Student loans are a big problem, and suddenly the media has noticed it.

But let’s look at them from another angle.

Multi-ethnic students (not my description mind you) discussing how to pay off their student loans
Multi-ethnic students (not my description mind you) discussing how to pay off their student loans

Who is profiting from these loans?  The government, yes, they are making money on them.  Businesses, yes, they are also.   Most people know this. (Though it is not as simple as you think.)

However, think a little deeper.  Why are the colleges so expensive?

Competition–College Alpha has to be better than College Beta, or it cannot attract good students.  It needs a new gym.  It needs an ivy covered dorm.  It needs the most famous professors.

And, College Alpha may still lose, unless it has better students.

So . . . it needs scholarships.  Which will pump up the price even more, so in effect, mediocre students or average students are financing college for those who are smarter than they.  Yes, it is true.

Competition is driving the prices higher–among colleges and among students, and of course, average students suffer while the more studious students gain.

Is this right? I am not sure.  There is some value in having the more studious students be rewarded for their hard work, but education is often unfair and unequal, so handing out scholarships is a poor way to determine “smarts”.

Is it right for the government and businesses to make money from college students?  To put them in debt to pay for their education?  No.  Of course not.  This system needs serious changes.

However, we also have to look at another angle.  What makes college students so special?  What about the family that bought a house only to see Dad get laid off by a company trying to increase profits by .001%?

What about the people working at minimum wage jobs that are scraping to get by?  Are the college students worse off?  Is it any more unfair?

I don’t think so.  Loan and debt problems go far beyond student debt.  Student debt is, in itself, a result of hyper competition among colleges.  That, along with business, government, and colleges deciding to take advantage of the average students.