Requiring a university to be financially responsible for the earnings of graduates 10, 20, 30 years later?
So, with universities not wanting to take students with loans, will the states ramp their funding back up to where it was in the 70s, to keep education “affordable”? Probably not. Michigan gave that money to the “JCs”.
# House Passes Trump’s Education Overhaul Forcing Colleges to Pay for Student Loan Defaults
This “skin‑in‑the‑game” provision penalizes institutions whose students fail to earn enough from their degrees to repay loans; marking a dramatic change in how higher education is funded and scrutinized.
Part of the long running ideology of some factions, that everything must be rationed by ability to pay. Many states have taken away their funding. If the government makes student loans a “scarlet letter”, that makes universities avoid them, then college is the prerogative of the top tier of society.
It isn’t a matter of white males having an inflated sense of their earning ability. It’s the university’s calculation of the probability of the student defaulting, 10, 20, 30 years later. Currently, some 8% of student loans are in default.
Nah. With AI taking over professional class jobs we will no longer need the numbers of higher educated people. Also we will lift the lid on the number of H 1 B visa to hire highly educated foreigners but at lower pay to many the JC corporations.
Soon the professional class will experience what the worker class did in the 1990’s with the offshoring of their good paying jobs with benefits and automation.
Also US border security will remain low so illegal [undocumented] workers can continue to flow in to fill manual labor jobs at lower cost for the JC’s benefit. I mean come on; $15 minimum wage jobs are killing the bottom line of corporate profits!
Let’s say the word altogether now: corporatocracy.
A society or system that is governed or controlled by corporations
We have been discussing this for a while. The “JCs” seem confident they can buy everything they want, after it has been invented and engineered offshore, at someone else’s expense, by people educated at someone else’s expense. All the “JCs” need here are menials. So high schools and colleges can be defunded, except for the football teams, and the money given to the “JCs”.
Here’s a link from NPR. Colleges will not only need to try to estimate future earnings for every degree, vs the size of the loan to pay for it, but, because better paying degrees are also harder to earn, they need to estimate the probabilities of students giving up on a high pay degree, before graduation.
# Consequences for colleges whose students carry mountains of debt?
The Congressional Budget Office estimates that, if enacted, the full risk-sharing proposal would save the government more than $6 billion over the next decade.
That $6B of “savings” is the point. By backcharging universities, instead of making good on the loan guarantee, the government can then use that $6B for another “JC” tax cut.
The Big O yanked student loan qualification from a lot of for-profit trade schools, because of the high default rate. Without the government program to leech off of, the schools immediately collapsed, because no-one could pay their stratospheric prices out of pocket. Remember ITT? They had an armload of electronics trade schools around. One in my area was newly built only a couple years before. The Steelcase dealer I worked at installed all the furniture in that building. ITT became an acronym for “Interrupted Technical Training”.
# Thousands Of Defrauded ITT Tech Students Are Getting Their Loans Erased
The Biden administration said it is approving 18,000 loan forgiveness claims from former students of ITT Technical Institute, a chain that closed in 2016 after being dealt a series of sanctions by the Obama administration. The new loan discharges will clear more than $500 million in debt.