Stacy Cowley

Certainly the fact that we are on track right now for huge numbers of delinquencies, huge numbers of defaults, that creates the conditions in which you would hope people would take a close look at the system and say, what can be done better? How can we fix this?

Certainly the fact that we are on track right now for huge numbers of delinquencies, huge numbers of defaults, that creates the conditions in which you would hope people would take a close look at the system and say, what can be done better? How can we fix this?

That said, part of why we've had this conversation so many times is that's kind of been the shape of the system for much of the last decade across multiple presidential administrations, Democratic and Republican. This has been for a very long time a really broken system.

That said, part of why we've had this conversation so many times is that's kind of been the shape of the system for much of the last decade across multiple presidential administrations, Democratic and Republican. This has been for a very long time a really broken system.

Yes. And that's what we just don't know. I mean, really, there's a lot of options here, but the administration has not laid out any clear policy plans whatsoever here.

Yes. And that's what we just don't know. I mean, really, there's a lot of options here, but the administration has not laid out any clear policy plans whatsoever here.

So no one's clear on is this a moment when we're actually going to make critical changes to the system or are we just going to do what we've been doing for a long time now of limping along with this broken system and leaving borrowers to kind of fend for themselves in dealing with it.

So no one's clear on is this a moment when we're actually going to make critical changes to the system or are we just going to do what we've been doing for a long time now of limping along with this broken system and leaving borrowers to kind of fend for themselves in dealing with it.

It's obviously really catastrophic for individual people and their households. The effects of delinquencies and defaults really stick with you. For delinquencies, it's going to mess up your credit score. It's going to make it really hard for you to get loans and financing. It's going to make it much more expensive for you to do that.

It's obviously really catastrophic for individual people and their households. The effects of delinquencies and defaults really stick with you. For delinquencies, it's going to mess up your credit score. It's going to make it really hard for you to get loans and financing. It's going to make it much more expensive for you to do that.

That often stops people from being able to afford the things they need for their daily lives from housing to a car to things like that. But it's also bad for the economy writ large. If people are having to really constrain their household spending, you're not going out to dinner, you're not going out with your friends.

That often stops people from being able to afford the things they need for their daily lives from housing to a car to things like that. But it's also bad for the economy writ large. If people are having to really constrain their household spending, you're not going out to dinner, you're not going out with your friends.

Exactly. So that's one area of concern. It also sort of does raise the broader question about the entire system, about is this worth it? You do see people, teenagers, people in their early 20s, questioning the concept, saying, do I want to go to college? Do I want to take on tens of thousands or hundreds of thousands of debt that's going to chase me around for decades and decades?

Exactly. So that's one area of concern. It also sort of does raise the broader question about the entire system, about is this worth it? You do see people, teenagers, people in their early 20s, questioning the concept, saying, do I want to go to college? Do I want to take on tens of thousands or hundreds of thousands of debt that's going to chase me around for decades and decades?

And that does sort of take us back to right where we were in the 60s of deciding how much we as a society want to invest in this and how broadly available higher education really will be.

And that does sort of take us back to right where we were in the 60s of deciding how much we as a society want to invest in this and how broadly available higher education really will be.

As always. Thanks.

As always. Thanks.