Perseus_I wrote:Slobberson wrote:Perseus_I wrote:
+1. Government giving money to private corporations (universities these days are basically corporations) is just asking for abuse. Since they are part of the "free market" there's nothing to keep them from raising tuition by the amount of whatever aid they get (and more, so they get more aid). It's so wasteful.
Right, but government run entities don't waste any money. You guys are geniuses.
Public money appropriated to a public institution tends to turn into a poorly-run organization that everyone loves to hate (See the Social Security Administration). Public money appropriated to a private institution has a tendency to become somebody's bonus. Student aid is no exception.
Allowing students to discharge their debt in bankruptcy without consequences to the university who admitted the student and took federal money provides all the wrong incentives. If we want an even worse mess than what we have, then yes, pass this bill. On the other hand, shifting the burden of defaulted student loan debt from students and the public, onto the universities, might not be a terrible idea. If Thomas M. Cooley got a bill in the mail from Uncle Sam every time a student discharged her student loan debt in bankruptcy, they might think really hard about some of their shady practices.
Sure, but the guy you quoted said they should nationalize the public universities. I think he meant have them be run by the gov.