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Given the price inelasticity of college, the money to cover these defaults would probably just come from other students. They'd just hike tuition to cover the
by woeirua 5y ago
Given the price inelasticity of college, the money to cover these defaults would probably just come from other students. They'd just hike tuition to cover the risk.
A much better solution is to revoke the ability of students at specific schools/programs to qualify for federal student loans if the outcomes of the program are poor. Turn off the spigot of money, and they will cleanup their act really quickly.
- vgeek 5y agoThere was a push with the Common Data Set (https://commondataset.org/ https://commondataset.org/) to help increase transparency to potential students, but it runs into a Prisoner's Dilemma, with poor outcome organizations opting not to participate. The Department of Education should have a vested interest specifically in the way that you mention, and they did set up a site that communicates historical outcomes of majors at a per school level at https://collegescorecard.ed.gov/ https://collegescorecard.ed.gov/, but it gets little visibility in the college marketing funnel that is filled with for profit enterprises like US News and Niche-- plus the marketing (admissions and/or athletics) departments of colleges themselves.
- datavirtue 5y agoYou can't just hike tuition unless the government is pumping out 100% loans. This is crazy.