In addition to debt forgiveness, Biden vows to crack down on colleges 'jacking up costs' and causing student debt to spiral

Morrison71

HR Legend
Nov 10, 2006
15,572
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President Joe Biden may have announced "one-time" broad student-loan forgiveness, but it's not the end of the road.

While the White House confirmed last week's announcement of up to $20,000 in student-loan forgiveness for Pell Grant recipients and other federal borrowers will be the only blanket student-loan relief borrowers will be getting, it also detailed plans to continue tackling student debt and higher education costs after debt cancellation is implemented.

"As a part of my announcement to get relief to Americans with student debt, I'm holding colleges accountable for jacking up costs without delivering value to students," Biden wrote on Twitter on Monday. "My predecessor looked the other way. My Administration is taking them on."

"We've terminated college accreditors that allowed colleges – like ITT and Corinthian – to defraud borrowers," he added. "@usedgov will also publish an annual list of colleges that leave students with unmanageable debt so that students can avoid these programs."

According to a White House fact sheet on Biden's loan forgiveness, the Education Department will "also propose a rule to hold career programs accountable for leaving their graduates with mountains of debt they cannot repay, a rule the previous Administration repealed."

The colleges Biden referred to are largely for-profit institutions that have been scrutinized over misleading students and causing them to take on more debt than they can afford to pay off. Leading up to Biden's broad student-loan forgiveness, the Education Department took a number of steps to help those students by approving borrower defense claims — claims a borrower can file if they believe they were defrauded by a for-profit school — that ran up a backlog under former Education Secretary Betsy DeVos.

Most recently, for example, the department approved group discharges for remaining students that went to ITT Technical Institute and Corinthian Colleges, two of the biggest for-profit players accused of defrauding its students. In addition, as the president referenced, the department stripped ACICS — the agency that accredited for-profits like ITT — of its federal status, making a move to enforce stricter guidelines over institutions that allocate federal student aid.

While the department has called out the previous administration for failing to implement meaningful relief for student-loan borrowers, DeVos would beg to differ. After Biden's announcement last week, she called the move "100% illegal," citing the memo she produced for former President Donald Trump that concluded he did not have the authority to cancel student debt.

Still, Biden and his administration maintain the legal standing is there, and they will continue pursuing reforms to higher education through the regulatory rulemaking process.
 
Oct 25, 2020
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A step in the right direction but the state school I went to went from just over 5k a semester for tuition, room and board my freshman year to offering it at about 10k a semester the year I left. My school offered a 4 year guarantee on tuition cost where you paid the same per hour for 4 years before you’d see the raise in price. Room and board went up every year if you stayed in dorms but that’s more than understandable.

I should have lived in dorms for four years. living in a house with friends was a good time but it was expensive. I probably averaged 4 hours of sleep during the week between studies, partying and working 40 hours a week. worked 6pm to 3am every Friday and Saturday night and got 8 on Sunday so that was most of my hours. We ate like garbage most of the time living off campus, I got all of the expired breadsticks, pepperonis, and pastas from the Pizza Hut I delivered for so that subsidized the food budget but was mostly carbs.
If you have good friends that live off campus you can go to the party house and not have to do all of the cleaning or get your stuff stolen and broken.
 

JupiterHawk

HR Legend
Jan 6, 2005
16,472
23,789
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Jupiter, FL
A step in the right direction but the state school I went to went from just over 5k a semester for tuition, room and board my freshman year to offering it at about 10k a semester the year I left. My school offered a 4 year guarantee on tuition cost where you paid the same per hour for 4 years before you’d see the raise in price. Room and board went up every year if you stayed in dorms but that’s more than understandable.

I should have lived in dorms for four years. living in a house with friends was a good time but it was expensive. I probably averaged 4 hours of sleep during the week between studies, partying and working 40 hours a week. worked 6pm to 3am every Friday and Saturday night and got 8 on Sunday so that was most of my hours. We ate like garbage most of the time living off campus, I got all of the expired breadsticks, pepperonis, and pastas from the Pizza Hut I delivered for so that subsidized the food budget but was mostly carbs.
If you have good friends that live off campus you can go to the party house and not have to do all of the cleaning or get your stuff stolen and broken.
I don't get how state schools are not-for-profit. Someone is profiting.
 
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Joes Place

HR King
Aug 28, 2003
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President Joe Biden may have announced "one-time" broad student-loan forgiveness, but it's not the end of the road.

While the White House confirmed last week's announcement of up to $20,000 in student-loan forgiveness for Pell Grant recipients and other federal borrowers will be the only blanket student-loan relief borrowers will be getting, it also detailed plans to continue tackling student debt and higher education costs after debt cancellation is implemented.

"As a part of my announcement to get relief to Americans with student debt, I'm holding colleges accountable for jacking up costs without delivering value to students," Biden wrote on Twitter on Monday. "My predecessor looked the other way. My Administration is taking them on."

"We've terminated college accreditors that allowed colleges – like ITT and Corinthian – to defraud borrowers," he added. "@usedgov will also publish an annual list of colleges that leave students with unmanageable debt so that students can avoid these programs."

According to a White House fact sheet on Biden's loan forgiveness, the Education Department will "also propose a rule to hold career programs accountable for leaving their graduates with mountains of debt they cannot repay, a rule the previous Administration repealed."

The colleges Biden referred to are largely for-profit institutions that have been scrutinized over misleading students and causing them to take on more debt than they can afford to pay off. Leading up to Biden's broad student-loan forgiveness, the Education Department took a number of steps to help those students by approving borrower defense claims — claims a borrower can file if they believe they were defrauded by a for-profit school — that ran up a backlog under former Education Secretary Betsy DeVos.

Most recently, for example, the department approved group discharges for remaining students that went to ITT Technical Institute and Corinthian Colleges, two of the biggest for-profit players accused of defrauding its students. In addition, as the president referenced, the department stripped ACICS — the agency that accredited for-profits like ITT — of its federal status, making a move to enforce stricter guidelines over institutions that allocate federal student aid.

While the department has called out the previous administration for failing to implement meaningful relief for student-loan borrowers, DeVos would beg to differ. After Biden's announcement last week, she called the move "100% illegal," citing the memo she produced for former President Donald Trump that concluded he did not have the authority to cancel student debt.

Still, Biden and his administration maintain the legal standing is there, and they will continue pursuing reforms to higher education through the regulatory rulemaking process.

What's there to "crack down" on?

Simply require EVERY online and private and public institution underwrite the loans of the students who attend and use those loans for tuition.

When they have to underwrite their own "product", they will be more cautious about it; and require them to hold enough money to cover in endowments or whatever, so they cannot declare bankruptcy to clear their loan "debts" if students default.
 
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desihawk

HR Heisman
Oct 1, 2002
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What's there to "crack down" on?

Simply require EVERY online and private and public institution underwrite the loans of the students who attend and use those loans for tuition.

When they have to underwrite their own "product", they will be more cautious about it; and require them to hold enough money to cover in endowments or whatever, so they cannot declare bankruptcy to clear their loan "debts" if students default.
i like this but it won’t happen obviously and if it does the number of majors will reduce by 90% which might be going too far