Put education decisions back in the power of the free market(private lenders). We need students to have to prove the viability of their degrees to lenders instead of just getting free money that will inevitably trap them.
This will also lower the price of colleges overall, especially the bloated DEI departments.
Also take away tax exempt status of these schools. They are 100% for profit institutions.
I’d make the loan guarantor the university. They have too much financial incentive to push loans on students that will never be able to pay them back.
Federal student loans are an unfair burden on the public at large. They incentivize uncontrolled tuition costs and funnel money from blue collar workers to universities with billions in endowments.
audit the universities and impose hefty fines for tuition that is going towards things like football stadiums and unnecessary administrators and chairmen who dont even show up on campus.
football budget should be based purely on football revenue and donations.
also make schools refund students for classes that were unnecessary to their subject field. making the 3 year degree the new 4 year degree.
lets get back to making school about school.
instead of bandaiding the problem with loan cancelations , we need to fix the problems and hold colleges accountable
I think this would create a scenario where too many people would game the system. Unless they have to forfit the degree they earned and ability to use it on a resume along with forgiveness of the debtvia bankruptcy.
See my proposal to end the non-dischargability of student loan debt (if the mods approve it) I have actually discussed it with JD and he thinks it makes sense!
If student loans are forgiven it has to be a one time event with a line in the sand. The recent lending practices that caused this mess were predatory. Therefore, set a flat rate repayment percentage (say 20%). If you borrowed 40k then you owe back 48k and no more. If you have already paid back the 48k or more than that amount, your loan is forgiven and the loan provider can suck it up. Likewise, you lose any overage. If you haven’t yet paid the 48k, then you pay up to that amount and no more. That way everyone actually pays back their loan. They just don’t pay back all of that predatory interest.
I think the issue is the government is creating a problem it will never be able to fix. We can try to chase them down for wasting the money. Or we can stop subsiding education that doesn’t pay for itself.
The proof this can work is that some trade schools have begun to offer reduced tuition up front, with the rest being due only after they get a salary.
I think we should cut taxes instead on people who are students/low income.
Like no income tax at all on people in school.
No property taxes for people under a certain income etc.
The no tax on tips of course…
It is also unconstitutional for the government to do federal student loans. We need to cancel all profitable interest on loans, have people repay the rest, and stop giving the loans for the future. Tuition costs will drop instantly
YES! Universities are nothing more than tax free hedge funds. Below are the endowments of the top 5 universities as of Sept 2024 (Top 5 Largest University Endowments)
Harvard - $53.1 Billion
University of Texas - $44.9 Billion
Yale - $40.7 Billion
Stanford - $36.4 Billion
Princeton - $33.4 Billion
If the argument is “billionaires should pay their fair share” then here they are. If universities were to guarantee their loans, the American tax payer wouldn’t be held liable for funding useless degree programs. With that said, universities would be hesitant to guarantee loans for useless degree programs, possibly trimming their program offerings or adding trade programs that actually benefit the student and society. Additionally, we would see tuition rates decline to an affordable level for all and produce students that are actually productive members of society.
It’s all about skin in the game. Banks and institutions should share that load. Gives the banks incentive to make good loans and make the institutions compete as tuition rates come down. No more free money on the backs of kids.
Ending general education class requirements would help this, as well. Ex: if a student is attending college to major in a science field, he or she shouldn’t also be forced to take a random art class or in order to graduate.
General education is for high school. College should be for specialized education with “electives” being optional and not mandatory. Students wouldn’t have to attend for as long (and take out as much in loans) if it was set up this way.
I think this may be a solution, if you believe like me that education is absolutely critical for the future of our country, but can’t stand the education cartels nor the wokism:
Since the government took over student loans and there is no competition for the loan. The interest rates are high. If the government insist on owning the loans make them interest free or low interest. Or allow companies to compete for the loans to keep interest down. Once upon a time you could have on the job training in the medical field and not have a ton of debt now you are forced to get higher and higher level degrees. Being 40-50 and paying on loans until past retirement age due to interest is insane.
my wife was told by a University “Financial” councilor that she should not have a job while going to school, she should take out loans to cover her living costs and tuition. Good thing she was smart enough not to listen to these knuckle heads. These loans are “Predatory” by nature and should not be allowed to happen any longer.