student loans

The $1.5 Trillion Student Loan Debacle Hits a Tipping Point

What’s to be done about the large and growing number of Americans who cannot repay their student loans? There are two new developments. The New York Times reports, “Senators Marco Rubio and Elizabeth Warren introduced a bill on Thursday that would prevent states from suspending residents’ driver’s licenses and professional licenses over unpaid federal student […]

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Student loan debt

Why College for All Is A Big Mistake

More and more Americans are going on to post–high school education, encouraged to do so by both governments and nonprofit organizations. According to the U.S. Department of Education, for example, “In today’s world, college is not a luxury that only some Americans can afford to enjoy; it is an economic, civic, and personal necessity for […]

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Popping the Higher Education Bubble

Nearly a decade ago, my then colleague Andrew Gillen suggested that one could say that higher education was in a bit of a “bubble”: over-exuberant “investors” in human capital, better known as students, were potentially misallocating their resources, becoming increasingly underemployed after graduation, leading to adverse financial consequences. In the private sector, bubbles, like those […]

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What the Tax-Reform Law Could Do to Higher Education

Exceptional athletes are often called game changers, but the real game changers in sports are the committees that set the rules.  Changing the height of the pitcher’s mound changes the game.  So too with expenses in higher education.  The rules are changing. The House of Representatives has passed a tax reform bill that includes several […]

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Are 3-Year Bachelors Programs Worth It?

Three-year bachelor’s degrees are back in the news mostly because colleges and universities are coming under heavy pressure to make higher education more affordable. Last month New York University, one of the most expensive schools, launched its “NYU Accelerate,” which officials called “a new program that outlines pathways to make it easier for some students to […]

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How Federal Student Loans Increase Tuition and Decrease Aid

Conventional wisdom says that expansions in federal student aid will result in a more affordable and equitable post-secondary education system. While this belief has motivated massive expansions of federal aid in the recent past, rapidly increasing tuition and student loan default rates are raising questions about this approach. In a new study, I review the […]

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Obama Backs the Worst Colleges While Destroying For-Profit Schools

The federal government happily subsidizes inferior state colleges that graduate few if any of their students. That includes Chicago State University, which has a 12.8 percent six-year graduation rate. The Obama administration has rewritten federal student loan rules in a way that encourages colleges to raise tuition and effectively subsidizes the worst colleges the most. The Federal Reserve Bank of […]

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Why Not Use Endowments to Lower Tuition Costs?

Connecticut is going through the motions of trying to tax Yale’s $25.6 billion endowment to help relieve the state’s $266 million shortfall. That effort will fail, but public opinion is starting to question the appropriateness of government-conferred tax benefits for university endowment funds. At Harvard, alumni as politically diverse as conservative Ron Unz and progressive […]

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What Candidates Can Do For Higher Education Now

By Peter Wood In 2014 Senator Marco Rubio lent his support to CASA, the Campus Accountability and Safety Act—the effort by Missouri Senator Claire McCaskill and New York Senator Kirsten Gillibrand to strip the due process rights of students accused of sexual assault.  The bill died that year but McCaskill and Gillibrand brought it back […]

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The Liberal Arts Can’t Fix Higher Education

For the past two autumns the two leading academic reform organizations, the National Association of Scholars (NAS) and the American Council of Trustees and Alumni (ACTA), have held events offering high praise to the liberal arts as a means to improve students’ writing and to provide them with the classical culture that Mathew Arnold calls […]

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A Close Look at Clinton’s Student Debt Plan

Nearly everyone recognizes that student debt has risen to a level that will be difficult to sustain in the future given the nation’s slow growing economy and the sagging incomes of too many college-educated Americans. Nearly 40 million Americans are carrying some form of student debt; more than 7 million are in default on their […]

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Default on Student Loans? Bad Idea

Writing in The New York Times, Lee Siegel encourages students to follow his example and default on their student loans. The four biggest problems with his piece are: Siegel is the wrong case study Even if you are of the opinion that college should be free and student debt is immoral, Siegel is the wrong […]

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We Can End the Student Loan Mess

By Diana Furchtgott-Roth, Jared Meyer This month, as 1.8 million newly minted bachelor’s degrees are handed out, most graduates will be coming off the stage with much more than a fancy piece of paper. Seventy percent will take an average of $27,000 in student loan debt with them as they try to build their careers after college.  This […]

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Give Up Your Citizenship for $100,000 over Four Years?

• Campus Reform asked out-of-state students at UVA and UMD if they would be willing to give up their U.S. citizenship to become “undocumented students.”
• Out-of-state students at both universities pay nearly twice as much as in-state students and illegal immigrants pay.

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A Proposal to Let Bankruptcy Discharge Private Student Loans

A Wall Street Journal editorial today took a very negative view–rightly, in my opinion–of President Obama’s proposal to let student borrowers discharge private student loans through bankruptcy. By law, repayment of federally guaranteed loans cannot be avoided this way. But the Journal wrote: “If there’s not a great outcry over letting borrowers stiff private lenders, eventually […]

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National Review Fumbles on Student Loans

Over at NRO yesterday Jay Hallen proposed a few solutions to easing the student-loan bubble. Though his impulses are correct his recommendations fall flat. Hallen first proposes that the Department of Education move to a “risk-based pricing” system in which it would consider a student’s high-school GPA or intended major in determining the loan price. […]

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Those Accountability Rules for Student Loans

This past Monday, the Department of Education proposed “gainful employment” rules that will regulate postsecondary vocational programs, primarily those offered by for-profit colleges, on the basis of their graduates’ ability to pay back their federal student loans. Proponents of higher education reform should welcome this move, but not because it targets unscrupulous actors in the […]

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Another Pitfall for Student Loans

In a recent article for Career College Central, I discuss the negative implications of the Department of Education’s (ED) proposal to alter the gainful employment rule to restrict the amount of money that a student could borrow by program of study and expected entry level occupational earnings. I identified three major flaws with the proposal. […]

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Those Disastrous Student Loans

Alan Michael Collinge is back in his gadfly role agitating against the student loan industry. Collinge is the author of last year’s The Student Loan Scam: The Most Oppressive Debt in U.S. History—and How We Can Fight Back (Beacon Press) and founder of the website studentloanjustice.org, dedicated to, among other things restoring the bankruptcy protection […]

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What Does ‘Sustainability’ Have to Do With Student Loans?

The student loan crisis – or near crisis; narrowly-averted crisis ; or postponed crisis – no one is sure – comes co-incidentally at a moment when many colleges and universities are once again repackaging their basic programs. The new buzzword, as John Leo has pointed out is “sustainability.” I also recently tried my hand at […]

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Student Loans – Sequel To The Mortgage Mess?

A few weeks ago, I alerted readers to the threat of a tightening of the student loan market . Banks have been bundling student loans, like home mortgages, and selling them as securities. First Marblehead Corporation in Boston has been the nation’s biggest player in “securitizing” student loans, and just like home mortgage-backed securities, the […]

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First Mortgages, Now Student Loans?

Last week, First Marblehead Corporation, a Boston-based company, saw its stock plummet after cutting its dividend. The problem? First Marblehead is in the business of “securitizing” student loans. A year ago, this would have required some explanation, but the sub-prime mortgage mess has taught Americans – and people all over the world – the meaning […]

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