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Message
Suggested reforms of the student loan system
Posted on 8/24/22 at 10:30 am
Posted on 8/24/22 at 10:30 am
No. 1 would be "no federally backed student loans" but since that is probably a non-starter, here are my suggestions:
1. Maximum loan amount is the average in-state tuition at state universities in the state. No reason to allow private schools to run up student loans with their exorbitant tuitions. You want to go to Tulane? Then you can only borrow the money it costs to go to LSU. You want to go out-of state? Then you can only borrow the money it costs for in-state. If you have to borrow money, you have no business at a private school or out-of-state in the first place.
2. No loans for living expenses. Tuition and fees only. Very few people live beyond driving distance to a university, even if it's a community college. If you don't have the money, live at home or work.
3. Graduation requirements for schools to be eligible for the federal loan program. If your graduation rate is below a certain threshold, then you are no longer eligible.
4. Rigid counseling for all student loan borrowers. Realistic future earning potential analysis to make them aware of how much they will make upon graduation.
There are many others to add, but these are the easy ones. Students are not being told "no" or "that's a bad decision." They are actually being encouraged to go to the most expensive and far away school as possible, with no concern for money. My children all attended LSU with TOPS and in-state tuition. They could have gone to a private school or out-of-state, but there was no reason to. If you can afford it, then more power to you. The government shouldn't be involved in your folly.
1. Maximum loan amount is the average in-state tuition at state universities in the state. No reason to allow private schools to run up student loans with their exorbitant tuitions. You want to go to Tulane? Then you can only borrow the money it costs to go to LSU. You want to go out-of state? Then you can only borrow the money it costs for in-state. If you have to borrow money, you have no business at a private school or out-of-state in the first place.
2. No loans for living expenses. Tuition and fees only. Very few people live beyond driving distance to a university, even if it's a community college. If you don't have the money, live at home or work.
3. Graduation requirements for schools to be eligible for the federal loan program. If your graduation rate is below a certain threshold, then you are no longer eligible.
4. Rigid counseling for all student loan borrowers. Realistic future earning potential analysis to make them aware of how much they will make upon graduation.
There are many others to add, but these are the easy ones. Students are not being told "no" or "that's a bad decision." They are actually being encouraged to go to the most expensive and far away school as possible, with no concern for money. My children all attended LSU with TOPS and in-state tuition. They could have gone to a private school or out-of-state, but there was no reason to. If you can afford it, then more power to you. The government shouldn't be involved in your folly.
12
Posted on 8/24/22 at 10:33 am to Bjorn Cyborg
quote:
No. 1 would be "no federally backed student loans"
Nothing else is needed
Posted on 8/24/22 at 10:36 am to Bjorn Cyborg
As someone who has worked 20+ years in higher education, I can tell you that Point 4, rigid counseling, is a MUST.
To take out 100k in loans, you have to sign a master note and watch a 10 minute video. I think that every semester you take out loans, you should be required to take a weekly 1 hour class with 80% required attendance.
Point 1 is interesting, but tying it to major would be better. Engineering majors can borrow more than art majors, for example. I would be fine with lower interest for honor graduates, etc., and forced privatization for those who do not graduate.
The millions of borrowers who refinanced right out of school with Sofi for a $250 VISA gift card are going to have a bad day when they realize they aren't eligible for any forgiveness, EVER.
To take out 100k in loans, you have to sign a master note and watch a 10 minute video. I think that every semester you take out loans, you should be required to take a weekly 1 hour class with 80% required attendance.
Point 1 is interesting, but tying it to major would be better. Engineering majors can borrow more than art majors, for example. I would be fine with lower interest for honor graduates, etc., and forced privatization for those who do not graduate.
The millions of borrowers who refinanced right out of school with Sofi for a $250 VISA gift card are going to have a bad day when they realize they aren't eligible for any forgiveness, EVER.
Posted on 8/24/22 at 10:41 am to Bjorn Cyborg
They need to place valuations on degrees. There is no reason someone should go into $100k in debt over a degree that has an average earning potential of $50k or a beginning salary expectation of $40k.
Right now they write you a blank check for gender studies or art degrees.
If you want to "follow your dream" that much, figure out the financial side of it yourself.
Right now they write you a blank check for gender studies or art degrees.
If you want to "follow your dream" that much, figure out the financial side of it yourself.
Posted on 8/24/22 at 10:43 am to anc
quote:
As someone who has worked 20+ years in higher education
I have been in the academy for the same length of time and I can tell you I see the cost difference between when I was in college and students today. The student loan system is horrible, it is almost as bad as credit cards. But I still contend the biggest factor in ballooning debt is not what degrees students choose versus potential earnings, its the fact that funding of higher education has taken a nose dive over 20 years and regulations have continuously increased.
Posted on 8/24/22 at 10:44 am to Bjorn Cyborg
quote:
3. Graduation requirements for schools to be eligible for the federal loan program. If your graduation rate is below a certain threshold, then you are no longer eligible.
This one is a bit sticky. There are good degree plans such as pharmacology that are cranking out HUGE numbers of graduates which waters down the market and drives the value of the market salaries down. This would only incentivize them to pass people not even trying, kinda like high school.
Posted on 8/24/22 at 10:45 am to FreddieMac
Ban federally backed student loans … problem solved, and tuition rates immediately fall
Posted on 8/24/22 at 10:47 am to FreddieMac
Some people don't want to hear it, but 80 million dollar lazy rivers are the problem.
When I was getting my Ph.D., I spent three weeks touring European universities. The facilities at average American universities could not be fathomed.
Higher education is going to get a big wake up call. 11 million less high school graduates expected in 2025 than there was in 2010. More competition for less students.
I'm actually considering leaving the field.
When I was getting my Ph.D., I spent three weeks touring European universities. The facilities at average American universities could not be fathomed.
Higher education is going to get a big wake up call. 11 million less high school graduates expected in 2025 than there was in 2010. More competition for less students.
I'm actually considering leaving the field.
This post was edited on 8/24/22 at 10:49 am
Posted on 8/24/22 at 10:47 am to Bjorn Cyborg
Make loans for trade schools, not colleges and universities.
Upon graduation, have the business where the graduate is employed to pay 1/2 and the individual to pay 1/2. Let the business keep the records and make the payment to the govt.
Upon graduation, have the business where the graduate is employed to pay 1/2 and the individual to pay 1/2. Let the business keep the records and make the payment to the govt.
Posted on 8/24/22 at 10:47 am to anc
I think the stats in the field your are majoring in should be a must. I was misled about the available jobs in my field because they counted every job you got after your degree to put it in the 90th percentile.
Posted on 8/24/22 at 10:50 am to Bjorn Cyborg
quote:
Maximum loan amount is the average in-state tuition at state universities in the state
Love this.
quote:
No loans for living expenses.
I see your point, but I prefer some type inflation adjusted cap.
quote:
Graduation requirements for schools to be eligible for the federal loan program. If your graduation rate is below a certain threshold, then you are no longer eligible.
How is this not already a thing?
quote:
Rigid counseling for all student loan borrowers
Always a good idea. Add it to the pile of topics that need to be taught in a home economics high school class.
Posted on 8/24/22 at 10:56 am to Bjorn Cyborg
The schools themselves need to have skin in the game.
Posted on 8/24/22 at 11:05 am to VADawg
quote:
The schools themselves need to have skin in the game.
I like that a lot too, but there can be conflicts of interest. And shady colleges could manipulate the system for short-term gain.
Posted on 8/24/22 at 11:07 am to Wtodd
quote:Does anyone ever wonder why tuition and fees are so drastically high at both private and public American colleges and universities? It's because it's free money like low-hanging fruit for all these institutions. The higher tuition, the more pell grant and student loan money the average student is eligible to receive. This racket has been going strong for about 70 or so years now. It's the main reason for increasing tuition because they want all students to be eligible for the most American taxpayer-funded aid possible. If all this shite came to an end all these parasite classes like "women's studies" and "critical race theory" would come to an end and tuition would come down drastically.
No. 1 would be "no federally backed student loans"
Nothing else is needed
The whole system is rotten to the core.
Posted on 8/24/22 at 11:16 am to Bjorn Cyborg
quote:
If you have to borrow money, you have no business at a private school or out-of-state in the first place.
I disagree here, but it’s a friggin loan- you need to understand what you’re getting into and REPAY it.
Posted on 8/24/22 at 11:17 am to Bjorn Cyborg
make it free? each state depending on size should have at min of 2 universities offer free education to students that maintain a 3.0. If you want to attend a private university then you borrow the money and attend.
Posted on 8/24/22 at 11:19 am to hawkeye007
quote:Who is going to teach? Where are they going to teach?
make it free? each state depending on size should have at min of 2 universities offer free education to students that maintain a 3.0.
Posted on 8/24/22 at 11:24 am to Bjorn Cyborg
How about when you apply for a student loan you treat it similar to how a small business owner would treat applying for a business loan?
Show up with a plan of what you’re going to study, some research on short/long-term employment options once the degree is complete, and explain how you can realistically expect to pay back what you’re attempting to borrow. You may required to show HS transcripts/test scores as those metrics could be used by the lending institution to make a loan decision.
Show up with a plan of what you’re going to study, some research on short/long-term employment options once the degree is complete, and explain how you can realistically expect to pay back what you’re attempting to borrow. You may required to show HS transcripts/test scores as those metrics could be used by the lending institution to make a loan decision.
This post was edited on 8/24/22 at 11:26 am
Posted on 8/24/22 at 11:43 am to Taxing Authority
take Louisiana for example. we have way to many state funded colleges. LA Tech, LSU, UNO make them free for in state students. Shut down funding for all the rest of the state schools and i bet you can fund the education of students at these 3 universities.
Posted on 8/24/22 at 11:46 am to hawkeye007
At least stop feeding degree programs centered around the grievance industry.
That’s a good first step.
That’s a good first step.
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