> 2. buy insurance. You get a payout of your tuition if the college fails.
This is madness. Should you have to buy individual insurance in case your bank fails? Your city goes bankrupt? Your police department goes on strike? Regulating and maintaining institutions is the job of the government, not an expense to be passed on to private citizens.
People buy insurance to mitigate financial risk all the time. There's nothing offensive about it.
And a private business is fundamentally not a police department or a city government. We don't pay taxes to a private business, for example, and a private business doesn't make laws we have to follow.
> 2. buy insurance. You get a payout of your tuition if the college fails.
I believe we're going to start seeing this is the education bubble doesnt pop soon. Not only for bankrupt colleges but for parents who are worried their kid will drop out after paying XXX in loans.
Not all these people can even get into a state school, and some of the degrees they are getting are sub standard.
You don't need 50K+ in loans to become a nursing assistant or culinary arts, and based on your job prospects you will have a great deal of difficulty generating enough income to pay off the loan.
Many of these private schools are scams specifically designed to exploit the higher education financial aid system.
1. tuition money goes in escrow. It's refunded if the college goes under. It's paid out otherwise.
2. buy insurance. You get a payout of your tuition if the college fails.