Sunday, August 28, 2022

The colleges' role in the student loan crisis

"Here is how the education industrial complex works.

 The universities spent $130 million lobbying to get this loan forgiveness done. The university needs money to pay for the vast overhead created by all the costs of the DEI staffs and the high operating overhead of all the amenities they now offer. 

So, they raise tuition, and then convince students to take out loans to cover the tuition which is really to cover their inflated operating budget. The student wants to attend, so they borrow, not understanding the economics of what they are doing. 

The government makes the loan with no assessment of ability to repay, or if the course of study is one that will provide a job paying enough to cover repayment. The school gets its operating costs covered by getting the students to borrow the needed working capital to operate the school. They then can put donations from rich guys who want their kid admitted, into their huge endowment which is just a giant investment portfolio. 

So now the university has gotten the student and the government to cover their operating costs, with zero liability to the university for the borrowed funds. It is magic. It is a total scam.

Meantime they have courses like gender studies, or others that have nil value to the student or employers when they graduate. So now the kid has no way to earn enough to pay the loan that financed the university operating budget. That is the reality of student loans. Universities are a corrupt cabal now destroying a whole generation with nonsense courses, and no free thought allowed. This will harm the nation for many years. This is one more example of why we are fighting the Amy Wax war. Between teachers’ unions and university corruption and ideology, we are in real trouble educationally."
(The Ross Rant, 8/27/22)

Comments on Amy Wax mentioned above: "On Dec. 20, Wax in an interview with Glenn Loury, a professor at Brown University, said that since “most” Asian Americans support the Democratic Party, “the United States is better off with fewer Asians and less Asian immigration.”

After backlash to those remarks, the University of Pennsylvania Carey Law School’s Dean Ted Ruger announced on Jan. 14 that he had initiated a faculty review process that could result in sanctions imposed on Wax." (Daily Princetonian, Jan. 27, 2022)

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