Posted on 06/08/2019 3:29:53 AM PDT by reaganaut1
The U.S. student loan system is broken.
How broken? The numbers tell the story. Borrowers currently owe more than $1.5 trillion in student loans, an average of $34,000 per person. Over two million of them have defaulted on their loans in just the past six years, and the number grows by 1,400 a day. After years of projecting big profits from student lending, the federal government now acknowledges that taxpayers stand to lose $31.5 billion on the program over the next decade, and the losses are growing rapidly.
Meanwhile, four in 10 recent college graduates are in jobs that don’t require a degree, according to the New York Federal Reserve. And many American colleges are dropout factories: At more than a third of them, less than half of the students who enroll earn a credential within eight years, according to the think tank Third Way.
The U.S. is shoveling more and more money into a highly inefficient system that, polls find, Americans are increasingly dissatisfied with. College tuition has soared 1,375% since 1978, more than four times the rate of overall inflation, Labor Department data show. The U.S. now spends more on higher education than any other developed country (except Luxembourg)—about $30,000 a student, according to the OECD. Meanwhile, college presidents are being handsomely rewarded for the success of their enterprises: Seventy of them, including a dozen at public colleges, earned over $1 million in 2016-17, according to the Chronicle of Higher Education.
How did we get here?
The student loan system was built in the 1960s on the overarching belief that higher education is a safe and worthy investment for both society and the individual. At the time, the first children born after World War II—the baby boomer generation—were beginning to graduate from high school and enter college.
(Excerpt) Read more at wsj.com ...
Contribution to what?
Why is it a “crisis?” The left only calls things a crisis when it sees a chance to impose new laws that take away our rights or money.
The WSJ is not worth getting.
The campaign to set a $6K limit and restore bankruptcy protection, of course.
I hate the people responsible for this disaster almost as much as I hate Free Traitors™
Nah.
I'm to the right of Taras Bulba and I would do anything to cancel the debt and repay the government by destroying universities.
Which is a product of grade inflation in the public schools. Everyone knows we are graduating seniors who can barely read and write. But if we start holding kids back who can't pass, we'll have a bottle-neck in the 3rd grade.
Great stories—all of them!
And thank you and congrats.
We will need to take a write down on existing debt. It’s not good for anybody to have millions and millions of Americans in debt servitude such that they can’t buy houses or have kids - and yes this absolutely plays into both.
Going forward, student loans need to be limited to productive majors like STEM. If you want to major in gender studies, you pay for it - no taxpayer funded loans.
We also need to force universities to slash administrators. They’ve added armies of them in the last 40 years. They’re not needed.
We need to start a PAC and push this idea.
That’s aside from them wasting money to justify the income, whether building lazy rivers on college campuses or the bloated, expensive diversity bureaucracy.
Bureaucrats And Buildings: The Case For Why College Is So Expensive
https://www.forbes.com/sites/carolinesimon/2017/09/05/bureaucrats-and-buildings-the-case-for-why-college-is-so-expensive/
The Campus Diversity Swarm
Cultivating the imaginary grievances of an ever-growing number of “oppressed” groups, a costly administrative infrastructure threatens the goals of higher education.
https://www.city-journal.org/campus-diversity-bureaucracies-16223.html
It’s a byproduct of qualification testing being ruled discriminatory.
In my case too. Someone else said it.
Six years.
I know people who will need 30.
Take the assets from the eduction industrial complex
It will get rid of lots of the educational complex, which is sorely needed.
can you imagine the looks on their faces as instead of the taxpayers holding the bag, that the education industrial complex takes the hit they deserve for their evil? Hitting their endowments and assets would be the best thing that ever happened to the the entire system.
The right way to do that is to stop subsidies—not to illegally confiscate and redistribute assets.
Well said.
Only if the taxpayer is not on the hook.
Let the education industrial complex liquidate assets and pay it off.
Subsidies should be stoped.
Loans for education via fed gove or state gov shouuld be stopped.
The entire merry go round stopped. The endowments and the assets tapped. All paid off.
Then educaiton complex will need to be competivie financially.
Lot of “studies people” will be losing their jobs.
Classic Soviet/Marxist theft. The vast majority of endowment funds are at the top tier of schools that have had nothing to do with this.
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Classic leftists purputrated this system on the people. They need to pay, they neeed to be weeded out.
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