The unemployment rate for college-educated young men has surged to 7%, matching that of their peers without a degree. This parity indicates that a traditional degree's value in securing entry-level employment is eroding for this demographic, challenged by AI automation and increased competition from experienced workers.

The decision for a child to attend college, especially if it involves taking on debt, should not be dictated by parents who aren't funding it. The person paying for the experience gets to influence the decision. Parents pushing their kids into debt for their own social validation are acting selfishly.

In an era where any subject can be learned online, the main function of college is providing a structured, semi-independent environment for young adults. It serves as a social transition between living under parental rule and entering the professional world, a role disconnected from its academic purpose.

A surge in student loan delinquency rates to double-digit levels indicates significant financial distress, particularly for the middle third of the income distribution. These borrowers are forced to prioritize essential expenses like housing over their loan payments, revealing a deepening affordability crisis.

Economist Arthur Laffer argues that debt is merely a tool. Debt used for productive investments that generate high returns (e.g., Reagan's tax cuts to spur growth) can be beneficial. In contrast, debt used for non-productive purposes (e.g., paying people not to work) is destructive to the economy.

The traditional value proposition of college is being challenged by AI tools that offer instant, expert-level information. For aspiring entrepreneurs, this shifts the calculus, making immediate real-world experience a more attractive and faster path to success than incurring debt for a formal degree.

To fix the student debt crisis, universities should be financially on the hook for the first portion of any loan default (e.g., $20,000). This "first loss" position would compel them to underwrite the economic viability of their own degrees, creating a powerful market check against pushing students into overpriced and low-value programs.

The massive investment gap in education ($75k/year at elite private schools vs. $15k at average public schools) creates an insurmountable advantage for the wealthy. This financial disparity, which translates to a 370-point SAT gap, is a more powerful determinant of future success than individual character or talent.

Congressman Ro Khanna argues that not all deficit spending is equal. Spending on programs like healthcare and education can be justified as 'productive investments' if their long-term rate of return for society is higher than the initial cost, distinguishing them from non-productive spending.