Get Rid Of Student Loans

It is time to stop public financing of university education, including not only direct lending but also loan guarantees, subsidies and special protection for lenders to students, especially protection from bankruptcy.

As this article shows, universities have used public finance to fill their pockets and expand their lifestyle at the cost of a generation of indentured students. Staff and faculty salaries have exploded and administrators routinely pocket multi-million dollar salaries. This has to stop, now.

“The tendency of the colleges and universities at the undergraduate or the graduate level is to charge as much as they can, and continue to build and expand,” William Bennett, education secretary under Reagan, said in an interview.

If universities want to finance their fees, they can make their own arrangements and shoulder the risk that future incomes may not cover payments. Innovative ideas such as free tuition in exchange for 5% of the student’s income for the next twenty years – whatever it may be – have been floated but will go nowhere while the soft nest of public financing beckons.

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