Skip to comments.Pursuing Serious Student Loan Reform: Legislation must focus on lowering tuition costs and ensuring that students are pursuing degrees that are likely to offer financial security
Posted on 05/04/2021 6:47:18 AM PDT by SeekAndFind
The first 100 days of the Biden administration have been marked by extraordinarily costly pieces of legislation, led by the passage of a $1.9 trillion COVID stimulus bill, with another $2 trillion infrastructure proposal currently under congressional consideration. Thus, you can be forgiven if, amidst this spending bash, you happened to overlook another radical proposition from the administration: student loan forgiveness, which, if enacted, would cost an estimated $1 to 1.7 trillion.
Student debt statistics are indeed sobering: the average college graduate owes roughly $30,000, and student debt has doubled within the past ten years. Although these numbers are deeply troubling, there are innumerable reasons why student debt cancellation is terrible policy.
The most basic argument is to note that students and their families willingly and knowingly agreed to the terms of their loans, and therefore are fully responsible for paying off their own debts. Of course, the trillion dollar price-tag of debt relief is a major cause for concern that will impact the long term health of the economy. Moreover, because the wealthiest in our society tend to have the highest amounts of student debt, student debt cancellation would simply exacerbate economic inequality, and would do little for those in our nation who are most in need. Finally, and perhaps most importantly, debt cancellation will only incentivize future generations of students to take on more debt, rather than alleviating the underlying factors that have contributed to the current student loan crisis. The cost of higher education has risen dramatically over the past 30 years, with tuition costs increasing eight times faster than wage growth. Over the past decade, public colleges, which are supposed to provide a low-cost option for students, have increased tuition by 55%.
(Excerpt) Read more at americanthinker.com ...
...gender perversion, embracing racism, advocacy, etc.
This is, in many cases, false.
End the Dept of Education
All they do is distribute Federal Money, create rules, and run a huge debt-enslavement machine to keep leftist university administrations alive and operating.
Its just another central government and social-engineering power-grab.
The fix is relatively simple. Colleges should have to co-sign on any tuition loans. Because if that were the case, colleges would start to police themselves.
Hillsdale forbids government loans and refers their students to their own group of lenders. The lenders offer great rates because Hillsdale students tend to grow up to be productive members of society. Their default rate is near zero.
The Bank of North Dakota distributes loans for colleges within their borders. Loan amounts are strictly limited to students making clear progress toward graduation and a degree. If you want to major in something exotic and unmarketable, you have the dual challenge of finding a college in North Dakota that offers the degree and finding enough loan money from the bank to finance it. There is a reason that useless people with useless degrees don't stay in North Dakota very long. Again, their default rate is near zero.
We don’t need tuition reform, we need to eliminate all government intervention and subsidies. Then the market will level out to very close to optimum market value.
The useless degrees are only being offered so that people who do not have the academic chops can still get a college degree without actually learning anything valuable. It’s a symptom of the typical liberal logic that the piece of paper = academic achievement.
Think of the Wizard of Oz. . .liberals love their fantasies and honestly believe that if they believe them hard enough, they will become truth.
But then, eventually reality kicks in. . .but will it be soon enough?
RE: ...gender perversion, embracing racism, advocacy, etc.
You hit the nail on the head. There is one solution for it, but it requires courage on the part of policy makers.
Policymakers should therefore reform our financial aid system to incentivize students to pursue degrees based upon labor market demands.
In other words, tie financial aid awards to the economic importance of the degree being pursued. Decrease financial aid for degree plans where there is a labor surplus.
By obtaining degrees in areas with high job demand, students would be more likely to repay loans, and the nation as a whole would benefit by addressing labor shortages with domestic workers.
Also, focus on TRADE SKILLS. One does not need 4 years and high tuition costs to obtain this.
Studies like how to cause major disruption in everyday working families lives. How to burn and loot cities. That’s what they have been teaching our kids. Whatever Dementia Joe’s administration has in mind. Count on it, not being good for America and Americans.
Any time you sign a contract it is your sole responsibility to know and understand the terms and conditions!
>>This is, in many cases, false.<<
How so? When I was 18 and took student loans out (which I repaid as promised) I knew exactly what I was promising and signing.
I do admit that students today are MUCH less mature than students in our day but still they should be able to understand a simple promise to pay.
It’s interesting because the “Master Promissory Note” students sign these days for federal student loans list NO amount borrowed—it’s a “blank check”—the MPN is just a 10 year flow of endless generous $$ for any and all schools attended for 10 years, plus never-ending “refunds” (to the student) for room and board!, or whatever else they want to use the $$ for!
If colleges only offered core major courses and skipped the humanities and the political doctrine classes, that would save tens of thousands per student.
A loan is a loan, not a gift.
Liberals want “free” tuition, but why should a plumber’s daughter have to pay for the tuition of a lawyer’s son?
How so? Someone takes out a loan they’re supposed to pay it back.
If someone, as a parent, co-signs a load for their kid, who wants to get a degree in Post Neanderthal Feminist Poetry and can’t figure out that it’s going to cost over $100k and be worthless, then that’s on them.
Commence wage garnishment now.
Funny that in every other industry, we can hear of budget cuts, but when it comes to secondary education, the only folks that stand to lose anything are the maintenance folks and the sports programs. No radical left wing professor ever loses their precious tenured positions no matter how worthless the class they teach 2d a week is.
And then the taxpayer or parents are forced to fork over more money for the tuition increases.
Look no further than FedGov to find the source of the problem.
Colleges take FedGov money.
FedGov attaches strings to that money.
Over time the number of FedGov strings attached to each dollar increases exponentially.
Entire bureaucracies are created at colleges to please the FedGov bureaucrats.
Combine the FedGov mission creep with the proliferation of degrees that are useless in the real world and there you go. Young people with useless degrees and student debt their useless degrees can’t help them pay for.
Add in the fact that between 30-80% of college students change their majors at least once in four years and there goes more debt.
Colleges have a great racket going.
Damned if I want my money going to pay for their ignorance and stupidity.
Can anyone tell me why a social worker, who probably starts out in the $30-40k range, need to spend over $100k to get a Masters to qualify for a job?
Especially, when all they do is hand people forms for more benefits.
The folks coming into to those offices know the system inside and out. Better than the social workers because all they want is more bennies and know all the scams.
Turnover is disgustingly high. My cousin did it. She’s kind of a millennial lib. Thought she was going to help folks. Not so much.
Force the Universities to use their TAX FREE ENDOWMENTS to pay off Student loan debt!!!
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