No reporting on this idea ever discusses what appears to be a fatal flaw in the basic idea: there is still no incentive for universities to lower their costs.

No reporting on this idea ever discusses what appears to be a fatal flaw in the basic idea: there is still no incentive for universities to lower their costs. They can still charge as much as they want for an english degree and the state pays them for it up front. The public is on the hook for the bill when the english major fails to get a job. EDIT: Just wanted to add that this is the sort of brain-dead reporting that allowed the student loan industry to essentially socialize loan losses by not permitting students to default on student loans and by allowing the federal government to guarantee them, subsequently allowing education costs to sky-rocket.