Posted on 03/19/2019 5:28:19 AM PDT by reaganaut1
WASHINGTON—The White House is calling on Congress to cap how much graduate students and parents of undergraduates can borrow in federal student loans, a proposal it said is aimed at curbing rising college costs.
White House officials publicized the proposal as part of a broader set of ideas it is urging Congress to adopt as lawmakers undertake a rewrite of the Higher Education Act, a 1965 law that governs student loans. The law hasn’t been reauthorized since 2008, and Democrats and Republicans agree it is due for an overhaul given the growth of online and other nontraditional degree programs.
The package of proposals, the White House’s first official statement on higher-education policy since President Trump’s election, focuses primarily on the cost of college and workforce training.
“Unfortunately, many colleges and universities have not been providing Americans the education they need to succeed in a cost-effective manner,” White House press secretary Sarah Sanders said after releasing the proposals.
Graduate students and parents can borrow as much as schools charge in tuition, plus more for living expenses. The White House didn’t specify proposed limits.
Democrats broadly oppose putting limits on the federal student-loan program, as they believe it exists in part to extend credit to people who traditionally have had trouble obtaining private loans.
“The White House’s proposal is a feeble attempt to claim the Trump Administration is helping students by identifying one symptom of rising student debt, while completely ignoring the root cause—that college costs are rising exponentially,” said Sen. Patty Murray (D., Wash.), the top Democrat on the Senate Education Committee.
The proposed loan caps reflect criticism, particularly from right-leaning academics, that unlimited borrowing for parents and graduate students allows schools to charge higher prices than they would if limits were in place.
(Excerpt) Read more at wsj.com ...
Waiting for Leftist foot stomping about limiting access to higher education in 3...2...1...
Should also make the loans dischargeable in bankruptcy.
Democrats broadly oppose putting limits on the federal student-loan program, as they believe it exists in part to extend credit to people who traditionally have had trouble obtaining private loans.
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Student loans are used to subsidize the liberals working at universities and colleges.
The government ruined education like everything else. In this day and age with the internet and connectivity, higher education should be commoditized and nearly free.
no government backed loans will drop the price fast
So will taking the costs of the student loan decable out of the hides of the schools that benefited from them.
Let them sell equipment, and property and empty endowments and pay off the loans.
I am done with the elite gouging the people.
and tired of their choir whining that the wrongness it somehow the people’s fault.
Trump administration porpoises!
Officially sanctioned, dude.
College loan limits should be tied somehow to the future earnings potential of the major that the student chooses. Start with Starbucks Baristas, and work backwards to see what the most common college major was for those people. Cold provide some interesting results, with real world numbers, not college faculty lounge fantasies.
I could understand allowing borrowing for engineering and medical degrees to continue at 100-percent. Beyond that, I wouldn’t allow a yearly amount to go past $12,000. A lot of these dimwits haven’t grasped the out-of-state cost difference. If you toss in degrees which are useless and will never get you more than $40,000 a year in salary, then why loan out $100,000 for a one-star marginal degree.
The only catch is that said loans are only made on universities located within the State of North Dakota, few of which offer useless and unmarketable degrees.
They used to be. I think that changed in the 90s.
In-state tuition at one of our state universities $12,000 per year for an undergraduate degree. Housing costs the same. So by your metric no one is going to college unless they can pony up for it.
Should also make the loans dischargeable in bankruptcy.
They don’t go away because they were discharged. Someone takes the loss: Hint taxpayers. You see, the education industry now has become too big to fail.
I am beyond tired of underwriting everyone of these demgop party schemes like the mortgage loan “crisis” of 08. What would have happened without the bailout? Well, the banks would have gone under so we could not let that happen. 10 years later, same loans being made during a real estate bubble that will rank up there with the tulip bulb folly of the 1600s.
Why?
I seem to recall that the default numbers for student loans is pretty high. Anyone recall?
There should also be restrictions on what majors would qualify for loans.
Ex: No loans for Gender Studies, Philosophy, or Liberal Arts majors.
Qualified majors should include STEM, Business, Healthcare/Medical.
The Administration should do better at promoting the GI bill as well (with same major restrictions).
Dunning Kruger... stupid people are too stupid to know how stupid they really are... that, along with not knowing the true value of a dollar, or how tediously long hours of working shift drudgery are when you earn low wages! They’ll never be out of debt, ever!
GI Bill might have been a better option for many of them, they could have actually learned something useful and recieved many excellent clues about life along the way.
Useless degreed knuckleheads, all of them!
If they do this, how are the students going to be able to afford a spring break vacation?
I’m suggesting $12k limit per year, and a total of $48k for four years.
A good example here, if you attended Auburn Univ in Alabama, the semester tuition (alone) is $5,700. Out-of-state? $15,500 per semester. It makes no sense for a out-of-state kid to go to the Auburn program, even if it has the best electrical engineering degree program in the nation.
However, for room and board...because of the rural nature of Auburn, the cost is around $6k per semester.
If a kid was smart and did two years of community college in Alabama (living out of the dad’s basement) and then only spent two years at Auburn to wrap up his electrical engineering degree, the whole bill for four years would only end up in the $50,000 range.
What these kids are missing is an economic lay-out of the cost, the future earnings, and the unwise decision to do a out-of-state situation.
Get the government out of the student-loan business, and that’s not a problem.
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