The ivies already have that money in cash. Debt relief has nothing to do with them.
colleges know they can easily increase prices every year and the students donāt have a way to opt out, especially if the diploma is somewhat prestigious. it even makes sense to do one-year masters programs at $50k, because you make it back in 4-5 years. should those students have had the opportunity to attend college without debt? yes they should have. is that the best use of federal $50k? no. the $50k sends a kid who would otherwise not make it to college at all, through at least two years in state school.
donāt get me started on the scam that is in early decision. the colleges have made sure that 1) student didnāt apply to any other school, and/or is obligated to attend their ED choice, and 2) student would have to accept any lowball scholarship/grant offer.
i totally agree. thatās whose debt they should absolutely forgive, and if they have to nix top tier universities from loan amnesty to make it appear that they are sticking it to the elites, i would snapcall.
Youāre conflating debt relief with free college in the future. Again, these people have already gone through the 4 years of predatory behavior from their schools. The schools have the cash. Crafting the program such that you donāt give the private school grad 150k in loan forgiveness doesnāt do anything to help a hypothetical student go to state school. The stuff youāre describing is exactly the reason why expensive private schools should be included in any debt relief program.
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iām simply talking about prioritizing whose loans absolutely have to be in this loan forgiveness program. i support forgiveness for all loans, but iām ok with a compromise ( if it has to be made ) of nixing .3% of all loans that attended ivies, or capping 5% of all loans that attended other pretentious schools. iām fine with that compromise because tuition inflation is an absolute scam executed by school admissions, who essentially sold to the debt to loan processors years ago and are now legally free and clear to continue the scam on the next generation.
in the broader economic view, yes i want free college for everyone, but it needs to come with price negotiating powers, otherwise harvard and cornell are just pulling the same ballooning payments scam on the government invoice. the mechanism i favor is making public schools free, which would force harvard to justify its higher cost compared to umass or whatever. but thatās obviously a very big leap from the system we have now. so for that reason, i think a feasible form of debt-free college is retroactive loan forgiveness which pays off 100% of state college cost, without forgiving really outrageous loans. an extra wrinkle is that even the outrageous loans somehow made economic sense for the student (ivy education is overvalued in the job market because hiring managers act dumb).
i also think this approach does help incoming students to state schools right now. without getting into wonky discussion of total education funding or national debt, it does set the expectation that state schools will be at least debt-free if not free for those who are taking loans right now.
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you are correct, state schools are not funded with endowments, so they donāt operate like the ivies. entire departments can be cut when legislatures vote on a budget. yes itās possible the reaction will be to raise state school prices, and the DOE will absolutely have to step in somehow. still, at least we are talking about actual regulatory powers over cost of education going forward.
I think this is definitely a problem going forward. I think that dealing with debt that people already have is separate from this.
The way I see it is, if the education was actually worth the value of the loans, then the education would allow the borrowers to pay off the loans without much difficulty. Thatās not what happens a lot of the time. So many of these are bad loans, that donāt reflect the value of the product. They should not be made or given.
If we just switch the payer of the loans from the student to the govt, then it becomes the govt that lighting money on fire. I suppose thatās better, but itās still not great.
I donāt think this would work (at least not for Harvard specifically). Iām sure there are many more people in the world willing to pay whatever Harvard asks than Harvard has spots. And same for all other top schools. Where the pressure would be is on some of the middle tiers that charge Harvard prices but arenāt any better than UMass.
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Itās a real-world application of the classic āHow many 5 year olds?ā problem.
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Primary threat from the left should be a thing that works on Synema. Not so much for Manchin.
Thereās got to be a way to pass the costs of 17 year oldās not paying their student debt onto the institutions that inflated their tuition in the first place.
Itās not really the ivies though. Letās be honest, people who graduate from the ivies are likely making bank. Itās the Tier 4 private schools that charge as much as the ivies or more. Those are predatory.
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Sure, tax their endowments to pay for it. Iām all in. But donāt exclude the people who were targeted the worst.
Oh donāt get me wrong, Iām totally in favor of wiping out all student debt.
I think the biggest problem with this is that the stupid rich kids still end up running things, as long as their parents can pay. The private schools to VP+ pipeline needs to be shut down.
The Netflix miniseries Money Explained has an episode on student loan debt, and a guy from Purdue proposes income-based repayment. In this scheme, investors and alumni pay the tuition, and the students agree to pay a percentage of their future income. The idea is that this somehow puts pressure on the school, because the investors will want a good ROI. It wasnāt clear to me what the feedback mechanism would be. If the investors decide the tuition, then I guess thatās a potential mechanism.
The guy was aghast at the notion of giving money to people, maybe even using the term socialism, so he came off as a right winger to me.
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Patriot Act covered a bunch of similar materials too
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https://twitter.com/the_illinoize/status/1396588401927786504
in gerrymandering news
4 incumbent Rās are getting shoved in the same district in the IL house.
oh they gonna be mad
Looks like Illinois dems get it. Maybe itās the long Daley tradition exerting itās influence. Whatever, the reason, I approve. Gotta fight fire with fire.
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TBF, they are mainly ripping off the govt through the GI Bill, but Bidenās people are working on that and have made some changes.
Itās not the online schools or super dicy places, there are planty of easy admittance residential liberal arts colleges for the scions of the well to do.
Hereās a partial list: The Best Conservative Colleges In The U.S. | The Best Schools