Student loans are out of control because tuition and housing are out of control because professor salaries are out of control.
The Government subsidies of college education has become a cash spigot for the liberal socialists professors and staff at colleges so they can make up new courses than have more to do with “social justice” than any actually skills or classical learning so they can use the next set of rubes coming through to milk more money from the state....
Just get the government out of the student loan business and let private entities run the market.
No?
Federal law forbids discharging student debt through bankruptcy, and further, allows non-student expenses to be charged to this non-dischargeable debt.
A) Interest on this debt should be zero. There's near zero risk of the debt never being paid (much of it is federally guaranteed as well.) Anything more is extraordinary usury.
B) Anything other than tuition really should be excluded from this non-dischargeable debt. Some of the lovely things charged include: Mandatory health insurance, room & board, supplies purchases, beverages, etc.
But the only way to ‘make campuses have skin in the game’ is to END the free ride - make student debt once again subject to bankruptcy. Lenders will make actual financial decisions as to the possibility of being repaid. Why did this change? Because most lenders wouldn't give loans for someone going for their doctorate in inane social studies courses - they felt (and have been repeatedly proved correct) that they'd never see their money again.
I like it. And it may put an end to the fly by night degree mills who’s greatest interest is getting federal funds.
Excellent idea Colleges should have skin in the game.
Let their SS# be pegged to the school district and let every HS graduate's SS# be pegged to that district
Now ... if the kid makes money, a small percentage (I haven't thought it through ... FReeper help welcome) .. 1/2 of 1% .. something .... goes to the XYZ school district teacher's pension fund
If y'teach a kid to be productive, you'll be able to retire (of course it'll take time, but the alternative is ... ) relatively well and the community is no longer taxed
The free market solution is to get the government out of the education business and the loansharking business, and let the market sort out the best way to handle it.
I’m not sure how many kids actually want to be educated.
They want a college experience, and they want to be certified as acceptable to society, but I’m not so sure they want to be educated.
There is already a mechanism for this. Make student loans dischargeable in bankruptcy court and all problems go away overnight. Restructure or liquidate loans and there will be a sea change and a massive drop in the cost of attending college. It will also limit superfluous degrees and departments.
They will return to institutions of higher learning, not spa/resorts for kids with no clue.
If colleges had to co-sign/guarantee student loans, they would be much more careful with their admission requirements.
I wonder what the employment rate of the top ten Ivy league schools is relative to the success rate of Trump U attendees?
get the Federal Gov’t out of this completely.
This is exactly like the housing bubble. Fake printed Federal Reserve money at ZERO interest rates, with the sluice-gates of Federal Regulation and back-stops wide open in a politically-favored industry, are blowing a huge debt bubble.
Any school that has a high number of loan-defaulting students should lose its accreditation
The solution is simply to end student loan program, excepting for military vets.
Colleges will crater and become reasonably-priced again.
I completely disagree. Colleges and universities are simply "putting their product out there." It's not up to them ensure its students choose wisely; it's not up to universities to ensure its students choose majors and fields of study that will guarantee any sort of outcome upon graduation.
If students would choose their majors and their classes more wisely, everything else would fall into place. If colleges and universities stopped bowing to political pressures, they wouldn't feel the need to conduct social engineering on their campuses. They wouldn't drape tenure on professors who've become nothing more than professional agitators, leading campus sit-ins and protests and marches against the administration, insisting upon certain wages and certain racial compositions in their janitorial and clerical staffs--something students should have no concern over.
If we as parents (and taxpayers) started to enforce the notion that college is an investment in the young adult's future, and that in any investment, a positive return is expected. And if we explained that no 4+ year degree is worth going in debt for $150 thousand dollars or more, if all you could expect to make is $30 thousand dollars per year annual salary. It's not greedy CEOs holding you down; it's that degrees in Medieval Literature, Women's, Black or Transgender Studies don't have much of a market.
Something like this needs to happen.
Colleges are raking in mountains of cash, and dumping people with no skills out into the workforce. This would force some accountability on their part to their students and to society.
Why does college cost so much?
Because they can.
Why can they charge so much?
Because the US provides loans available for anyone with a pulse.
Kill the loans, we kill the flawed process. It will all work out.
There is a major constitutional problem with vote-winning federal student loans imo. The states have never delegated to the feds, expressly via the Constitution, the specific power to regulate, tax and spend for INTRAstate schooling purposes.
in fact, Thomas Jefferson had indicated that the states would need to amend the Constituton to give the feds the express power to tax and spend for intrastate schooling purposes, again, something that the states have never done.
“The great mass of the articles on which impost is paid is foreign luxuries, purchased by those only who are rich enough to afford themselves the use of them. Their patriotism would certainly prefer its continuance and application to the great purposes of the public education, roads, rivers, canals, and such other objects of public improvement as it may be thought proper to add to the constitutional enumeration of federal powers [emphasis added].” —Thomas Jefferson: 6th Annual Message, 1806.
Also note that a previous generation of state sovereignty-respecting justices had clarified that Congress is prohibited from appropriating taxes in the name of state power issues, basically any issue that Congress cannot justify under its constitutinal Article I, Section 8-limited powers, appropriating taxes for intrastate schools not listed under those powers as Jefferson had indirectly indicated.
“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.
So the states need to wise up to the idea that the corrupt, post-17th Amendment ratification feds are stealing state revenues in the form of unconstitutional federal taxes, revenues that the states could be using to back up state student loans.
Remember in November !
When patriots elect Trump, Cruz, or whatever conservative they elect, they need to also elect a new, state sovereignty-respecting Congress that will not only work within its constitutional Article I, Section 8-limited powers to support the new president, but also protect the states from unconstitutional federal government overreach, putting a stop to unconstitutional federal taxes for example.
Also, consider that such a Congress would probably be willing to fire state sovereignty-ignoring activist justices.