Ben Carson: Make colleges responsible for student loan interest

Published November 23, 2015 7:04pm ET



At a recent campaign stop in Iowa, Ben Carson took the moment to expand on his opinions about higher education reform.

At St. Ambrose University in Davenport, Iowa, Carson took questions from voters on college debt, according to KWQC.

“Make the student responsible for the principal and the colleges and universities responsible for the interest,” Carson said. “That would have a profound effect on them.”

Concerned about increasing student loan debt, Carson saw colleges admitting students regardless of how much in loans they took as part of the problem.

The idea to make colleges financially responsible for student debt isn’t a new one. Though splitting principal and interest between the student and the university isn’t the usual recommendation, some members of Congress have considered holding colleges financially responsible for student loan defaults.

In May, for instance, the Senate Committee on Health, Education, Labor & Pensions held a hearing to examine the idea. That would add accountability to colleges by making them responsible for a fee, a percentage of the defaulted loan, or another financial penalty, according to Marketplace.

Those penalties could make colleges more cautious about accepting applicants who require large amounts of loans or are less likely to graduate.

While stricter standards could lower overall student debt levels, that could limit access to higher education. Four-year universities have varying levels of selectivity already, but community colleges operate with an open admission policy that accepts any student.  Some have called that approach a cruel hoax, where unqualified students enroll, amass debt, then drop off without a degree. Stricter standards could help those students avoid financial insecurity, but it would require a transformation of a democratic access-for-all ideal in higher education.

The Department of Education already penalizes colleges for high sustained default rates or financial mismanagement, sometimes by revoking access to federal funding, which includes student loans.

Carson did not go into further detail for his plans to address college debt. His previous comments on investigating colleges for “extreme political bias” have sparked concern over his approach to higher education.