This would save young Americans from going into crippling debt, but it would also make a university degree completely unaffordable for most. However, in the age of the Internet, that doesn’t mean they couldn’t get an education.
Consider the long term impact of this. There are a lot of different ways such a situation could go, for better and for worse.
I completely agree that our favoring of, or requiring of post-secondary degrees for employement is an important cultural issue. I don’t agree, however, that the solution is to make the provision of loans illegal – illegalization is rarely anything else than a band-aid on top of a gaping wound. An argument could be made that the government provision of student loans should be stopped (in countries where that occurs e.g. Canada), but I don’t think the solution is to simply make all student loans illegal.
Hm, that is an assumption. There’s a few issues with that statement. The total cost of one’s loans are directly related to the cost of the post-secondary institution that they decide to attend. There is little reason to go to a very expensive institution. I do understand that some employers are elitist in that they won’t hire anybody outside of an ivy league school, but I would wager that that issue is not very prevalent – the free market should take up the slack. Furthermore, one’s ability to get out of such debt is related to the income that they expect from employment after attaining their degree, as well as their level of monetary responsibility, and savviness. If one decides to blindly go into student debt for studies that will offer little in return, that is one’s own risk to take. You must also not forget that there is no requirement that one must do white-collar work. Trades do not require such degrees, and are just as well-paying, if not better.