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I really like this idea from Kurt Schlichter: “student loans need to come from the school and to be dischargeable in bankruptcy”
Wordpress ^ | July 9, 2020 | Dan from Squirrel Hill

Posted on 07/09/2020 6:10:09 AM PDT by grundle

I really like this idea from Kurt Schlichter: “student loans need to come from the school and to be dischargeable in bankruptcy”

Kurt Schlichter just wrote this excellent column, with a whole bunch of ways to improves colleges.

Of Schlichter’s many excellent ideas, this one is my favorite. He wrote:

Third, student loans need to come from the school and to be dischargeable in bankruptcy. A school is going to be a lot less eager to say, “Sure, go ahead and major in Norwegian Feminist Dance Theory” if they are on the hook when their ardent young scholar can’t get a gig that can pay back the sticker price.

That’s brilliant – absolutely brilliant.

I hope Schlichter’s idea gets adopted as national policy.


TOPICS: Miscellaneous
KEYWORDS: kurtschlichter
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1 posted on 07/09/2020 6:10:09 AM PDT by grundle
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To: grundle

That is the single most brilliant policy idea I have heard in years.

Brilliantly simple.
Devastatingly effective.


2 posted on 07/09/2020 6:11:49 AM PDT by edwinland
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To: grundle

The government won’t voluntarily relinquish one speck of power, no matter which party has control.

It’s a disgrace that the federal government subsidizes education at all.


3 posted on 07/09/2020 6:15:03 AM PDT by Cboldt
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To: grundle

Small trade schools won’t be able to function with this, they need the funds for current operations.


4 posted on 07/09/2020 6:19:47 AM PDT by Fido969 (In!)
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To: Fido969

The schools would be able to secure loans based on the future cash payments. If the students don’t pay...everyone loses.

I agree that schools with small endowments would not be able to do this very long with any kind of default rate.

I always thought it would have been cool to make the schools foot the bill for a percentage of the students next 20 years of earnings. Every once in a while you will hit the jackpot with a Zuckerberg or Gates.


5 posted on 07/09/2020 6:22:12 AM PDT by Vermont Lt
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To: edwinland

“That is the single most brilliant policy idea I have heard in years.”

Agreed.

Perhaps not THE MOST, but certainly one of the most.

Car companies finance their cars. For many, just as much as 4 years at a state school.
Let schools finance their product.


6 posted on 07/09/2020 6:24:25 AM PDT by Macoozie (Handcuffs and Orange Jumpsuits)
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To: grundle

It’s brilliant. It makes schools responsible and maybe they will stop offering classes in fluff studies, or at least make people finance it themselves.

I have been suggesting that banks give the loans with no federal guarantees. That way they know which jobs are not flooded and the career path chosen will provide sufficient money to repay the loans.

BUT I like the schools loaning the money better.


7 posted on 07/09/2020 6:25:16 AM PDT by McGavin999 (Not one politician or journalist has died of Covid)
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To: Cboldt
Third party money screws everything up, from the housing market to education costs. Especially in education, it eliminates price sensitivity, which makes it possible for colleges to charge whatever they want. Only years later, after graduation, do the foolish students realize what a deep hole they’ve dug in their pursuit of that “intersectional basket weaving” degree.

I agree that this idea to put the colleges on the hook for student loans is brilliant. I would prefer, though, to eliminate loans altogether. Force the colleges and universities to price their product according to what students can afford to pay out of pocket, and the absurdly inflated cost of higher education would realign with reality.

8 posted on 07/09/2020 6:26:59 AM PDT by noiseman (The only thing necessary for the triumph of evil is for good men to do nothing.`)
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To: grundle

I’ve been saying this for years. I’m glad somebody with a bigger voice is also bringing up this idea.


9 posted on 07/09/2020 6:30:31 AM PDT by gubamyster
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To: Cboldt; 1_Rain_Drop; 3D-JOY; Abbeville Conservative; Abby4116; acoulterfan; aft_lizard; ...

https://uncoverdc.com/2020/07/08/back-to-school-the-pending-democrat-student-deficit-iceberg/

If you haven’t seen this, I think you’ll find it encouraging.


10 posted on 07/09/2020 6:36:02 AM PDT by LS ("Castles made of sand, fall in the sea . . . eventually" (Hendrix))
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To: Fido969

People aren’t going to trade school and then complaining about a lesbian gender studies degree not getting them a job.


11 posted on 07/09/2020 6:38:00 AM PDT by lerker
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To: lerker

12 posted on 07/09/2020 6:40:26 AM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change with out notice.)
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To: LS

Excellent analysis Larry. Thanks for sharing!


13 posted on 07/09/2020 6:51:10 AM PDT by tatown
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To: McGavin999

One of my kids graduated from a small private engineering university. They had a unique thing. A 90 day employment guarantee.

If a graduate was unable to get a competitive job I his field, they could take Masters Degree classes for free.


14 posted on 07/09/2020 6:58:06 AM PDT by cyclotic (The most dangerous people are the ones that feel the most helpless)
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To: grey_whiskers

good one! lol


15 posted on 07/09/2020 7:03:10 AM PDT by lerker
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To: grundle; SunkenCiv; Liz; a little elbow grease
Third, student loans need to come from the school and to be dischargeable in bankruptcy.

A school is going to be a lot less eager to say, “Sure, go ahead and major in Norwegian Feminist Dance Theory” if they are on the hook when their ardent young scholar can’t get a gig that can pay back the sticker price.

Brilliant... an idea who's time has come...

16 posted on 07/09/2020 7:09:55 AM PDT by GOPJ (Leo Terrell - Michael Shellenberger - Stephen Hsu.."TRUTH is the new HATE SPEECH" - (jimred)
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To: edwinland

And since much of the ‘student loan’ problem comes from rip-off companies in the black community that sell, “Be a Trucker - Make Big Money’ - ‘Learn to Code’ crap - - this one change would put a stop to that crap too.

Brilliant.


17 posted on 07/09/2020 7:14:17 AM PDT by GOPJ (Leo Terrell - Michael Shellenberger - Stephen Hsu.."TRUTH is the new HATE SPEECH" - (jimred)
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To: grundle

It’s time to drop the whole idea of student loans.

Sure, if banks want to give top scholars at med, engineering or law schools a loan, that should be up to them. But the government should be fully out of the student loan (and grant) business. Community college while working is just fine through the associates level, with state universities already taking students after that in pretty much every state., That’s of course unless kids have wealthy parents want to give them a four, seven, or whatever year paid holiday, or the wealthiest schools want to give our poorest top students scholarships.

Working your way through college was perfectly respectible and quite common into the ‘80s, at least. We can just go back to that, thank you.


18 posted on 07/09/2020 7:20:53 AM PDT by 9YearLurker
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To: edwinland

Horrible idea. Colleges are on the brink as it is and unlikely to have any greater competence in dishing out loans than they have in anything else.

Just drop the whole student loan idea—with very rare, free-market exceptions.


19 posted on 07/09/2020 7:22:23 AM PDT by 9YearLurker
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To: grundle

Great idea!

Student loans would suddenly dry up and all the ethnic, feminist, queer studies, etc would disappear.


20 posted on 07/09/2020 7:23:24 AM PDT by aquila48 (Do not let them make you care! Guilting you is how they control you.)
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