why stop at cutting financial aid for for-profit colleges? why not cut financial aid to non-profits?
The NY Times has a forum on a new regulation that would reduce financial aid to for-profit entities that have low student loan repayment rates:
Under a rule announced June 1, the Department of Education will cut off federal financial aid for any for-profit program if its graduates have a lot of student loan debt and low repayment rates. This effort to require the programs to yield “gainful employment” has angered private colleges as well as some education advocates who say minority students will be disproportionately harmed if the programs lose their eligibility for federal aid.
There’s a lot of higher education that won’t get you a job – arts, philosophy, and do so forth. Unless an institution is engaged in fraud, there’s little reason to pick specifically on for-profit institutions. We should really be asking tough questions about higher education finances in general. Maybe we should have rules barring financial aid for degrees that have horrible job prospects (see here). My goal isn’t to discourage able and committed people from college. Instead, I would like to see some sort of cost-benefit analysis added to the way that we charge people for education.