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Here's How We Solve Impending Student Loan Disaster
Townhall.com ^ | November 18, 2016 | Wayne Allyn Root

Posted on 11/18/2016 10:34:25 AM PST by Kaslin

For those of you who are unaware, America is facing a student loan disaster. The facts are frightening. Student debt is now in excess of $1.2 trillion. Yes, TRILLION. To put that in perspective, student debt is more than the total of all of America’s credit card debt.

Now comes the really bad news.

Twenty-five percent of those with student debt are in delinquency or default…that is, right now American taxpayers are on the hook for $300 billion, or approximately $1000 for every man, woman and child in this country.

Yes, you, your spouse and your 4-year-old child who has yet to start pre-school are each saddled with $1000 in student debt.

But wait, it’s much worse. The New York Fed reports that of those who are paying their student loans, fully 71% are only paying interest… potentially leaving the taxpayers on the hook for the other $600 billion in principal. That means your 4-year-old child already owes $3000 in student debt even before starting pre-school. If this doesn’t frighten you, it should.

Well, I have the solution. Read on.

Liberal politicians have complained that “for-profit” educational institutions that are not delivering the education and jobs they have promised should be required to pay back the tuition and fees to the students they have failed. This is one time I agree with them.

But why doesn’t this apply to EVERY educational institution?

Is there any difference between “Joe’s Auto Body Repair Institute” or “Mary’s Hairstyling College” failing to adequately train its students so they can get a job…versus Harvard University failing to adequately train its students so they can get a job…versus a public university failing its students?

When any of these institutions take a student’s money, they are entering into an implied contract to educate that student to be better positioned to survive in the “real world” and be able to repay what it costs to get that education.

So, my solution…

Every educational institution, whether it be Joe’s or Mary’s or Harvard or Ohio State, is ultimately on the hook to repay a portion of the student loan, if the student is unable to.

One could easily argue the college should be on the hook for the entire loan. But let’s be fair and reasonable. The college should certainly be responsible for half of that loan, while the student should take personal responsibility for the other half. The student needs skin in the game too- to force them to get out of their parents’ basement and fight for a job. No one gets a “free ride.”

There is nothing better than a market-based solution to get positive results. These universities are not forced to take a student’s money, but if they choose to do so, this solution will rightly make them responsible and motivate them to adequately educate/train their students and assist them in getting jobs upon graduation.

Remember much of this money comes from loans provided by the federal government. Why should colleges get to take this “easy money” from the government, then let students stiff the taxpayers? Taxpayers are the ones whose tax money made the loan possible in the first place. They should be protected from losses by the colleges accepting these loans.

This solution would mean forcing colleges of all kinds to tailor their curriculum to “real world needs and demands.” At colleges from Colorado State to Harvard this would undoubtedly mean being truly helpful to their entering students by, for example, directing more of them to science and computer majors, than art history or “ethnic studies” majors.

This would not only benefit the students, but benefit America and the economy as a whole, as they would be training and educating students with skills that would actually help America grow and thrive. It would mean each college would have to create a truly robust job placement department, focused on real world needs and demands.

Think how totally depressing it must be for a bright, motivated young person to spend four or more years pursuing a degree that their ivory-towered instructors and so-called “guidance counselors” encouraged them to pursue, only to graduate with $100,000 or more in debt and find there are no jobs for what they have studied.

Is it any wonder one out of twelve college students have not only considered, but actually made a suicide plan?

Eliminating this terrible outcome for so many young people is perhaps just as important a reason to enact the market-based solution I’ve proposed, as saving America’s taxpayers from this exploding student loan disaster.

It’s time our higher educational institutions, controlled by corrupt progressive elites, are forced to focus on results, what is best for their students, and what is good for America, rather than simply continuing to feather their own cushy lifetime jobs and lifestyle- all provided by easy-to-get government loans that students aren’t paying back.

Oh and this would have one more real-world result: Professors who teach one or two courses a week and publish one book a year that no one reads (except their adoring mother) would no longer make $200,000 a year (let alone the $400,000 Senator Elizabeth Warren made at Harvard Law School). Colleges would have to do the same thing every small business owner does- live within their means, cut non-performing employees, lower salaries and reduce pensions.

Result?

*Tuitions would go down dramatically.

*Parents of students would have more money for retirement, instead of working until they die to pay off their kid’s student loan.

*Taxpayers would be off the hook for billions.

*Colleges would join the real world and make sure their customers (i.e. students) get their money's worth. Maybe the Harvards of the world would have to dip into their $15 billion endowment funds to pay back taxpayers, on behalf of their customers (students).

Everyone wins.

This is the simple, commonsense way we solve the impending student loan disaster. Brought to you by a successful small businessman, not a government bureaucrat.


TOPICS: Culture/Society; Editorial
KEYWORDS: studentloandebt
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To: 2ndDivisionVet

That’s not FAIR! What about all those professor ‘s that teach women’s studies or black history or transgender sexuality! What will they do when those courses and majors are eliminated!


41 posted on 11/18/2016 11:41:36 AM PST by D Rider
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To: Uncle Sham

Yep, peak higher edumCation.


42 posted on 11/18/2016 11:42:40 AM PST by Paladin2 (No spellcheck. It's too much work to undo the auto wrong word substitution on mobile devices.)
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To: Kaslin

As for education, the US government needs to let individual states do their work.

Except for collection of existing loans, the US government needs to get out of the student loan business.

The IRS might be permitted to collect and remit funds on federally outlined student/college financial agreements, but no more than say 1%/.2% of annual W-2/Schedule C/net 1099 income (for up to no more than 15 years) for any semester/monthly period of college attendance.


43 posted on 11/18/2016 11:49:16 AM PST by Brian Griffin
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To: mn-bush-man

The problem is neither is likely to happen. Universities would crumble without the scam cash flow they have used to build huge buildings, endowments, programs, payrolls, and on and on...


And the problem is?

Let them fail.

Universities have lost their way. They have forgotten their purpose, education. Instead, they feel their role is to reshape our society. So I shed no tears for them if they fail.

I would support Science and Engineering (and related subjects) but feel good studies need to pay their own way.


44 posted on 11/18/2016 11:50:56 AM PST by CIB-173RDABN
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To: Kaslin

Make everyone who got a degree in lesbian studies or law pay for someone with an engineering degree.


45 posted on 11/18/2016 12:03:08 PM PST by depressed in 06 (I'm going to have to come up with a new tag line.)
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To: gaijin

Agree!


46 posted on 11/18/2016 12:19:47 PM PST by boxlunch (Pray for Donald Trump's safety, for his family and cabinet. Make America Good Again!)
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To: Kaslin

Sue the universities for fraudulent misrepresentation to claw back the principal. Their graduates can’t even get a job with such worthless diploma mill degrees.


47 posted on 11/18/2016 12:21:46 PM PST by RegulatorCountry
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To: Kaslin

Govt holds much of theblame for allowing abuse of H1B visas as well as a flooding of the labor market with cheap illegal labor. Universities and liberal arts students the rest.


48 posted on 11/18/2016 12:25:38 PM PST by semaj (Audentes fortuna juvat: Fortune favors the bold. Be Bold FRiends.)
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To: Kaslin

We? It’s not OUR problem, it’s the idiots who spent $80k for a degree in basket weaving. Garnish pay, can’t be discharged in bankruptcy, no problem.


49 posted on 11/18/2016 12:55:12 PM PST by LambSlave
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To: Kaslin
I went to Community College and to a course in something that I could get a job in. Not spending 4 years on Women's Study, French Lit, etc, etc.

Ed

50 posted on 11/18/2016 12:55:37 PM PST by husky ed (FOX NEWS ALERT "Generalissimo Francisco Franco is still dead" THIS HAS BEEN A FOX NEWS ALERT)
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To: tumblindice; Kaslin
I paid mine off,

So did I and my guess is so did 9 out of 10. 

This article looks like little more than a rant about something everyoen likes to make things up.  Example, the article:  Student debt is now in excess of $1.2 trillion.  The number from ed.gov is $1.4T. 

The article also sad "Twenty-five percent of those with student debt are in delinquency or default", and Student Loan Hero says "Student loan delinquency rate of 11.1%" while the WSJ says "43% of the roughly 22 million Americans with federal student loans weren’t making payments".  Here's what the Dept. of Ed has:

There's a lot to this but the way everyone clings to their own reality system makes it hard to work out policy.

51 posted on 11/18/2016 12:58:44 PM PST by expat_panama
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To: Kaslin
Yes, you, your spouse and your 4-year-old child who has yet to start pre-school are each saddled with $1000 in student debt.

Why?

I didn't co-sign anything!

52 posted on 11/18/2016 3:47:16 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: gaijin
There should be no federallyTAXPAYER-backed student loans for such liberal arts Majors as sociology, English and anything ending with the word studies. ANYTHING!!!
53 posted on 11/18/2016 3:48:48 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Da Coyote
We need to sue all colleges that gave out useless degrees to those student stuckers.

Well; Trump sure put the REST of the 'colleges' on alert!

To the tune of $25,000,000!!!

54 posted on 11/18/2016 3:50:03 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: CIB-173RDABN

Trust me, CIB, I’m in 100% agreement with you. I wouldn’t shed a tear if the post secondary scam was ripped to shreds. I just don’t see it being allowed to happen.


55 posted on 11/18/2016 5:49:21 PM PST by mn-bush-man
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To: gaijin

I would agree that if you were in an engineering or medical type education program...I could see loaning some kid $25,000 a year and have a good feeling they would be able to pay it back.

With a liberal arts degree? The most that you should loan the kid $12,000 a year. I might even mandate that no loan should be approved for a first year liberal arts student, and force them into some community college low-cost deal.


56 posted on 11/18/2016 11:55:36 PM PST by pepsionice
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To: poinq
It should be the schools themselves.

No; IT SHOULD BE THE STUDENT!

57 posted on 11/19/2016 3:22:35 AM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: conejo99

Me, too. I feel like a real chump.


58 posted on 11/19/2016 8:59:48 AM PST by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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To: Da Coyote

Did you see there’s a liberal proposal to add A to STEM to make STEAM. Guess what the A is for, and be nice because it’s obvious.


59 posted on 11/19/2016 9:03:48 AM PST by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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To: MarDav

Similar situation here when my daughter went out of state to Penn State. Expensive and she qualified/got very little in scholarships. She got jammed into dorm with 7 other students, 4 who had a virtual free ride with all the scholarships and grants. All 4 were out within a year for various infractions mostly related to drunkenness and grades. I had to threaten the school housing to get my daughter out of that dorm environment and into a regular dorm room. She graduated 2nd in her STEM group (meteorology). I paid it off as quick as I could.


60 posted on 11/19/2016 9:20:14 AM PST by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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