Posted on 09/16/2020 7:00:23 AM PDT by karpov
A recent defense of student loans by Jason Delisle of the American Enterprise Institute is, uncharacteristically for him, off-base. He defends the federal student loan program, which he correctly notes is criticized by those on the left (college should be free) as well as on the right (student loan programs have raised the price of education).
Delisle cites research showing that students borrowing aggressively tend to get better grades, graduate more successfully from college, and get better jobs, promoting not only their own well-being, but that of society.
While in a longer essay I probably would disagree somewhat as to the reliability of the research that Delisle cites, my much more important point is that Delisle does not see the forest for the trees.
Specifically, he ignores a fundamental problem that student loans have helped create: Too many people are getting overly expensive college degrees, while many others drop out before degree completion or end up underemployed, doing jobs historically done quite competently by high school graduates.
Do you really need a college degree to drive a taxi or be a bartender? Many doing those things today have degrees. Are taxi rides faster and safer, or drinks tastier because they are mixed by college graduates? I think not.
A student taking a solid course in the principles of economics by the third or fourth week, if not earlier, should be able to manipulate demand curves to discover that federal student loan programs serve to increase college attendance, one of their goals.
When federal student loans are readily available, the number of students wanting to go to college rises (demand for higher education increases), pushing up both price (college tuition fees) and attendance. If the demand increase induces a supply response, that would increase enrollments even more.
(Excerpt) Read more at jamesgmartin.center ...
The real problem with the student loan program is that they tend to fun anti-American indoctrination in a worse-than-useless form of so-called liberal arts.
The federal government should only subsidize loans for students pursuing STEM education, and nothing else.
The whole student loan federal guarantee needs to be rolled back and, ultimately, eliminated. In the digital age, the “wholesale” cost of providing students with a quality education is very, VERY low. The problem is the whole “college experience” has become a cultural thing. If we were just trying to educate in the classes that reward with credits, it doesn’t cost much to do these days.
But we have a lot of americans under 30 that have sold themselves into indentured slavery via student loans. That has to be fixed, at least to some degree. They’ll elect socialist just to get out from under it.
it was fine when it was run by banks for the most part, but from the second the federal government took over it spun out of control.
The federal government needs to get out of the student loan business altogether. How’s this for a common sense, simple idea: people who want to pursue higher education can figure out for themselves how to finance their endeavor. There are lots of possibilities out there but the federal government should not be one of them.
10th Amendment should demand that any federal involvement whatsoever be eliminated ... ditto with the department of education (except for DC or the Territories).
The purpose of student loans is not education. The purpose is to fund government retirement programs. This is why they give loans to studies degrees. This is why student loans can’t be forgiven in bankruptcy. This is why private financial institutions are forbidden to write student loans. Until we do away with the driving function, gold plated government retirement plans, we can’t discuss changes to student loans.
it was fine when it was run by banks for the most part, but from the second the federal government took over it spun out of control.
Restructure and have the college finance it.
With federal funding of colleges enabling Left wing indoctrination to flourish it was inevitable it would spiral out of control even then as universities made more and more indoctrination course loads mandatory and professors used them to sell overpriced books no one would ever otherwise buy or read.
Logically, the universities should provide the loans.
Student loans, if they continue to exist at all, should only be given to individuals who major in STEM fields or medicine.
Loans should be made by the colleges; no federal loans.
Absolutely. If a college or university feels that a particular person is worthy of a degree from their school, then let the school fund the cost of the degree upon such terms as they feel just whether by loan, grant, scholarship, work study, etc.
Eliminate them.
FedGov has NO business in the student loan business.
Back after Sputnik, the Federal Government created the National Defense Student Loan program for students studying engineering, and the hard sciences (math, physics, chemistry, and biology). I had one in engineering and worked in engineering field for 49 years, and 11 months before retiring. I also was in the Army and army Reserve for 28 years all doing engineering work.
If I had stopped studying engineering and changed to business, I would not have been able to get additional funds. I only borrowed for two years and then summer employment in engineering and part time work at college working in research as a student helped fund the last two years.
Even more important, destroy the power of the Supreme Court’s Griggs v. Duke Power Co. decision. That decision declared intelligence tests as part of the hiring process to be discriminatory, so companies and HR departments instead fell back on a college degree as an indication of “intelligence”.
With degrees becoming a de facto mandatory part of getting a decent job, demand rose, and the colleges decided to lever their new monopoly status via ever-increasing tuition and fees.
STEM degrees tend to do better. My wife taught a Chinese exchange student for a couple of years in high school (he took several science and math classes she taught.) He went on to finish a 4 year Computer Science degree in 2 years. He came back to visit and thank my wife for his rigorous training in high school. He said his American counterparts in college did not have the work ethic, so the courses were easier than expected.
The university could then offer a free eduction to everyone.
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