Sen. Josh Hawley To Introduce Legislation Putting Universities On The Hook For Student Debt

abby97

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This is how you deal with the student debt crisis-

Republican Missouri Sen. Josh Hawley will introduce legislation Wednesday that puts colleges and universities on the hook for student debt.

The bill was first obtained by the Daily Caller and is titled the Make the Universities Pay Act. The Legislation would require institutions of higher education participating in the Federal Direct Student Loan Program to pay 50% of any student loan balance that is in default.

The Make the Universities Pay Act would also allow student loan debt to be discharged in bankruptcy and allow undergraduate student loan debt to be discharged five years after the first payment is due, while graduate student loan can be discharged 15 years after the first payment is due. In addition, the bill requires each institution of higher education participating in federal financial aid programs to publish post-graduate outcomes, including mean and median earnings of graduates and student loan default rates, disaggregated by each degree or program of study.

The Biden administration is taking executive action to forgive $10,000 per borrower. The move would clear $321 billion of federal student loans and clear the student debt for almost 12 million people, according to CNBC.

Biden will also cancel up to $20,000 for Pell Grant recipients. (RELATED: EXCLUSIVE: ‘Crazy’ — Sen. Rick Scott To Release Ad Slamming Biden For Canceling College Loan Debt)



READ THE BILL HERE:


(DAILY CALLER OBTAINED) — … by Henry Rodgers

“For decades, universities have amassed billion-dollar endowments while teaching nonsense like men can get pregnant. All while charging extortionary tuition. Now Joe Biden wants to give away another $1 trillion to prop up the system. That’s wrong. Instead, it’s time to put universities on the hook and give students the information they need to make informed decisions,” Hawley told the Caller before introducing the legislation. (RELATED: EXCLUSIVE: House Republicans Introduce Four Separate Bills Aimed At Saving Taxpayers Money On Education)

Hawley plans on introducing the legislation later Wednesday afternoon.
 

Titus Andronicus

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It is about fricking time!

The schools making these loans knew they were not going to have to pay in the event of default. Hence, they loaned any amount to anybody. Some of the schools involved have millions and even billions of dollars in assets. This stuff should all be put at risk of foreclosure. They should never have been allowed to loan out "Other Peoples' Money."

They loaned it, they should guarantee it. ... and retroactively as well.

Senator Hawley must have read a few of my posts on HROT!
 
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UNCLawHawk

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I would take this bill more seriously if it didn't come from a guy that went to two of the most expensive schools in the world (Stanford and Yale for those who don't want to google). The fact is, Stanford and Yale have large enough endowments to keep teaching exactly what they are teaching and keep doing things exactly as they always have. The impact of this is going to be to bankrupt satellite state schools who have to take chances on riskier students.

Interestingly, I also think it will have a significant impact on a lot of private religious (mostly Catholic schools) like Marquette, DePaul, Xavier - that are extremely expensive for the education provided. My guess is the GOP isn't thinking of that.
 

mnole03

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Good schools won’t participate in the Federal Direct Student Loan Program. The bad ones will charge twice as much.
 
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tumorboy

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I would take this bill more seriously if it didn't come from a guy that went to two of the most expensive schools in the world (Stanford and Yale for those who don't want to google). The fact is, Stanford and Yale have large enough endowments to keep teaching exactly what they are teaching and keep doing things exactly as they always have. The impact of this is going to be to bankrupt satellite state schools who have to take chances on riskier students.

Interestingly, I also think it will have a significant impact on a lot of private religious (mostly Catholic schools) like Marquette, DePaul, Xavier - that are extremely expensive for the education provided. My guess is the GOP isn't thinking of that.
Liberty would seem to fall in the religious group. Josh might be hearing from them soon. Also another nail in the coffin for UNI.
 

Titus Andronicus

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I would take this bill more seriously if it didn't come from a guy that went to two of the most expensive schools in the world (Stanford and Yale for those who don't want to google). The fact is, Stanford and Yale have large enough endowments to keep teaching exactly what they are teaching and keep doing things exactly as they always have. The impact of this is going to be to bankrupt satellite state schools who have to take chances on riskier students.

Interestingly, I also think it will have a significant impact on a lot of private religious (mostly Catholic schools) like Marquette, DePaul, Xavier - that are extremely expensive for the education provided. My guess is the GOP isn't thinking of that.
It is time for a broad reordering of the world of higher education.

I suspect that the schools you highlighted have both the resources (Endowments), and the ability to raise money in the event of fallout from this bill. If not, I am guessing they have the ability to downsize by selling buildings, art collections, and real estate. Ultimately, those schools with religious affiliations should (hopefully) be backstopped by their particular denominations.

Mergers would be another option ... and of course, bankruptcy followed by reorganization or even liquidation. Notre Dame could step in and save any number schools, acquiring satellite campuses in the process.

Government should be a last resort, not a first resort.
 
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tumorboy

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It is time for a broad reordering of the world of higher education.

I suspect that the schools you highlighted have both the resources (Endowments), and the ability to raise money in the event of fallout from this bill. If not, I am guessing they have the ability to downsize by selling buildings, art collections, and real estate. Ultimately, those schools with religious affiliations should (hopefully) be backstopped by their particular denominations.

Mergers would be another option ... and of course, bankruptcy followed by reorganization or even liquidation. Notre Dame could step in and save any number schools, acquiring satellite campuses in the process.

Government should be a last resort, not a first resort.
Doubtful on the religious affiliation backing it up. State tax payers already pay at least half the bill for Catholic, Lutheran, etc primary through secondary education. A strong chunk of schools simply can't survive on private tuition and church support.
 

lucas80

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Don’t hate the idea; good place to start.

Despise who proposed it.
There certainly is room for reform. I just don't think it should come from a goose stepping charlatan with Stanford and Yale on his resume. Nothing says elite like Stanford and Yale, and then telling people who took out loans that they should have been, oh, I don't know, born wealthier.
 

BioHawk

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Way to take a reasonable idea and making it part of a broader solution to the student debt problem and politicize it to the point that it will be radioactive by the time anyone gets around to actually dealing with the issue. This, right here, is the exact bullshit that makes Republicans completely incapable of governing anymore. Everything has to be a dig, everything has to be a stab that causes pain to someone. Making Universities take ownership of the debt they cause is a very good way to make them better at managing costs. Of course, the issue for why they did that needs to be addressed as well, which is decreased funding for universities (guess which party is primarily responsible for that!).

But, now that Josh Hawley is using it to own the libs, I guess nothing will get done.
 
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Way to take a reasonable idea and making it part of a broader solution to the student debt problem and politicize it to the point that it will be radioactive by the time anyone gets around to actually dealing with the issue. This, right here, is the exact bullshit that makes Republicans completely incapable of governing anymore. Everything has to be a dig, everything has to be a stab that causes pain to someone. Making Universities take ownership of the debt they cause is a very good way to make them better at managing costs. Of course, the issue for why they did that needs to be addressed as well, which is decreased funding for universities (guess which party is primarily responsible for that!).

But, now that Josh Hawley is using it to own the libs, I guess nothing will get done.
Exactly. Potshots at “woke” universities make sure nothing is accomplished. They just can’t help themselves.
 

theiacowtipper

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Don’t like as written. You guys seem to have a stated goal of making colleges accountable for costs. What if a college gets costs down to 4k a year? They are still responsible for a default? Someone drops out after a semester because they discovered women and weed. The college is still responsible? You talk about huge endowments. Many schools don’t have them, especially community colleges.

The rising cost of college is multi factored and much of it is out of the hands of the schools.
 
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Don’t like as written. You guys seem to have a stated goal of making colleges accountable for costs. What if a college gets costs down to 4k a year? They are still responsible for a default? Someone drops out after a semester because they discovered women and weed. The college is still responsible? You talk about huge endowments. Many schools don’t have them, especially community colleges.

The rising cost of college is multi factored and much of it is out of the hands of the schools.
Yeah, looking at discharging in bankruptcy, publishing outcomes and other metrics, sounds good.

But I don’t understand why it’s a university’s responsibility to ensure loan repayments.
 
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theiacowtipper

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Much of the data he requests is already out there. Things like placement rates and graduation rates. That’s all reportable data currently. Cost of attendance as well. His attitude and blather is a politician being non productive and non helpful. Instead of a serious debate about serious issues, he talks about schools teaching students that men can get pregnant, which doesn’t happen. You can’t take something like this seriously.
 
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theiacowtipper

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Yeah, looking at discharging in bankruptcy, publishing outcomes and other metrics, sounds good.

But I don’t understand why it’s a university’s responsibility to ensure loan repayments.
I don’t agree with discharging in bankruptcy. I guess there’s two ways you can go. If it’s dischargeable, the interest rate should be comparable to risk. That will price a lot of students out of college. Trying to borrow even 10k a year as an 18 year old with no credit history would be impossible commercially unless guaranteed by the government. If you make it dischargeable it will end up being a huge burden on the feds.

A 22 year old graduates from nursing school at UI and owes 75k In student loans. He has no income. He could file chapter 11 the first day out of school and owe nothing. Why wouldn’t he? You can rebuild credit pretty fast.

Instead, the loans should be completely subsidized by the federal government, and limited by income and actual cost of attendance at a comparable state institution. Those loans should be interest free. Of you want to go to Grinnell, that’s fine, but you can only borrow what it would cost to attend Iowa. Those loans would be 100% interest free, remaining interest free after you graduate as long as you do graduate and do a payment plan. If you drop out you owe interest. If you stop paying you owe interest. The killer for repayment is not the principle it’s the interest.

Even if you borrow 60k, over ten years that’s only 500/month. That shouldn’t be a deal killer, especially at the end of the term.
 

IACub

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I've never underwritten a student loan, but from what I understand it's essentially approved if you attend a participating school and have at least a decent credit score. These are the guidelines that the lender set up and approved by the government when they subsidized these loans. Explain to me how schools are acting in bad faith working with students to get these loans to pay for their education.
 

luvmyhawks

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Much of the data he requests is already out there. Things like placement rates and graduation rates. That’s all reportable data currently. Cost of attendance as well. His attitude and blather is a politician being non productive and non helpful. Instead of a serious debate about serious issues, he talks about schools teaching students that men can get pregnant, which doesn’t happen. You can’t take something like this seriously.

Eh, not really. Nothing wrong with full disclosure. You could consider it a way for colleges to cover their ass. Have them sign a truth in education document as they are taking out a loan.
 

luvmyhawks

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I don’t agree with discharging in bankruptcy. I guess there’s two ways you can go. If it’s dischargeable, the interest rate should be comparable to risk. That will price a lot of students out of college. Trying to borrow even 10k a year as an 18 year old with no credit history would be impossible commercially unless guaranteed by the government. If you make it dischargeable it will end up being a huge burden on the feds.

A 22 year old graduates from nursing school at UI and owes 75k In student loans. He has no income. He could file chapter 11 the first day out of school and owe nothing. Why wouldn’t he? You can rebuild credit pretty fast.

Instead, the loans should be completely subsidized by the federal government, and limited by income and actual cost of attendance at a comparable state institution. Those loans should be interest free. Of you want to go to Grinnell, that’s fine, but you can only borrow what it would cost to attend Iowa. Those loans would be 100% interest free, remaining interest free after you graduate as long as you do graduate and do a payment plan. If you drop out you owe interest. If you stop paying you owe interest. The killer for repayment is not the principle it’s the interest.

Even if you borrow 60k, over ten years that’s only 500/month. That shouldn’t be a deal killer, especially at the end of the term.

This is solid as well. Any of this is better than the way things currently are. Hopefully this is something they actually start to take seriously so we aren't just forgiving debt all the time. Let's get something more sustainable long term in action.
 

luvmyhawks

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I've never underwritten a student loan, but from what I understand it's essentially approved if you attend a participating school and have at least a decent credit score. These are the guidelines that the lender set up and approved by the government when they subsidized these loans. Explain to me how schools are acting in bad faith working with students to get these loans to pay for their education.

Maybe by telling students they have high placement rates and income opportunities when graduating with a degree from their university when it is in fact, not true.
 
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theiacowtipper

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I've never underwritten a student loan, but from what I understand it's essentially approved if you attend a participating school and have at least a decent credit score. These are the guidelines that the lender set up and approved by the government when they subsidized these loans. Explain to me how schools are acting in bad faith working with students to get these loans to pay for their education.
To get a federal student loan I don’t think there is any credit score requirements. I know a student who got a guaranteed student loan a month after bankruptcy.
 

theiacowtipper

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Eh, not really. Nothing wrong with full disclosure. You could consider it a way for colleges to cover their ass. Have them sign a truth in education document as they are taking out a loan.
I know graduation rates are required. Cost of attendance is as well. I’m not sure average amount borrowed is. Placement rates are very difficult to calculate. Does only in career path count? For instance, I know an engineer who is working full time as a firefighter paramedic. Does that count as placement from the engineering school at ISU?
 

luvmyhawks

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I know graduation rates are required. Cost of attendance is as well. I’m not sure average amount borrowed is. Placement rates are very difficult to calculate. Does only in career path count? For instance, I know an engineer who is working full time as a firefighter paramedic. Does that count as placement from the engineering school at ISU?

Well, I think most are aware there is intrinsic value in a 4 year degree such as just being able to get your foot in the door to certain companies, careers, etc.. which in and of itself is valuable. So probably more along the lines of a specific career path. Also, maybe just average starting salary for a job in a specific field/degree should be required as well. For example. Philosophy or psychology, Fascinating subjects to study, but are you aware, outside of having a 4 year degree, not a whole lot of jobs unless you pursue a masters or doctorate program. I don't know the answers, but something has to be done. I don't think having the universities on the hook and requiring full disclosure is such a bad thing.
 

ping72

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I don’t think many know the pressures on public universities to accept more in-state students.

Secondly, this will obviously make tuition continue to rise.
 

abby97

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In modern society we love to hold everyone and anyone responsible for any perceived slight or claim we might imagine, thus the cancerous proliferation of ambulance chasing trial attorneys in this country, yet we somehow give colleges and universities a pass. They charge a king's ransom to "educate" our youth despite the fact that much of what the teach is insufficient or irrelevant and doesn't prepare graduates for life in the private sector. They also offer degrees in gender studies, philosophy or French abstract art and demand top dollar for the experience.

Maybe a system that holds the colleges financially responsible to actually provide a proper education would actually encourage reform.
 

CLUB215

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1) acceptance rates will go down as schools only admit good students who will most likely succeed. Risky to take on sub optimal students. This goes against my idea of a more educated America.
2) I am 100% on board with bankruptcy options for student loans.
 
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Feb 9, 2013
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In modern society we love to hold everyone and anyone responsible for any perceived slight or claim we might imagine, thus the cancerous proliferation of ambulance chasing trial attorneys in this country, yet we somehow give colleges and universities a pass. They charge a king's ransom to "educate" our youth despite the fact that much of what the teach is insufficient or irrelevant and doesn't prepare graduates for life in the private sector. They also offer degrees in gender studies, philosophy or French abstract art and demand top dollar for the experience.

Maybe a system that holds the colleges financially responsible to actually provide a proper education would actually encourage reform.
Who defines proper education? People should be able to pursue whatever degrees they want to, and educational institutions should be able to provide those options.
 

DPUboiler

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It is time for amending the US Code to allow for bankruptcy of student loans. However, the idea that schools should be on the hook would have disasterous consequences. 18 schools have an endowment over 10 billion dollars. All 18 of those schools don't need tuition, or could easily say free tuition for households under $250K annually and the rest must pay out of pocket with no student loans. There are roughly 120 universities with endowments between 1 billion and 10 billion that could handle this, but would likely take some sort of action. So that's 138 universities. Every other school would either have to increase tuition to an extent they self insure themselves, or would likely not survive having to repay some of this debt. That's like basically every medium sized liberal arts school, secondary state school, community college, etc... It totally would create a caste system where the very best students went to the very best colleges (they becoming even more competitive) and nothing for the rest.
 
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onlyTheObvious

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If the biggest portion of debt is for profit colleges then cut them off totally.

private colleges should be on hook for government loans.

never loan more than the cost of junior college for two years. Then never more than in-state public university for final two years. Want more? That’s on you.

if this was the formula we wouldn’t have a mess.
 
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HawkRCID

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I think he’s an awful person…but I don’t necessarily hate this idea.

Making them dischargeable in bankruptcy is a big step in the right direction. And getting rid of secondary state schools and many private institutions would be wins for schools like Iowa…creating less competition for a increasingly smaller number of applicants.
 

sober_teacher

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To some extent I see where this is coming from but I need more info on how you would define a university being on the hook for a student loan.

I mean, stuff like discontinuing a program/dept that a student was in, leading to student having to transfer and causing a delay in graduating, sure. Selling a bill of goods on what their university offers? Sure. Not providing full information on what’s offered for a program? Sure.

Would like a clear definition of what’s the students responsibility vs university‘s. Don’t have a ton of confidence in hawley regarding that however.
 

luvmyhawks

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Who defines proper education? People should be able to pursue whatever degrees they want to, and educational institutions should be able to provide those options.

‘Who said they can’t? They should just be well informed what their job prospects, costs, salaries, etc… are before deciding on said degree. If not, the college should be on the hook for it.
 

onlyTheObvious

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Wouldn't it be easier for states to just adequately fund their universities? It worked really well for a long time before it was done away with and turned political.
I agree. We need more indoor water parks and shopping mall food courts in our public universities.

total number of employees at each school now vs 30 years ago would be interesting and compare that to credit hours taught. Going to have to prove to me they are not bloated with “administration”.
 
Feb 9, 2013
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‘Who said they can’t? They should just be well informed what their job prospects, costs, salaries, etc… are before deciding on said degree. If not, the college should be on the hook for it.
Agree 100% with that. More disclosure requirements would be great.

Maybe I misunderstood what he was getting at by saying universities should provide a “proper education.”
 

abby97

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Who defines proper education? People should be able to pursue whatever degrees they want to, and educational institutions should be able to provide those options.
I agree, however with Biden's vote buying scheme you and I and everyone else are paying for college students to pursue these useless extravagances. Everyone should be able to study what they want but when people decry the student loan crisis and lazy entitled brats expect everyone else to pay for their unemployment insurance, healthcare, rent assistance, and loan forgiveness that's where the problem begins. Study what you want but don't demand everyone else pay for your decisions.
 
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