The only thing more surprising about the Education Department’s proposed rule on college loans is that it took this long for common sense to prevail over the interests of Big College.
On Friday, the department issued a “notice of proposed rulemaking” that would, if implemented, block taxpayer-subsidized student loans for worthless degrees. To say that this is needed is a vast understatement.
As it stands, there is nearly $1.7 trillion in outstanding student loan debt, and “fewer than 40% of borrowers are in repayment, and nearly 25% of borrowers are in default,” notes The Federalist’s Breccan F. Thies.
Why? Because far too many students were suckered into borrowing money – with the loans heavily subsidized by taxpayers – for college degrees that guaranteed them nothing, other than delaying adulthood by four years while piling up debt.
Colleges and universities have made out like bandits from this scheme, which lets them create bogus majors, pad their payrolls with administrative jobs, and hike tuitions massively, knowing that taxpayers would cover the costs.
Joe Biden made the problem worse by telling students that they’ll never actually have to pay off their college loans.
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