Education Secretary Betsy DeVos caved on Thursday, agreeing to cancel $150 million in student loan debt in line with an Obama-era policy she previously tried to fight off. The specific debtors to whom DeVos finally succumbed qualified for “closed school” loan discharges, or those who attended failed, fraudulent private, for-profit colleges. While these debts were attributed to a specific, dying breed of colleges, the greater effect of student loans across colleges, public and private, nonprofit and for-profit, remains.
Federal financial aid and student loans in particular will continue to act as a piggy bank for bloated campus bureaucracies, and their tuition pricing can continue to spiral out of control.
The Bennett hypothesis (the theory that the less conditional and controlled access to funding directly causes colleges to further hike tuition and fees) has proven itself in abundance in the decades since the term was first coined by former Education Secretary William Bennett. The theory goes that as long as colleges know the taxpayer piggy bank will foot the bill, they'll continue to increase prices — not for student benefit but to essentially widen their profit margins, even at nominally "nonprofit" institutions.
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4 comments:
Another weak Republican that caved in to the liberal bulling Democrats. Sad day
The fleece can be seen at SU. $600 for student activities fee but no real student activities are actually planned. That’s almost $7.2M per semester if they have 12,000 students. This comes out of financial aid payments to the student. What are they paying for? A slush fund being horded or wasted on building new buildings. Certainly nothing for students.
Good, now they can actually spend their money in the US economy rather than to line the pockets of the already ultra-rich. Student loans should be regulated by the government so individuals can't prey on 17 yr olds with predatory loans.
Homecoming? Campus transportation? Gym access? Special guest speakers brought to campus? All of those cost are most likely associated with the student activity fee. Check out SU Student Affairs division. Im pretty sure that activity fee supports most of those deptartments.
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