Author Topic: College Loan Debt  (Read 719 times)

Seriati

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College Loan Debt
« on: March 21, 2019, 11:23:01 AM »
Looks as if the Trump administration is going to get serious about college loan debt.  The latest proposals seem to be a requirement that colleges provide data on default rates and debt burdens by major (which would help students realize what they are getting into) and putting some of the risk onto the institutions themselves. 

As of now, colleges get paid (and the debt can't be removed through bankruptcy) regardless of whether the education they provide leads to any better results.  It's an interesting question, whether they should share in the risk of the default (right now its completely between the student and the government, yet the college has more control over the educational quality than either of them).  Hopefully the statistics will focus any such policies on institutions where a significant portion of their degree recipients have issues, and not act as a blanket guaranty for every student regardless of their own relative efforts.

So those on the left, seems like a lot of reasonable ground here for policies that you should like.  Is that going to be the case?  Or is this another area for Resistnace?  Or is there more context?

TheDrake

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Re: College Loan Debt
« Reply #1 on: March 21, 2019, 11:48:55 AM »
I'm somewhat ambivalent about this. I'm certainly not up in arms about it. The government should make college accessible, but not every college. This might push more students into perfectly good state schools and universities. It also might cause more problems for states that don't subsidize college. It also makes it less feasible for a student to attend an out-of-state university.

The limits are interesting. They are capping at $57k lifetime. I'm having a hard time tracking down the median tuition for public university in-state and out-of-state. I'd like to know if this is going to fall unevenly

Some of the simplification in the process seems like an unequivocally good thing. Removing the preference and recognition for public service seems like a bad thing. Breaking things down by type of degree could give too much power over what people choose to do for a living. Earlier forgiveness seems good.

Currently, the University of NH (my undergrad) is 18K (the maximum). This is because NH has no state income or sales tax. Such a policy could leave NH high school students with little choice. Berkeley, UVM - out of state is 40K (again on the high side).

It definitely could have an uneven impact on schools with higher operational costs for better facilities or services. We might see the "southwest airlines" approach to college, and that might not be entirely bad.

I'd have to look a lot more carefully to get to a thumb-up, thumb-down.

ScottF

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Re: College Loan Debt
« Reply #2 on: March 22, 2019, 06:10:02 PM »
This feels like addressing a symptom while ignoring the cause. College tuition has risen over 200% since the late 80's. Don’t even get me started on those schools that are sitting on billions of dollars in endowments. Malcolm Gladwell addressed the topic nicely in his revisionist history podcast.