You're confused. Colleges and universities have made (poor) decisions that have increased their cost, ostensibly to attract enrollment because of all the tuition/fee dollars out there for the taking.
If those tuition/fee dollars dry up, then that money isn't out there floating around to chase after with poor decisions.
However, all the previous poor decisions were still made, and they're still paying for all the extra buildings and gardens and resort spa dorms thinking they'd have time to pay them off. Not to mention the absurd increases in (non-faculty) staff levels... those people might be looking at unemployment.
But, and this is the most important point: allowing bankruptcy is never a bail out. It's the acceptance of reality. Yeh, "loan forgiveness" is sort of screwed up, but why has bankruptcy been denied these people? Why is education debt such an important kind of lending that we must make an exception for it and allow the lender to do what we allow no other lenders to do?
If those tuition/fee dollars dry up, then that money isn't out there floating around to chase after with poor decisions.
However, all the previous poor decisions were still made, and they're still paying for all the extra buildings and gardens and resort spa dorms thinking they'd have time to pay them off. Not to mention the absurd increases in (non-faculty) staff levels... those people might be looking at unemployment.
But, and this is the most important point: allowing bankruptcy is never a bail out. It's the acceptance of reality. Yeh, "loan forgiveness" is sort of screwed up, but why has bankruptcy been denied these people? Why is education debt such an important kind of lending that we must make an exception for it and allow the lender to do what we allow no other lenders to do?