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Writer's pictureLucian@going2paris.net

Hold Colleges Responsible for Borrowers Who Don’t Make Payments


HHI

April 30, 2022


Come on, man. I feel for those who have student loans they can’t repay. But I don’t want to be the one paying off the loans.


The above data is from 2021.


Isn‘t the straight forward answer to make it the institutions’ problem? I like what this article suggests:


In the current higher education financial system, colleges have to meet very minimal standards to keep receiving federal student loan money.


If colleges were on the hook for debt that didn’t get repaid, they would have a huge incentive to help students find jobs and to make sure they were prepared as they entered the workforce. Such a system might also be the end of predatory for-profit colleges.


If colleges had skin in the game, the price of school might more accurately reflect the value of the degree. It would be a win for all students.

After a week of nothing but blue skies (“I can see clearly now”), it is going to be partly sunny here today. What am I to do!



It really is a treat to cook breakfast.




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tommasopacelli
Apr 30, 2022

I agree in general that a society should not have to pay for the choices of individuals. Going to college is a individual's choice. Picking a major is an individual's choice. Borrowing money to pay for college is a individual's choice. Holding a college accountable for those individual's choices is akin to holding Ford accountable for paying off my choice to borrow money to buy their vehicle imo. With the talk about equity, how would those individuals who chose to pay for college, and/or college loans be compensated - should the colleges they attended be required to reimburse them?

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Lucian@going2paris.net
Lucian@going2paris.net
Apr 30, 2022
Replying to

Thanks for the comment Tom. 😁 1. This is where the details matter. No student should have ALL of their loans forgiven. “Someone” is going to have to figure out what the student can “afford.” Those two words in italics are challenges. 2. The school was enriched by charging “too much.” Perhaps they are required to step in the shoes of the borrower to service the debt that is assigned to them. 3. For those “for profit” schools that have closed, federal/state government should pursue any avenue they can to hold people who ran those schools accountable. Fraud?

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