Your Nosebleed Student Loan Debt Pays The Tuition Of The Classmate Next To You
Career College Central Summary:
After writing about the myths surrounding higher education in the U.S., Mark Hendrickson, a contributor to Forbes, warns readers about colleges acting to redistribute wealth.
Recently, the Oregon legislature approved a plan that redistributes wealth. The plan will let students attend Oregon’s state universities at reduced expense, repaying the state of Oregon after they graduate. Repayments will be a certain percentage of their income.
In other words, Hendrickson writes, graduates who earn higher incomes will pay more for their college education than those will lower incomes. This plan passed both the Oregon House and Senate unanimously. He calls it a costly mistake.
In fiscal terms, during an era of stressed state budgets, Hendrickson writes it would have made more sense to reduce the taxpayer subsidy to state universities (i.e., state expenditures) rather than current tuition receipts (state revenues). He claims budget cuts would have induced university administrators to prune courses that make no economic sense and end up wasting taxpayer dollars.
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