Morgan Housel

You know, you can go into gambling debt and real estate debt and discharge it all in bankruptcy and walk away like it never happened.

Student loans are with you for life.

What do you think about that?

That feels evil to me.

On one hand, I get why it happens because if it wasn't like that, most 22 year olds who graduate have no assets.

So they have no risk to go into bankruptcy.

So graduate with your dad and go bankrupt.

You have no assets.

They can't take any of your assets.

You have 20 bucks in your bank account.

Yes.

I think that's what it is.

or make it much more contingent on what kind of degree it is.

So the idea of going into 200 grand for a medical debt, cause you're gonna be a surgeon, like still a lot of debt, but okay.

And the idea of going into that much debt for an art history degree or whatever it might be, no offense to the humanities, but I mean, the idea that we price it the same and by and large give the same amount of debt for the same degree is insane.

And the other thing is that whenever you just stimulate demand like that, it just pushes up price.

So let's say we lived in a world, it's kind of too hard to put the toothpaste back in the tube now.

If you just stop student loans tomorrow, it would collapse.

But let's say we go back and there was never government-issued student debt.

There's still private debt.