And it's about time, too. I know of someone who got a degree in English literature back in the early 80's who strill owes on her college loans having not made a payment in over 30 years. That money is just pissed away, because the Einsteins that 'borrow' it can not and will not ever be able to pay it back. Well, those halcyon days are finally over. Students will no longer be able to take out federal loans to pay for degree programs that fail to provide them a return on investment, thanks to a new federal policy that went into effect on July 1.
It’s a response to a shocking fact: Graduates of more than 800 college programs across the country - including at institutions like the University of South California and New York City’s New School - make less than the average high-school grad four years after getting a degree, despite all that time, effort and tuition money.
Now the American government will have no part in propping up degree programs that may not even lead to a livable wage. A provision of the Big Beautiful Bill cuts them off from federal aid access if they can’t break the non-grad salary baseline.
Had the government NEVER backed a single loan (the way it should ALWAYS HAVE BEEN), ONLY degree programs that delivered solid pay return (and thus repayment of private loans), would have existed (with the occasional crazy on the margins). Instead, the government just said "help yourself," and banks, colleges, and ignorant students DID. Government has ZERO BUSINESS being involved in education at ANY LEVEL. From K-PhD, they have ONLY made things horribly worse for ALL INVOLVED - except those who profited from the theft and wealth-transfer from the taxpayers.
ReplyDelete