Indeed. There could be a way to figure out what the equivalent lending amount would be for a student if he/she/it were attending the state university- or some other benchmark. That amount then becomes an allowable lending amount for a student to take to their private secular or religious instutituon but it is capped at that amount. AND that amount, is designated in statute as having a first position in default. In other words, the government gets paid first every month or quarter and before payments for other education loans are made. You dont want to give the student the "state equivalency" amount and then some other source lends them a pantload and they are not able to pony up on the fed backed loan. They could still end out defaulting on that too but that is true of the state institution students. Something like that. I would do some thinking before going totally binary where only state institution students would be eligible. I could incorporate an element of it, such as using the state institution equivalency as a cap.
Duke is a private university and UVA public and UVA out of state is about $52,000 a year. In state is about $18k. Duke is probably closer to $58,000 which is still good relatively compared to how high it is ranked and for a private university. it is not up to the school to be worried about borrowing to be honest. The borrower is the one on the hook. schools are not just raising tuition because of ease of borrowing but also because of demand. I think if people are qualified to borrow then they should be able to borrow but the Fed government should not subsidize loans for private universities. Tuitions have probably increased 5x since the 1969 - 1973 levels you quoted. But havent salaries also increased by a similar if not larger amount? Think about what a profesional earned in 1967 and what the same person earns now in 2021. I think those salaries could have jumped 5 - 8x so the tuitions at universities have not gone up by some ridiculous amount in light of other costs. Problem is it is a HUUUUGE meatball to pay at once when you add in $15k for room and board a year plus a few grand for books. Most people can afford university the same way they buy a house but a house you can amortize over 30 years with a small down payment.... universities require that payment up front in two installments in a year and not many sit on that much cash without borrowing. The better off can tap into HELOCs or 2nd mortgages or 401k borrowings or setting up those education plans (529s?). It is a lot easier to buy a house you cannot afford than an education you cannot afford even though the education gets a lower interest rate.....messed up.
I've read that tuition inflation has been much higher than the cost of living increase for the past several decades. It isn't just the Ivies, Stanford and Duke. Second and third tier private schools have raised their tuitions by a similar amount.
I think for private unicersities they should then cap it. Duke is $58k while Syracuse is $55k. Columbia is $63k. This is tuition only but when you add room and board it is another $15k. I think the Fed should cap it at some amount equivalent to public university cost. $50k. This is for subsidized or unsibsidized fed loans. Private loans those people are on their own. Then the person has to find private sources (which there are plenty) for the difference. A out of state tuition plus fees is same as tuition alone at private univeristy. The whole loan system should be revamped to be like a 30 year mortgage. $200,000 loan at 3% is about $950/month payment. That should be easy for someone to pay back over time and much smaller defaults. You can put a bonus for early repayment and lock in rates.
Hey Tree... Since I'm so good at "derailing posts" according to some here... I have a question to you, B1, and a few others. If Trumpy doesn't run in '24, who would you like to see run? This goes out to B1 especially, because if he's anything, he's opinionated. Would Pompeo be worthy of your vote? Cotton? Cruz? I know Pence is out of the conversation, or I'd think he was. I know he's conservative af, and I realize he was "only" the VP, but he sure seems to have the personality of one of those wax statues you see over in Myrtle Beach. I could be wrong on that though. He did win the governorship in Indiana so he must have at least a little charisma. Anyway... who would you like to see run in the absence of Trump?
I guess you didn’t get invited to the virtual Xmas party. Tree and B1 were there drinking eggnog with Ipatent talking politics. 2022 is coming,how about getting out of the house and finding some friends for your own mental health. Asking opinions of the mentally disturbed so you can stir up shit is a pure jerk off move.
Two areas will help immediately with the student debt problem: Student loans should be interest free. Book price limits is an immediate action Congress can take and reduce debt as much as 10% going forward.