The government is still subsidizing college bureaucracies with student loans

Published December 16, 2018 1:00pm ET



Education Secretary Betsy DeVos caved on Thursday, agreeing to cancel $150 million in student loan debt in line with an Obama-era policy she previously tried to fight off. The specific debtors to whom DeVos finally succumbed qualified for “closed school” loan discharges, or those who attended failed, fraudulent private, for-profit colleges. While these debts were attributed to a specific, dying breed of colleges, the greater effect of student loans across colleges, public and private, nonprofit and for-profit, remains.

Federal financial aid and student loans in particular will continue to act as a piggy bank for bloated campus bureaucracies, and their tuition pricing can continue to spiral out of control.

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