Education Becomes a social burden?

On June 13, 2012, The New York Times published an opinion piece by Luigi Zingales titled “College Graduates as Collateral.” In the opinion, Zingales notes America’s disdain for “predatory loans by mortgage brokers,” and hypocritical praise of student loans. Claiming both loans to be equally economically damaging, he pleads, to avoid another economic bust, the government should cease and desist all its higher education subsidies.

He instead offers that private companies should invest in students’ tuition. Investors would receive a portion of graduates’ future income and the IRS would help enforce debt collections, relieving the monetary burden. Acknowledging some clearly anticipated opposition, he writes, “This is not a modern form of indentured servitude.” While he Zingales makes a valid point, we do need to address the rapid increase in student debt, there remains a buzz of confusion among student communities.

Are we not repeating the same cycle; just adding a individualized face to the debt? Zingales solution seems to only personalize debt packages instead. A debt is a debt, no matter the collector.  Having the IRS play the role of bully coming to take our lunch money only exacerbates the problem.  Do you think that Zingales solution brings more positive than negative? Should the government implement his proposal?