Another Failed Socialist Program

[Samofvt]

The student loan crisis in the US is a perfect example of another failed Socialist program. Under the current socialist lending programs, federal and state student loans are not subject to bankruptcy laws. Until the Biden administration recently started meddling with it (apparently to buy votes?), borrowers must repay those loans at some point in their life regardless of whether the school they attended gave them any sort of education they could use to obtain employment.

On one hand, it sounds fair: borrowers should repay their debt.

But the fact is, these sorts of loans cause all sorts of problems. Since the loans are "guaranteed", there is no feedback loop to govern what investments are sound:

• Universities and Colleges no longer have to be responsible for the quality or content of the educations they provide.
• Universities and Colleges can easily maintain their funding by simply passing students that normally should not be getting good grades
• Universities and Colleges are free to use political criteria, rather than performance-based criteria, to promote students' careers. Students with disfavor-able political views get sidelined at graduation.

The solution to the student debt crisis is clear: Abandon this failed socialist policy and make student loans subject to the same rules as any personal or business loans. Return to the proven system of capitalism that made America great to begin with. Under capitalism, the INVESTOR (Banks, Federal and State lending programs) bears the RISK. The INVESTEE (students) has to do their best to repay any contracts, but like any ordinary loan, they can be nullified under bankruptcy laws.

When investors bear the risk and start to lose money, it will become readily apparent which students and which educational institutions are not performing adequately. Perhaps even businesses that require the educated graduates will be able to have a voice and step in to back the students they require.

Others have made similar observations:

Student-Loan Mess: Socialism Doesn’t Work

The penchant shown by our federal government for instituting socialistic programs coupled with the inability to manage them accounts for much of the frustration currently shown by voters.

www.wsj.com

 

[DGS49]

Student loans are not dischargeable under Bankruptcy laws because in the past B'ruptcy had been used by doctors and lawyers starting out their careers, to eliminate the debts they had accumulated while going to school. But regardless, the principle holds true: student loans should be repaid.

One obvious thing that is missing from the current system is that colleges and universities have no skin in the game. They can charge whatever they want and if the education proves worthless there is no accountability.

 

[Unkotare]

Student loans are not dischargeable under Bankruptcy laws because in the past B'ruptcy had been used by doctors and lawyers starting out their careers, to eliminate the debts they had accumulated while going to school. But regardless, the principle holds true: student loans should be repaid.

One obvious thing that is missing from the current system is that colleges and universities have no skin in the game. They can charge whatever they want and if the education proves worthless there is no accountability.

How realistic do you think it is for colleges to guarantee any specific kind of employment, and for how long? Sounds like a way to dodge personal responsibility.

 

[Samofvt]

How realistic do you think it is for colleges to guarantee any specific kind of employment, and for how long? Sounds like a way to dodge personal responsibility.

And what responsibility should the schools hold? Why do most colleges pass students, regardless of performance, up until their senior year? Should schools prevent students from graduating based on political ideology?

 

[Unkotare]

...Why do most colleges pass students, regardless of performance, up until their senior year? ...

Do you have proof that they do?

 

[Admiral Rockwell Tory]

And what responsibility should the schools hold? Why do most colleges pass students, regardless of performance, up until their senior year? Should schools prevent students from graduating based on political ideology?

When was the last time you attended college?

 

[Samofvt]

Do you have proof that they do?

Do you have proof that they don't? What is to stop them?

It's a straightforward chain of logic: the college or university wants to keep money coming in to pay its bills, so they pass all students on to the next year of classes so that they can harvest the student loan money. What good would a shrinking student population be to the college? How could they pay all the bills nessisary?

It's the student's fault anyway if they don't get anything out of the "education" being provided, right? Plus, it's for the greater good of everyone.

 

[Unkotare]

Do you have proof that they don't? What is to stop them?

It's a straightforward chain of logic: the college or university wants to keep money coming in to pay its bills, so they pass all students on to the next year of classes so that they can harvest the student loan money. What good would a shrinking student population be to the college? How could they pay all the bills nessisary?

It's the student's fault anyway if they don't get anything out of the "education" being provided, right? Plus, it's for the greater good of everyone.

Complete failure of logic.

 

[Samofvt]

When was the last time you attended college?

A while ago, but when I did, I had a student work study job (so I could afford to eat). That job entailed recording student grades on long term storage media. All students had the same exact grade for every class that I recorded. I processed 10's thousands of records (it was a big university).

 

[Samofvt]

Complete failure of logic.

At least I can explain my logic.

Try explaining yours. Who verifies that the universities don't do this sort of thing?

 

[Admiral Rockwell Tory]

Do you have proof that they don't? What is to stop them?

It's a straightforward chain of logic: the college or university wants to keep money coming in to pay its bills, so they pass all students on to the next year of classes so that they can harvest the student loan money. What good would a shrinking student population be to the college? How could they pay all the bills nessisary?

It's the student's fault anyway if they don't get anything out of the "education" being provided, right? Plus, it's for the greater good of everyone.

Most schools get funding from their state. They cannot raise tuition without permission of the state government.

 

[Admiral Rockwell Tory]

At least I can explain my logic.

Try explaining yours. Who verifies that the universities don't do this sort of thing?

Public schools are usually managed by the state they are in.

 

[Unkotare]

At least I can explain my logic.

Try explaining yours. Who verifies that the universities don't do this sort of thing?

That is NOT logic.

 

[Blues Man]

When was the last time you attended college?

It is quite common for college professors to grade on a curve in my experience.

Grading on a curve does indeed allow students who do not know the course material to pass