Grad PLUS loans were created in 2006, allowing graduate students to borrow up to the full cost of attendance. Total borrowing rose from about $2 billion in the program’s first year to over $15 billion
These people are not paying back their loans! It's nearly half of student loan debt. For careers that doesn't pay enough to pay the loans back. It's literally a government $$ transfer to Colleges and Universities that have Billions dollar accounts
essentially free public system, like City College in New York and state universities around the country, and a private sector for rich kids. The result was the computer revolution, the biotechnology revolution, Nobel Priuzes, and the world's greatest economy. In the free market system, if you want people to consume more of something, you charge less for it. If you think an educated workforce will return more to society, why charge more it.
"To incentivize schools to reduce tuition and fees" yet trump doesn't incentivize Corporations to pay employees more, doesn't incentivize Corporations to not shrink their products, doesn't pay attention to what's effecting Americans... Financial Education would have helped, a lot of others things would have helped... but the choice trump chose is to limit access to higher education for the 99%
Giving out a loan is a business decision; ROI should be considered in terms of whether or not the borrower can pay back their loans in a timely manner.
However from a societal standpoint we should be emphasizing education.
The entire higher-education system is not compatible with the AI age; and thus needs to be redesigned or discarded for better models. Debt to income ratio projections based on Majors selections, Opportunity Cost, plus ROI must be the initial considerations when designing a new higher ed paradigm. And we are not even talking about the elephant in the room: Post-labor economics, yet.
Shocking, indeed, to think that loans might have to repaid at some future date, that everything might depend on one's job prospects. Listening to the Fordham president talk was particularly irritating.
Makes sense to limit the amount of loans based on expectations of future earnings. Also, do social workers really need masters degrees? Or K-12 teachers? And going to a private schools seems like a huge waste of money for most degrees. Students and parents need to make better decisions.
That jump from $2B to $15B is staggering. It's a massive increase in leverage for grad students. I'm curious where Bloomberg got those specific figures—do they have a link to the Department of Education data? If funding tightens now, the ROI on advanced degrees is going to look very different.
We use cookies, device fingerprinting and cross-device tracking to personalise content, serve targeted advertising, and analyse how you use our site across your devices. By clicking Accept all you consent to the use of these tracking technologies. Your data may be used to build a profile of your interests and show you personalised ads on other sites.
Privacy policy
Comments (21)
Daily Junction discussion mixed with clearly attributed comments from the original video provider.
Join in — free. Comments on Daily Junction are for members, so real names stay rare and bots stay out.
One field. We email you a 6-digit code — no password needed. Your comment is kept while you do it.
Under 13? You’ll need a parent’s OK first — it takes them one click.
Giving out a loan is a business decision; ROI should be considered in terms of whether or not the borrower can pay back their loans in a timely manner.
However from a societal standpoint we should be emphasizing education.
More institutions should be required to publish employment after graduate numbers by major and salary of graduates (recent, not cumulative or avg).