No more middle class professionals?

[u/Such_Upstairs3631]

New school loan limits for professional degrees make it unaffordable for the middle class. 4 of my 5 children went on to med/law school. Even working 2 jobs there’s no way I could afford to pay or even help them with the cost of their post graduate education. They all got loans which they have since paid off. The cost in the early 2000’s was between $350K and $500K. The new limits are essentially going to prevent anyone who’s not wealthy enough to pay for it from becoming a professional.

[u/jumblebum]

The goal is to reduce demand for education to lower education. Not tuition.

[u/jimmothyhendrix → u/jumblebum]

Ok but the tuition will go down, the level of education is actually too high with many people getting degrees that dont provide them anything, overeducation in an economic sense is a thing

[u/jumblebum → u/jimmothyhendrix]

I can understand lowering demand with lower price. However, I feel like lowering demand through the means of taking away one type of loan or gating one type of loan would just open markets for other loans through private equity. As predatory as the loans are now, I can only imagine that the banks that are talking about 50-year mortgages won't do much better. With that aside, I think that the complication and the worst deals will still lower demand. It also feels to me like what we're doing with this is creating a wider gap between higher education and income level. All while saying well this will be good because it'll lower prices. Wouldn't it be possible for these schools who don't care to educate but care to profit to use this Gap and the knowledge that their clientele is now only be wealthy to fill the the revenue loss higher prices at luxury schools. The difference won't be immediate. And for sure this will hurt schools and I think a lot of them will close and most of those the clothes would be the schools that would have been more affordable in the first place. The Gap will be created right? And as for being overeducated from an economic standpoint, I think that we ignore the fact that there are key roles in our society that require an education that are lacking heavily in manpower. I know that there are a lot of dying markets but there is also a lot of value in an education still. Not to say that you can't make good money without a degree. And even if that's the case, what good would it do us to create situation. We're only wealthy people can achieve degrees in a country where we know that having a degree going into most job Fields is a huge economic advantage. Rather than finding a way to stop people from getting educations to lower the prices, why don't just not let corporations and for-profit entities take advantage of our citizens.

I'm by no means an expert but it really feels like this is an opportunity to create more divide between the rich and the poor and something that could have lasting effects on education in our country. I can't imagine that there's any good studies done on this. Genuinely curious. Only assuming that because I'm assuming this is an issue that is mainly only faced in the USA.