One of the bigger issues of the campaign (for non old people :3)
https://www.insidehighered.com/news...bes-higher-education-policies-being-developed
- student loan between student, bank , and COLLEGE. The college assumes some of the risk.
- Student loan is based on the degree pursued. If it is in a field with likely employment like biology then you get better rates. If the field is medival history not so much.
- Student loan based on ability of student to actually finish the degree
Basically colleges now have huge risks in accepting students and are incentivized to make sure that they can graduate and find employment.
They are also forced to adapt to teaching skills the market needs.
Honestly I don't think it's the universities responsibility to assume that type of risk unless the school itself is rewarding a scholarship or loan to a student. Most seniors have atleast a few colleges in mind that they want to apply to and unless scholarships are involved most will go with the best compromise of what that senior wants out of the school's list of majors balanced with the costs which are pretty clearly shown on college websites. For example I looked into and applied to a handful of schools including several private and public ones. If you choose a university with a tuition of $30,000 a year, apply and get accepted, then it's on you to determine how you are going to pay for it. The school's responsibility is to educate the student, not to babysit how they pay for their classes in my opinion. The school assumes the risk that a student may drop out, transfer, or reduce their course load because of the cost which can impact their profit, their demographics, and reputation to an extent but the school isn't responsible for the loan itself and shouldn't be in my opinion.
At the same time the bank should not be involved with determining what a student majors in. They should only be interested in making sure that the loan is paid back over a span of time that both the bank and the student agrees on. Now, the bank should be more responsible and frugal with how much they loan out in my opinion and be more careful, but the loan shouldn't be dependent on majoring in engineering or computer science. If the bank wants to reduce the risk of being burned by a student never paying back their loan then they should loan out smaller amounts and put the student on a plan that is something like where a student gets a new loan every semester or year that covers exactly what the student needs and should not let a student take out too much of a loan too fast. If the student won't be paying back the loan until after they graduate then that frugality by the bank would be beneficial to the student since the student will only being paying back what was necessary for their education and not giant lump sums.
The real reason for such high costs of schools is because of wasteful spending and poor planning in my opinion. Banks and students wouldn't need to worry so much about loans if the school's budgets were ran better and millions of dollars weren't wasted that the students are then shouldered with through tuition hikes. Reduce wasteful spending and the bureaucracy on campus and the cost should go down. This plan by Trump adds complications and more government involvement instead of addressing the real reason behind tuition hikes.
I currently go to a private school and so when I enrolled I knew that the cost per year would be more than a state public school. My school is being paid for through partial scholarship, loans, a part time job, and rodeo/livestock winnings (yes rodeo/livestock show winnings), but it's still very expensive and because of that I will be transferring in the fall to a state public university so that there will be less loans and it will ultimately be more affordable for all involved. It will still be expensive but the responsibility to earn my degree is mine, not the bank's and not the school's, but if schools took steps to reduce their waste, their costs, and their bureaucracy then the bank would have less risk and the student would have less loans in my opinion.
Here is my question about Trumps plan though. How is he going to force banks, which are not government entities, to be involved in deciding a student's education and how will they be forced to work with a specific university? What if it's a private university? How will banks be forced to give out specific loans based on the student's major? Who will force them, the federal government? How is it conservative and constitutional for the federal government to do that?
