option is to scale back loans to private college students and direct more to lower cost state schools. I happened upon a discussion among several faculty members of one of Pennsylvania’s actual state schools where the total annual cost was around 20 grand for locals and perhaps 10-12K more for OOSers. They were talking about declining enrollment and the need to look elsewhere for students to fill the classes. If the government started pulling back on the $50-$60K/year schools, these schools would get more and higher caliber students, and there would be some incentive for the privates to become a bit more responsible. </p>
<p>It’s like it’s OK to subsidize bus or subway travel, but not the Beamer/Lexus customer.</p>