Holding colleges accountable with market forces that keep nearly every other industry in check—rather than bailing them out at taxpayer expense—is the way forward.
The plan—which is set to unfold in October when the three-year student loan payment pause lapses—amounts to a de facto bailout paid for by taxpayers.shrinking monthly payments for many borrowers by both adjusting the equation used to calculate discretionary income and cutting the percentage borrowers pay in half. And it shortens the timeline in which loans are completely forgiven by 10-years for borrowers with balances of $12,000 or less, among other provisions.
In fact, plots to cancel student loan debt in mass exacerbate the problem. Bailouts are little more than a financing plan for colleges to continue spending like drunken sailors.found that spending at median flagship universities jumped by more than one-third between 2002 and 2022, with average per pupil expenditures rising by 15 percent. Meanwhile, the cost of tuition and fees for the average student increased by 64 percent during the same period.
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