DataRepublican: Using 53.7 billion in government grants to solve the student loan crisis?
Iโve counted 24,363 nonprofits with "college," "university," or "school" in their name. These institutions collectively report $53.7 billion annually in government grants.
As of Q2 2020 (before the CARES Act obscured the numbers), the federal student loan portfolio was $1.54 trillion, with $128.3 billion in defaultโand that number had been growing by several billions every year.
As payments are enforced again, the amount in default will likely jump significantly.
๐ฐ The Proposal:
What if we remit defaulted student loans directly from the grants given to colleges?
If colleges donโt want their grants cut, they should:
๐ Stop admitting students who are likely to default.
๐ Ensure their graduates are prepared to succeed financially.
We all know the status quo is rewarding bad practices. Itโs time for institutions to share responsibility for student outcomes.
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