Comments on: The Senate Can Strengthen Student Loan Accountability—Here’s How

By: Dennis Schroeder

Dennis Schroeder — Thu, 29 May 2025 18:03:46 +0000

Thank you, Mr. Gillen, for this insightful breakdown of the options available to Congress (and whichever federal department is left to administer and regulate) for creating accountability in the federal student loan programs. As a financial aid administrator at a low-cost community college, having few details in the reconciliation bill (and analysis by organizations like NASFAA), I fear “skin in the game” could hasten schools like mine exiting the federal loan programs. With 1% of my total student population receiving loans (less than $1M for the current academic year), and potentially higher CDRs than many 4-year non-profit and public universities, even a seemingly small amount of “skin” (i.e., money required from the school to cover portions of defaulted loans) could be beyond what my kind of college is able to and willing to bear. I hope to see more on this topic as the recon bill makes its way to the finish line, and I hope the regulators see fit to consider the consequences (intended and unintended) on all segments of higher education.

By: Dr. Ed

Dr. Ed — Wed, 28 May 2025 18:28:17 +0000

In reply to Dr. Ed.

The reason for the need of adjusting for children is that the colleges do not have an equal percentage of their female graduates becoming mothers.

Both conservative and religious institutions (which also tend to be the same) have a higher percentage of their female students getting married and starting families after graduation. And we *need* educated mothers having children, both to carry on the culture and to fund Social Security, and education provided to the mother of children is not inherently wasted.

But the ROI isn’t going to show up for a generation, and even then likely not directly attributable to her education. So we have to somehow account for this.

By: Dr. Ed

Dr. Ed — Wed, 28 May 2025 15:08:53 +0000

1: Fairness mandates that some community colleges and HBCUs *BE* hit hard.
It’s sad, but some (not all) HBCUs are woefully mismanaged and (like much of passenger rail) can not be justified in the 21st Century. Not under current management, not with current model.

Are some HBCUs now largely remedial high schools? Fine — but treat and evaluate them as such. (They be MORE needed as that…)

2: Women in their 20s get pregnant. Many get married first and leave the workforce for 10-20 years, and return in their 40s, others work part-time when their children are young.
Unless you account for this, you will penalize conservative and Christian colleges.

3: How do you deal with trophy wives? A student may graduate from, say, Mt. Holyoke with a rich husband and no income of her own. Her loans are repaid, but her ROI?

4: I’d love to see colleges liable to the student for ROI.
Name one other large purchase that doesn’t come with a warranty.