Bernie Sanders wanted free college for everyone.
Well, somebody would be paying, just, not the students.
The Obama administration does not like for profit
colleges, among other for-profit entities it dislikes.
of student loans incurred to attend fraudulent
said he favors student loan law changes.
Political Student Loan Stakeholders
Let’s see, well, obviously, the students. The ones who already owe money, and the ones still racking up student loan debt.
Anything that lowers/eliminates student loan debt makes those folks happy.
What about the taxpayer?
The government shows that $1.3 trillion dollars of student loan debt as – ready for this? – an asset on its books.
Yeah, well, most everyone admits that money is NOT getting repaid.
What about the colleges? Yeah, the ones who get the money, whether their students get jobs or not.
The colleges, who now have no skin in the game. The big winners
Student Loans and Law Schools
Ah, law school. Yeah, I went there. Paid my own way, and I do not remember what it cost.
But law schools now are charging forty, fifty thousand dollars, or more, per year!
The profits are enormous. You have building utilities and maintenance, and, professor and staff salaries.
Anything after the first 20 or 30 students should be profit.
So, where is the incentive? Why, to admit more students!
How? Why, just lower your admission standards.
And, the result?
Lower bar exam pass rates, around 50% in a lot of states.
And what do law schools say about that?
Why, the damn bar exam is too tough! You keep flunking folks, you are going to make it hard to sell our product.
Which will not produce more jobs for lawyers, which they need to pay back the six figure student loan balances they have by the time they get to the bar exam.
Student Loan Crisis: Political Solutions
The big picture is, the government vastly increased student loans, colleges lowered standards and made up useless programs to make money, tuition rose astronomically, and most of that money went into college administrative expenses.
That was not the plan.
Lawyers are working, as lawyers, for $14 per hour as temps. They work for an agency that places them with a law firm for a few months at a time.
Lots of things could be done.
If the government stays in the student loan business, the colleges must have skin in the game. That is, they must be on the hook for at least some of student loan debt their students do not repay.
And, bankruptcy law must be changed so that those who cannot pay can discharge student loan debt, and get a fresh start.