Don’t worry. Keep borrowing

President Obama’s plan to rate colleges is “yet another mistaken attempt . . . to alleviate some of the symptoms of a problem without actually addressing the underlying disease,” writes Erika Johnsen. The other part of the plan — promoting income-based repayment — will make the disease worse.

The “easy, cheap and indiscriminate availability of student loans ” juices demand and helps universities raise their prices, writes Johnsen. The Obama administration keeps sending out “signals about how ‘easy’ it will be to repay these huge loans after you graduate with a little help from Your Friend, The Federal Government.”

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Comments

  1. tim-10-ber says:

    Yet another entitlement program. Why not address the root causes: 1) no, not everyone needs to or should go to college and 2) which should be #1 the large number of high school graduates, er high school students given a diploma that is not worth the paper written on as the kids were never prepared for post-secondard education. Hold the K-12 schools/districts accountable (public and private), financially accountable and things will change over night…no one has the back bone to make this radical change…

    • Also, get the government out of the student loan business; period. Let private lenders use due diligence to decide which students (SAT/ACT scores, intended major etc) are good loan-repayment risks. I’d go further; deny all federal aid (including faculty grants etc) to 4-year schools who admit students whose SAT/ACT scores do not indicate readiness for college-level work. They should start at CC level and transfer later, after demonstrating real readiness.

  2. Attempting to push as many people as possible through college has the effect of both driving up the cost of college education for everybody and reducing the wages and employment of college graduates by creating an oversupply of graduates. So we have individuals graduating from college with substantial student debt and winding up working as bartenders, a job they could have gotten without a college education.

  3. tim-10-ber, momof4, Jim… You three are all 100% correct. I couldn’t have said it better myself.

    Unfortunately, no plan Obama or the Democrats offer will ever hold the K-12 schools accountable; they’re demanding the colleges and Universities deal with the mess and take the blame for whatever happens. In other words, this ‘fix’ is akin to seeing a deep, infected cut on one’s arm, and responding by disinfecting the table the arm is going to lay on, in hopes of not making the arm worse…