I have to admit I have a little bit of a liberal streak in me, especially in
education matters, but in this case not seeing where the colleges are
responsible. This problem comes from two primary sources; those who get the
loans (students) and the government that made these loans so easily available.
Like said above, I think on-line choices will bring the market back to reality,
people won't put up with this forever and smart people will figure this
Bankruptcy is a longstanding, free-market principle that is even demanded in the
US Constitution. There was never a viable reason for removing this protections,
and given that today, the entire lending system-federal government chief among
them- make a profit- not a loss- on defaulted student loans. This
is a defining hallmark of a predatory lending system, and by supporting the
continued absence of bankruptcy protections from student loans, you are
supporting, enabling, the perpetuation and growth of a big government
Bad decisions always seem to be someone else's fault.
With online courses college education with innovation should be getting cheaper,
not having cost explode. Colleges couldn't charge so much if the student
loan system wasn't so easy to qualify to get a boatload of money that for
profit colleges and others figured out they could get the money by often selling
the students a pipe dream that all majors are equal and by breaking the law and
in some instances paying recruiters to find a warm body. Spend 30k to be an
M.A. or phlebotomist, no problem and will tack on 10k and you can be a pharmacy
tech too. I don't think students should be allowed to declare
bankruptcy for at least 25 years on their student loans unless there is
extenuating circumstances like getting on SSDI for major medical, even if they
pay $10 per month the rest of their lives.
Article title: "Allow student loan bankruptcies, but hold colleges
accountable?"Hold the colleges accountable?Why?, the
student signs the loan, NOT the college.This smacks of (more)
liberal thinking run amok. "It isn't my fault" is the very essence
of current liberal philosophy.
Dumb idea – if the student knows they can get the debt discharged in
bankruptcy, they have every incentive to eschew the lower priced option and go
for the high-priced, more elite institution.
The colleges should focus on quality teaching and showing up for class. Maybe
students should be allowed to charge the colleges when a teacher does not show
up. This has occurred many times with our children.Students need to
know how to plan college expenses just like they would in life after moving out
on their own. This is the responsibility of the parents, not the colleges. Scholarships, government and charity welfare (such as pell grants, food,
medical etc) is available. This all requires homework. It amazes me how
students can excel at game playing and computers, yet they are unable to figure
out how to go to school on a very low income when so much help is available.
How are they going to survive life after college?When a student has
disabilities, yes they need personal help. If they are too disabled to attend
college then they should seek alternative ways to survive life. The schools
should not be financially punished for a students decision. Private Schools have
retention quotas they need to keep up to stay in business. They would be
foolish to allow low achievers into their programs.
Education and learning are not necessarily related to increase in income. If we
followed this association, only schools offering engineering would be allowed to
continue. Liberal arts majors that include "x-race or y-culture
studies" that "reduce" earning capacity because they otherwise cause
the attendee to look like a flake, would also have to go.In truth, the
educational model is changing in favor of online education, and when the tide
has completely receeded, there will be far less brick-and-mortar educational
facilities, and the epidemic of wild in-residence loans will subside.
How about educating students in high school about personal finance so they can
make intelligent choices.
@dave4197I understand the frustration people have with debt that
they incur. These are college and university students. Some of the best and
brightest right? Yet they can't figure out interest rates and how to spend
money? The student loans are not used only for education. Many finance their
cars, trips, parties etc on student loans. That is not the fault of the
University.If they paid attention they would be fine. Take a loan
out only to cover your tuition and books. You can keep costs down to $5,000 a
semester. If they worked a part time job to pay for rent and food and tuition.
They could knock the loan down to $1000 or less each semester. Piece of cake.Don't burden my tuition because kids can't figure out how to
be frugal. At what point are these adults will act like adults and think things
through? Where has personal responsibility gone to?The schools
should give all of the data they have, concerning the actual pay for each
degree. Not some arbitrary number pulled from the highest cost of living states.
But I figured that out as an undergrad.
Finally a bit of good news. But there are those who would bring back a
Here is a simple solution. If any school, private or public, has an overall
student loan default rate above 15%-20%, the school should no longer be able to
accept any form of federal student loan money.
Take a closer look at college expenses. Admin salaries are way out of any
sensible range, many leaders are in the $300k+ range, they're based on
infinite income to the college from easy to guarantee student loans,
they're based on what admin's can get, they're not based on any
sort of community income average. It's about greed and what you can get
away with. Colleges and universities absolutely must be held to pay for
student loans on students' backs who cannot get jobs or otherwise pay back
loans. The taxpayer should be the very last last resort, after the
college taps its wealthy alums and corporate sponsors. Tap athletic sponsors
too. I have to disagree with Liberal Ted about a student's choice to
take a loan, my experience is students don't have a clue about loan
burdens. In contrast they are led thru easy qualification for loans. Have 5 kids, 4 thru college and working, I'm helping them pay off their
loans now going on 15 years for the oldest.
@ Mom of 8If you have 8 kids. I'm sure you'll qualify for
pell grants. They will give your kids money to attend college. Buy your books
online and shop around. Don't waste time taking classes that you don't
need. Figure out where you are going first, that will save you a lot of money.
Go to school close to home, if I could have lived with my parents that would
have saved me a lot of time and work. Have a cheap car, don't bother with a
tv, spend the weekends in the library, take 3 classes and work to pay.College isn't just about partying or hanging out. The main focus is to
get that degree and move on. It's a tough balancing act. But, hopefully
kids learn in their youth (something parents and public education has failed at
doing) that you have to work for what you want. Even with good grades, you may
not be accepted into a program. Keep your options open.
@ Mom of 8- Finished my undergrad in 2005. It wasn't that long ago. Working
on my Masters and I am paying as I go. No student loans. That is in addition to
working full time and running a business.There is nothing I have
done, that anyone else couldn't have done themselves. It's a matter of
actually going out and putting in the long hours of work and study. Yes
it's hard to give up playing video games and going to the mall with friends
and whatever other nonsense concerts etc people like to go to. But, if you want
to make it debt free you can.If the students are clueless going into
college or a university of what the value of the education is or will be. It
sounds like their parents need to explain that a ceramic arts, psychology,
sociology, English, communication degrees will not pay the same as an engineer
or doctor. Schools should give the students the tools to make an educated
decision. Such as actual pay rather than taking the top 10% in each field and
hinting that is the way for everyone.
Liberal Ted, I'd be interested to know when you went to college. What it
cost in the 1970s and 1980s is nothing to what it costs now. Students have no clue if, as they're attending college, they'll land
a job that will allow them to repay the loan. Thirty years ago the assumption
was that the degree was a fast-track to financial security. Now, a
bachelor's degree earns you $30k if you're lucky, and only in about
two decades will you be making enough to afford both a house and the student
loan payment.Colleges have exploded their costs because they know
naive students can get loans to cover their expenses. Look at the building
projects on campuses now a days. They border on the luxurious. It's an out-of-control mess, and universities should stop using students
and start serving them.
Colleges should have some skin in the game. However, the student is the one who
chooses to take out a loan to begin with. I chose to pay as I went through the
University. Graduated debt free. I don't think the school should be
responsible for students who take out loans to buy a car, fast food, gaming
systems, TV's, trips etc. Ultimately it will be the other students who get
to cover irresponsible students.
I agree that colleges need "some skin in the game." They do need to
be held accountable for certain things. They might want to address the issue
of why college costs so much in the first place. The teachers aren't
getting the income (mostly.) There are a lot of adjunct professors out there.
Is there too much administrative cost? Not sure.