Posted on 03/19/2019 5:35:53 AM PDT by reaganaut1
WASHINGTON—The White House is weighing a measure that would require colleges and universities to take a financial stake in their students’ ability to repay government loans, an effort that could squeeze loan availability to students and reduce defaults.
For several months, Trump administration officials have been discussing enacting such a mechanism or making a push for one in Congress as part of a broader effort to combat rising college costs.
In the administration’s budget proposal released Monday, officials made brief mention of a “request to create an educational finance system that requires postsecondary institutions that accept taxpayer funds to have skin in the game through a student loan risk-sharing program.”
Such a proposal could be included in a coming executive order addressing higher education, several officials said. A draft of the order isn’t final and the specifics of exactly how a skin-in-the-game provision would work haven’t been laid out. It also isn’t clear whether the White House will back an administration proposal or urge Congress to take one up.
The order the White House is preparing, expected in coming weeks and led by the president’s daughter Ivanka Trump, will likely touch on several hot-button issues in higher education, including a possible provision tying federal research dollars to rules about free speech on campuses, these people said.
Leaders on the Senate and House education committees are also currently negotiating a possible reauthorization of the Higher Education Act this year, the sweeping 1965 law that governs higher education and student loans. Should a risk-sharing proposal come up in Congress, it would likely be included in a larger reauthorization package.
Democrats are divided on risk-sharing proposals. In 2017, several senators, including Elizabeth Warren sponsored a “risk-sharing” bill that would have required postsecondary schools to pay a percentage of their borrowers’ defaulted loans.
(Excerpt) Read more at wsj.com ...
ABOUT TIME!
Ending government backed loans will drop the prices fast
So will taking the costs of the student loan debacle out of the hides of the schools that benefited from them.
Let them sell equipment, and property and empty endowments and pay off the loans.
I am done with the elite leftists gouging the people.
AND I am tired of their choir whining that the wrongness it somehow the people’s fault. You know when a few people make a “mistake” it is their fault. When hundreds of thousands of people are marketed and sold a bill of goods in a concerted effort to bilk them and take their money, it goes beyond a mistake, it is a scam or racket.
Tucker did a good piece on this today. He called universities “hedge funds with buildings”. Lol.
Ahhh...a different kind of participation award.
Excellent idea which strongly hints to the college.
Give this student a marketable education and degree or you are on the hook for the loan.
Indeed! How did we get from the National Defense Education Act, which covered STEM education and thus had a Constitutional basis - National Defense - to student loans for womens studies and basket-weaving, which had NO Constitutional basis?
Hey ivy league schools, nice endowments you have there, it would terrible if something happened to them....
I hope this gets moving but the education industry is too far entrenched to make this happen IMO. Short of surrounding them and bombarding them with 105 barrages, they will withstand the battle.
Whatever changes they make, there is still $1.5 T in loans outstanding with something like 20% in default.
“Let them sell equipment, and property and empty endowments and pay off the loans.”
They can also get rid of all those liberal non-life learning, non-essential curriculums that have provide no value to students.
tying federal research dollars to rules about free speech on campuses
They will not like that!
“Let them sell equipment, and property and empty endowments and pay off the loans.”
And force them to RIF “professors” who “teach subjects” that have no useful purpose in life. Particular Gender and Ethnic “Studies.” Those subjects merely spawn troublemakers for society.
You can say that again and again!
What a great accomplishment that would be! Stop with the weird subject degrees and stick to things that will help kids actually make a living. I talk to people who are buried under student debt and could never get a job using their degree.
Student loans should be only for those who would actually make a better living with their degree and not just anyone who applies.
Because in the early 21st Century, the idea of people having the right to free speech on campuses is a "hot-button" issue.
End all college loans for any degree that ends in “studies.” You can’t pay off loans waiting tables or cleaning toilets.
-—...that requires postsecondary institutions that accept taxpayer funds to have skin in the game...-—
Not opposed to that, but since Washington is on this line of thinking, why not force Congress and their staff use 0bamacare like the rest of us?
After all, the wet noodle Republicans crawled into a corner in a fetal position when it came time to repeal it, so this is the least they can do. Rumor has it an EO may get the job done.
That’s right - make Congress and their staff subject to the nonsense they put us through.
We’ll see major changes in how this country operates real fast.
A part of this problem is the money in college sports.
I think getting rid of those programs and their instructors will be a byproduct of forcing them to pay.
The taxpayers (that is, the feds) just need to get out of the student loan (and grant) business. Period.
Let those without the funding or exceptional potential to get funding elsewhere work their way through online or community colleges, at least up to the point where they can finish at a state school or whatever.
Let the private schools adjust to that new reality and higher ed might begin to improve again.
Whatever changes they make, there is still $1.5 T in loans outstanding with something like 20% in default.
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I am sure that between endowments and assets and real estate, the education establishment can make up that number.
If not, break into the NEA coffers and the retirement funds of all teachers.
Break the establishment.
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