Student Loan Caps Proposed in White House Higher Education Plan

[mahatmakanejeeves]

Source: Bloomberg Government

Student Loan Caps Proposed in White House Higher Education Plan
Posted March 18, 2019
By Emily Wilkins

The White House is urging Congress to set new limits on student loan borrowing by graduate students and parents, as part of a larger package spelling out the Trump administration’s priorities for higher education legislation.

The administration will present its priorities Monday afternoon as part of the agenda for the National Council for the American Worker, an advisory group tasked with ensuring future students and workers are prepared for the changes technology will bring to the workforce.

The priorities mark the first higher education policy outlines from the Trump Administration. They come as lawmakers on Capitol Hill are working to give the higher education law (Public Law 110-315) its first comprehensive update since 2008.
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Loan Limits

The White House follows in the steps of Republican lawmakers who say limiting the amount of federal student aid will lead colleges and universities to lower tuition.
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In Step with Regulations

Several of the proposals mirror regulations the Education Department is in the process of writing, such as easing the process for accrediting agencies to approve colleges for eligibility to receive part of the approximately $120 billion doled out annually in federal student aid.
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To contact the reporter on this story: Emily Wilkins in Washington at [e-mail]

To contact the editors responsible for this story: Paul Hendrie at [e-mail]; Jonathan Nicholson at [e-mail]

Read more: https://about.bgov.com/news/student-loan-caps-proposed-in-white-house-higher-education-plan/

[Shell_Seas]

1. The cap is $28,500 per student annually.

Really, it's a shame that it's even that high.

[caraher]

2. How about funding education?

I'm not sure what kind of magical thinking leads to the conclusion that capping loans will somehow make tuition lower. When tuition was lower at state colleges and universities the level of government support relative to tuition was much greater. The solution lies, in part, in reversing that trend.

[aggiesal]

6. Back in the 80's when I got my degree ...

Government subsidized 80% of the costs of a College education,
while the student paid only 20%.
Now it's completely flipped, where the student now pays 80%
and the government subsidizes only 20%.

I can't stand this much winning.

[Igel]

8. That was at state schools.

With state funding. Contact your state legislators and they'll say it's impossible.

[uppityperson]

3. How about lowering tuition instead?

[iluvtennis]

4. Agree. Combo solution would be optimal.

[PatrickforO]

5. Easing the process for accreditation is a move toward

more 'free market' privatization, so that fly-by-night schools like Trump U. can actually tap into this Federal source of profits. It is all about spreading the money around to more entities in the private sector without ensuring the quality of the education they are offering. It opens the way for more predatory capitalism.

As to limiting the amount of federal student aid leading to lower tuition, I believe it will instead lead to more cheaper but lower-quality private schools offering more and more questionable 'credentials.'

If we really wanted to help kids get good quality educations, we'd revisit state funding levels of state schools with an eye to increasing subsidized tuition funding so students and their families don't have to bear such a big load.

[0rganism]

7. "ensuring future students and workers are prepared for the changes technology will bring"

we pretty much scuttled that ship back in Nov. 2016

because Trump LOVES the uneducated and he LOVES him some clean coal (well not really, he just wants stupid mofos to support his desperate and unworthy ass, but it seems to be working)

[jmowreader]

9. It appears to me...

...that Trump wants to return to the days when jobs that required advanced degrees (physicians, lawyers, etc) were only for the elite.