Stop giving every student a loan. That’s Megan McArdle’s advice on Bloomberg View.

Talking about accredited four-year schools as well as for-profit colleges, she says:

“…stop making the loans directly, then invite private companies back into the student-loan market — and force them to eat some of the losses.” So the companies will have to do what government has failed to do:  “Assess which schools and programs actually add economic value and refuse to fund the ones that don’t.”