• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Student Loans: Trump wants colleges to have skin in student loan debt game

chuckiechan

DP Veteran
Joined
Dec 2, 2015
Messages
16,568
Reaction score
7,253
Location
California Caliphate
Gender
Male
Political Leaning
Independent
Trump wants colleges to have ‘skin’ in student loan debt game | Fox Business

The Trump administration, seeking to tackle the mounting student loan debt Opens a New Window. issue, is weighing the possibility of requiring colleges Opens a New Window. to share some of the financial burden.

Officials outlined a proposal to require colleges that accept taxpayer funds to have skin in the game through a loan risk-sharing program, released on Monday.

Students are required to pay back their loans regardless of the quality of education received, which may directly affect their ability to fulfill obligations as a borrower. Unfulfilled obligations bear no consequence on the college.

A better system would require postsecondary institutions accepting taxpayer funds to share a portion of the financial responsibility associated with student loans, the document read, adding the administration planned to work with Congress on the issue.

The idea here is that colleges are creating majors that create little or no employment income. But if you look at any college campus, there is loads of construction going on. Too many students are gong to college, and the college is trading loans for useless degrees and the taxpayers are stuck with the bill. Trump's idea is to have them partly responsible for the debt. The idea is that they will be more cognizant of the ability to earn a living and pay back the debt, rather than use these loans to buff up the construction budget.

Each time the loan cap is raises, tuition goes up. I wonder why.
 
Trump wants colleges to have ‘skin’ in student loan debt game | Fox Business



The idea here is that colleges are creating majors that create little or no employment income. But if you look at any college campus, there is loads of construction going on. Too many students are gong to college, and the college is trading loans for useless degrees and the taxpayers are stuck with the bill. Trump's idea is to have them partly responsible for the debt. The idea is that they will be more cognizant of the ability to earn a living and pay back the debt, rather than use these loans to buff up the construction budget.

Each time the loan cap is raises, tuition goes up. I wonder why.

I think this is more tackling the symptoms rather the problem. It doesn't solve the cost problem in the first place.
 
I suppose the fix I'd prefer is to create a financial incentive (to the school) tied to the number of graduates in STEM or other needed studies. Give them a reason and they'll find a way to produce them.

Or I suppose an incentive to the students would be alright, except that it should be tied to completing the program, not just attending.
 
I think this is more tackling the symptoms rather the problem. It doesn't solve the cost problem in the first place.

What do you think is the cause of the inflated university cost?
 
I suppose the fix I'd prefer is to create a financial incentive (to the school) tied to the number of graduates in STEM or other needed studies. Give them a reason and they'll find a way to produce them.

Or I suppose an incentive to the students would be alright, except that it should be tied to completing the program, not just attending.

Maybe give the students loans then they get X% forgiven depending on their final GPA when completing the program? However grade inflation would be a huge issue.
 
What do you think is the cause of the inflated university cost?

Letting private schools have access to public funds and not controlling cost and quality of public ones. Public universities should have capped tuition with the state picking up the rest of the cost and offering as many grants as possible to help lower income or well performing students, not loans, grants. Have one federal cap for out-of-state students at public universities as well and assist states with funds for improvement and providing grants to students. Almost all states have this already, but the quality of in-state schools needs to be drastically improved for many states.

Make students attending private schools ineligible for loans and grants from or subsidized by the government. Make public institutions a much better option and cut off the hand inflating costs at private institutions.
 
Last edited:
Trump wants colleges to have ‘skin’ in student loan debt game | Fox Business



The idea here is that colleges are creating majors that create little or no employment income. But if you look at any college campus, there is loads of construction going on. Too many students are gong to college, and the college is trading loans for useless degrees and the taxpayers are stuck with the bill. Trump's idea is to have them partly responsible for the debt. The idea is that they will be more cognizant of the ability to earn a living and pay back the debt, rather than use these loans to buff up the construction budget.

Each time the loan cap is raises, tuition goes up. I wonder why.
I think it's a great idea.

Look, I'd like everyone to have an education, but not everyone is ready or qualified for higher education. It's not for everyone, simply because they've reached the age of majority.

But to that end, I'd really like to provide up to 2 years of publicly funded Community College. Let the trades kids get moving on a trade or business, and let the college bound only have to figure out how to pay for two years at the university, while being better prepared to succeed once they get there.
 
Each time the loan cap is raises, tuition goes up. I wonder why.

We don't want students getting 3.5 year non degrees. So when it's decided to raise tuition, loans get out in front of it. College loans are not as much based on dollars as credits.
 
Trump wants colleges to have ‘skin’ in student loan debt game | Fox Business



The idea here is that colleges are creating majors that create little or no employment income. But if you look at any college campus, there is loads of construction going on. Too many students are gong to college, and the college is trading loans for useless degrees and the taxpayers are stuck with the bill. Trump's idea is to have them partly responsible for the debt. The idea is that they will be more cognizant of the ability to earn a living and pay back the debt, rather than use these loans to buff up the construction budget.

Each time the loan cap is raises, tuition goes up. I wonder why.

Great idea....
 
I think this is more tackling the symptoms rather the problem. It doesn't solve the cost problem in the first place.

Yeah; crap like paying Fauxcahontas $300,000+ for a SINGLE COURSE has got to stop.
 
I think it's a great idea.

Look, I'd like everyone to have an education, but not everyone is ready or qualified for higher education. It's not for everyone, simply because they've reached the age of majority.

But to that end, I'd really like to provide up to 2 years of publicly funded Community College. Let the trades kids get moving on a trade or business, and let the college bound only have to figure out how to pay for two years at the university, while being better prepared to succeed once they get there.

We are doing that here in California in our Community Colleges (AKA Jr. College), in various parts of the state, Sacramento included. But I guess there is a student loan ;) hiding there somewhere...
 
The guaranteed government student loan process is a scam. The only people that get hurt are the students who get saddled with a mountain of debt, a waste of 4-6 years of their lives, and a degree (if they are lucky) they cant use.
 
Maybe give the students loans then they get X% forgiven depending on their final GPA when completing the program? However grade inflation would be a huge issue.


For example, just make the schools guarantee 25% of the principal.

We have students graduating with degrees in "underwater basket weaving" and a 150K student loan burden.
 
Letting private schools have access to public funds and not controlling cost and quality of public ones. Public universities should have capped tuition with the state picking up the rest of the cost and offering as many grants as possible to help lower income or well performing students, not loans, grants. Have one federal cap for out-of-state students at public universities as well and assist states with funds for improvement and providing grants to students. Almost all states have this already, but the quality of in-state schools needs to be drastically improved for many states.

Make students attending private schools ineligible for loans and grants from or subsidized by the government. Make public institutions a much better option and cut off the hand inflating costs at private institutions.

Ahhh, that doesn't seem to solve the issue either.... all you are doing is distributing the cost elsewhere... not lowering the cost. Tuition for universities used to cost significantly less, and I don't think you are addressing WHY....
 
The guaranteed government student loan process is a scam. The only people that get hurt are the students who get saddled with a mountain of debt, a waste of 4-6 years of their lives, and a degree (if they are lucky) they cant use.

So true, and so sad. It is a giant scam. Based on the myth that a college degree increases your earning potential and makes you middle class. NO. Being middle class (or higher) increases your earning potential and makes you more likely to have a college degree (reverse causality).

It's similar to the real estate scam that caused the financial collapse. Owning a home makes you middle class. NO. Being middle class makes you more able to own a home.

Anyway, thank you Trump for having some common sense. How come our brilliant law professor president never thought of anything like this?
 
Ahhh, that doesn't seem to solve the issue either.... all you are doing is distributing the cost elsewhere... not lowering the cost. Tuition for universities used to cost significantly less, and I don't think you are addressing WHY....

Maybe the student loan scam caused tuition to rise. The colleges were getting millions of students who were paying 100%, thanks to the loans. No reason not to raise tuition, since the students had loans and therefore would and could pay any price.

A really well designed scam. I wonder if the universities somehow influenced the government to provide them this golden opportunity to scam students.
 
We are doing that here in California in our Community Colleges (AKA Jr. College), in various parts of the state, Sacramento included. But I guess there is a student loan ;) hiding there somewhere...
Publicly financed community college is such a no brainer, I'm at a loss to understand why it's not implemented.

I'm a huge fan of community colleges. They might not be for everybody, but the are the right fit for many. They're local, small, easy to navigate, and a helluva' good value!
 
So true, and so sad. It is a giant scam. Based on the myth that a college degree increases your earning potential and makes you middle class. NO. Being middle class (or higher) increases your earning potential and makes you more likely to have a college degree (reverse causality).

It's similar to the real estate scam that caused the financial collapse. Owning a home makes you middle class. NO. Being middle class makes you more able to own a home.

Anyway, thank you Trump for having some common sense. How come our brilliant law professor president never thought of anything like this?

College is NOT a bad thing. People that have the aptitude and a desire for college should go and seek degree fields they can be successful...and theres lots of them. And hey...if anyone has the means and wants to pay out of pocket for a 6 years at a liberal arts school or to graduate with a worthless degree...more power to them. But hiding out for 4-6 racking up debt you will never be able to repay...that doesnt make much sense. Better to find a technical academy that teaches a working skill.
 
Not “Free” per se, but better than nothing.
Tuition, net price and cost to go Sacramento City College
Actually it is "free"; "Tuition free".

It's exactly what I envisioned: free tuition

I don't see kids living on campus for community college. I find that pretty ridiculous. Community colleges usually draw from the community, i.e. the name "community college".

I'm probably O.K. with the kids paying for things like books or tools, since they keep those. I'd probably instate some type of assistance for those, like an advantageous loan.

As to the "other" housing expenses on that sheet, forget about it; those are the expenses they or their parents are picking-up when they live at home. I envision this as a local-in-district thing.
 
So true, and so sad. It is a giant scam. Based on the myth that a college degree increases your earning potential and makes you middle class. NO. Being middle class (or higher) increases your earning potential and makes you more likely to have a college degree (reverse causality).

It's similar to the real estate scam that caused the financial collapse. Owning a home makes you middle class. NO. Being middle class makes you more able to own a home.

Anyway, thank you Trump for having some common sense. How come our brilliant law professor president never thought of anything like this?
You lost me here, with the bolded. Are you saying first one lands a middle-class job, then they earn their degree?
 
We don't want students getting 3.5 year non degrees. So when it's decided to raise tuition, loans get out in front of it. College loans are not as much based on dollars as credits.
What?

Do you know how many kids do their FAFSAs and get loans and grants their freshman year? I'm fairly certain at most universities it's the majority, even though I have no stats at hand.
 
For example, just make the schools guarantee 25% of the principal.

We have students graduating with degrees in "underwater basket weaving" and a 150K student loan burden.
I was thinking the same. But you'd have to assure the student bears serious brunt of burden, so as not to make an easy default.
 
What?

Do you know how many kids do their FAFSAs and get loans and grants their freshman year? I'm fairly certain at most universities it's the majority, even though I have no stats at hand.

I've done plenty of college loans and have been informed of the process by those who do it. Mine were yearly, but we avoid problems.
 
Ahhh, that doesn't seem to solve the issue either.... all you are doing is distributing the cost elsewhere... not lowering the cost. Tuition for universities used to cost significantly less, and I don't think you are addressing WHY....

By moving most of the cost of administration to the state it becomes public interest, the state government has motivation to control costs or at the very least more transparent. And by reducing the money available to private universities they will be forced to cut costs to attract students away from the public system.
 
Back
Top Bottom