Popping the Bubble Democrats Miss Again on Student Debt Fix
In an effort to cope with the student loan crisis, Senate Democrats have unveiled a plan to reduce the rate of student defaults by giving colleges more “skin in the game.” Essentially, the plan penalized universities with a large number of student defaults by forcing them to pay a fine to the feds. Giving colleges more accountability is a good thing, but this plan gives the federal government far more control over the market than we’re comfortable with.
Popping the Bubble Department of Education Takes on For-Profit Colleges
The Education Department has just released an early draft of its plan to limit federal aid to colleges, and for-profit schools are squarely in the spotlight. Under the new proposal, for-profit colleges and career training programs at community colleges whose average graduate debt exceeds certain benchmarks will become ineligible for Pell Grants and other forms of federal aid. This is a decent start, but it could go much further.