re: FED student loans: why allow schools to charge out of state tuition for non residents?

I’ve said for years that the max federal student loan should be the average public school cost of attendance for in-state tuition in that state.

Out of state tuition could not be borrowed.

Want to go to Tulane? You can borrow what it costs to go to LSU. The difference either has to be paid out of pocket or through personally guaranteed loans, or grants/scholarships etc.

quote:

---

The flagship universities get a VERY LARGE amount of their capital funding via donors, not taxes.

---

Well that’s just not true.

Hell, the sum of what donors have given, which has been invested and gaining compound interest for decades....couldn’t run the main LSU campus for more than 2 years.

~80% of LSU’s funding comes from current student tuition and fees.

And almost 100% of what’s left comes from the state.

LSU made a mint and a half off my Texas butt that’s for sure. My tuition was roughly double what a LA resident was smh

quote:

---

Any loan used for a university education must be co-signed by that university.

---

I don't understand this thought process. Somebody give me a few clues, please.

Universities are selling an education. If you can't afford it, don't go to college. If you decide to borrow money, you are responsible for your debt. Why should the University co-sign? They aren't responsible for your failure to pay your debts.

Do builders co-sign mortgages? Do auto dealerships co-sign car notes? Why should Universities co-sign a students loans? Hell, an education can't be repossessed.

Is it just because Tucker Carlson thinks it's fair?

quote:

---

Universities are selling an education. If you can't afford it, don't go to college. If you decide to borrow money, you are responsible for your debt. Why should the University co-sign? They aren't responsible for your failure to pay your debts.

Do builders co-sign mortgages? Do auto dealerships co-sign car notes? Why should Universities co-sign a students loans? Hell, an education can't be repossessed

---

Valid point but I do think universities have some responsibility in the process. I think to some degree they have exploited many teenagers.

The FED loans should be based on your degree and potential earnings based on the current market.

quote:

---

FED student loans: why allow schools to charge out of state tuition for non residents?

---

Because their funding is predominately state sourced. Some states input far more than others.

quote:

---

I’m largely unsympathetic. I see my kids’ friends making just idiotic decisions (skipping a $20k/yr scholarship at Tulsa because “the campus is gross” and going to Baylor with almost no scholarship, going to Miami with a $10k scholarship when Northwestern offered a $25k scholarship and in-state schools were offering full-rides). I DGAF what happens to those kids’. But I’m getting old and crotchety.

---

This all day long.

These kids are a product of the "It's someone else's fault" generation.

However I have to care about it because they, and the ignorant politicians that think the way to solve the problem is to "Poof" wave the magic wand and all the student debt is erased are going to wreck the economy, just like they wrecked it in the 90's with the "everyone deserves a house" so if you're not giving out home loans you'll get fired BS.

quote:

---

If the government stopped idiotically backing student loans it would fix itself.

---

All of this. I regret that I have only one upvote to give.

I would also add that the Feds shouldn't be backing any private loans at all. When there is a fed backed safety net for private money loans, banks tend to loosen restrictions because of it. Make the banks responsible for losses due to delinquent borrowers and private loan bubbles (college/mortgages) go away for the most part.

quote:

---

Do builders co-sign mortgages? Do auto dealerships co-sign car notes?

---

These are tangible goods. If a house isn’t worth the loan applied for, the loan doesn’t happen.

A degree in Art History is “worth” far less than a degree in Engineering. But they’re viewed the same in the loan process. One of those is going to be a lot harder to repay.