Student Funding Ideas
So Democrats are proposing to cut interest on student loans. Color me unimpressed. It is just another way for them to throw money at a problem. What we need is a conservative, market-based solution. We already have half in place through student loans. Those loans, however, need to be tied to results. The federal government can still guarantee that students will get loans and interest rates can be lower than other loans, but the interest should be tied to loan repayment rates of each individual university and (possibly) majors at each institution. This will give feedback to students and should weed out the weaker educational establishments. Another idea for student funding would follow a familiar business practice: the stock market. Student stocks will be sold again based on university and major. We could even have mutual funds for the ivy league or groups of majors like engineering. In return for funding students would be required to pay a percentage of their earnings (based on gross income in tax returns) for a specified number of years back to the stock holders. This dividend is payable whether their job is based on their education or not. Students would not have to worry about being dragged into debt because it is based on earnings, not anything they "owe". Of course there are a lot of details to be worked out, but the market would only be regulated by the government and not funded by it.