Under federal rule, colleges must leave grads better off or lose financial aid
37 points
1 hour ago
| 14 comments
| npr.org
| HN
janalsncm
50 seconds ago
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> But this new test, known as "do no harm," raises some thorny questions about the purpose of college. Like: Is it just about making more money?

If this is a fair question to ask students, then it is a fair question to ask the schools as well. They are the ones charging enormous amounts of money to students for this.

This doesn’t prevent people from learning to paint or play the clarinet. It prevents students from taking out enormous loans for it.

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CircuitSeuss
3 minutes ago
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Gut feeling here is that this is going to result in significantly lower higher ed enrollment, and therefore a less educated populace.

We do not teach history or ethics, or much in general to our pipeline welders, but they make bank. Meanwhile our well educated teachers are paid nearly nothing. Both are needed (teachers arguably more so).

Less federal aid means fewer students can afford our insanely expensive educational system. This will pull up the ladder on the younger generations.

We need a solution that both increases educational access and quality everyone regardless of their career path, while also lowering tuition costs. This does not achieve that.

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theahura
4 minutes ago
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imo this is pants on head backwards. The whole problem with the current university system is that it has become exclusively a credentialing system that everyone uses to justify higher salaries. We’ve completely left the education part of it by the wayside…except for the liberal arts majors who are actually there just to learn! This rule is just encoding the existing tulip mania into federal law directly, by making it clear that the ONLY reason one goes to school is for future $$$
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hankbond
48 minutes ago
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I feel like I have not really heard a compelling reason why student debt should not be dischargeable thru bankruptcy like (afaik) all other forms of debt. I am curious what the ramifications would be if higher education institutions had to (in some form) co-sign the debt being issued.

I do get that not all education should be purely for economic reasons, but as an autodidact I feel that "learning for the sake of learning" does not need to come with the prices that people are paying for degrees.

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dataflow
37 minutes ago
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> I feel like I have not really heard a compelling reason why student debt should not be dischargeable thru bankruptcy like (afaik) all other forms of debt.

According to Reddit [1] it was to discourage students from immediately declaring bankruptcy upon graduation.

I don't see why they couldn't have put a time limit on it though, if that was the reason. Say you can't declare bankruptcy for 7 years after you leave school.

[1] https://www.reddit.com/r/StudentLoans/comments/ufejjg/why_ca...

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theahura
1 minute ago
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> There is no evidence that students were actually doing this in any significant numbers.

premature optimization is the root of all evil. Seems like we shouldve actually shown that kids would do that before putting it into law

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nibbleyou
27 minutes ago
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I feel the interests would rise to accommodate for all the bankruptcies that inevitably happen exactly 7 years after
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jjav
21 minutes ago
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If bankrupcy is allowed some reasonable number of years later (not sure if that is 7 or 10, but some reasonable time) then if your education worked out and you're in a good career path and maybe close to buying a home, etc, declaring bankrupcy would probably hurt more than help.

OTOH if you're still poor after those years and don't care about consequences of bankrupcy then maybe that's fair enough to wipe out the debt since the education clearly didn't provide value.

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tbrownaw
22 minutes ago
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I would think that in this case, credit would mostly go to people expected to not have negative net worth after that 7 year limit.
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throw2ih020
40 minutes ago
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What would stop graduates from declaring bankruptcy early in their careers to discharge their debt, before they use their education to build a lifetime of earnings and assets?
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chacha102
38 minutes ago
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I'm all for "learning for the sake of learning", but the federal government doesn't need to subsidize it. Losing federal aid is not the same as not permitting colleges to run the programs at all. Supply/demand is still alive and well.
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dyauspitr
11 minutes ago
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Because then the normal thing to do would be graduate, declare bankruptcy when you have nothing to lose in life because you are just starting out, work for 7 years and you’re in the clear by your late 20s. Everyone would do it.
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dataflow
30 minutes ago
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> If a program cannot show that it leaves its graduates financially better off than if they had never enrolled, it should not be underwritten by federal taxpayers

Wouldn't this punish a huge number of students who struggle academically, by comparing them against better-achievers who simply skipped school?

The two populations being compared are entirely different for a lot of schools. Just because the average student skipping college does better than the average student attending a particular college, that doesn't mean the average one that attended college would've done as well as the average one that skipped.

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bruce511
9 minutes ago
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It's much more complicated than that.

>> If an undergraduate program's graduates don't earn more than workers who never went to college,

Lots of things affect earnings. Obviously education is one of them, but it's not the only one.

Location, economic environment, social status, personal network - all are factors. In other words comparing unequal things leads to unequal results.

For example, a first-generation college attendee gets a solid job working at a non-profit helping others. Someone else in the same town goes straight into Dad's profitable factory as a manager.

Of course those might be outliers. We can use statistics to smooth things. But equally we can use statistics to show anything we want.

Yes, there are lots of really crap colleges. There are colleges that specialize in nonsense degrees in useless subjects. (English Poetry you say? Hah. Poets never made any money...)

But equally there are lots of community colleges, taking in marginal students, giving them opportunities where others won't. Some, maybe most, of those students won't make it. But some will.

The effect of a rule like this is that colleges are forced to game the system. To exclude those who might fail. To reduce social mobility.

A cynic might even suggest this is the real goal of the rule to begin with.

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3eb7988a1663
3 minutes ago
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Also unclear how it works for the PhD pipeline. If you roll straight from bachelor's to a doctorate program - you have abysmal earnings for the next 5-6 years of your life.
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quadrifoliate
13 minutes ago
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> Wouldn't this punish a huge number of students who struggle academically, by comparing them against better-achievers who simply skipped school?

Why would it not just compare them to the average person who skips school, which can be a combination of better and worse achievers? Is there some part I'm missing where the academically struggling are selectively compared to elite school-skippers?

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tbrownaw
7 minutes ago
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I read the parent comment as claiming that some colleges select student bodies that are on average worse than the average of people who don't go to college at all.
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riddlemethat
5 minutes ago
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Do those students deserve lifelong debt they cannot discharge?
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nashashmi
10 minutes ago
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It would definitely punish hosting degree programs that have poor career prospects and outcomes.
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stevenalowe
7 minutes ago
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I'm all for informed consent - publish the data - but leave the choice to the individual. The goal of education is self-improvement, not necessarily/only money.

The way student debt is (mis)managed is a different issue.

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anon291
5 minutes ago
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I agree with you on the goal of education. But whats the goal of government education subsidies?
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theahura
2 minutes ago
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> whats the goal of government education subsidies

a more educated populace is a public and civic good on its own terms. Public funding for education is maybe partially for economic returns, but is mostly because education is a necessary part of a functioning democracy and a necessary part of living a good fulfilling life

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anon291
43 seconds ago
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Shifting the goalposts. For most of american history a high school education was considered sufficient to be part of a functioning democracy. If a music education (or whatever) is required to be part of democracy, then everyone should have it.
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stevenalowe
1 minute ago
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To help people get the education that they want. Not pick winners/losers.
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quadrifoliate
45 minutes ago
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Hopefully this will revamp the educational system in such a way that the pejoratively named "trade schools" can confer bachelor's degrees on their graduates as well.

I don't really see why some no name university can confer a bachelor's in some bullshit field, but the respectable local trade school cannot confer a bachelor's in plumbing. They honestly have more of a right to do so.

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tbrownaw
27 minutes ago
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> pejoratively named "trade schools"

That's an accurate name, and only seems pejorative if you see learning a trade as lesser than studying academics.

> name university can confer a bachelor's in some bullshit field, but the respectable local trade school cannot confer a bachelor's in plumbing

This misunderstands what the different kinds of credentials are.

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quadrifoliate
16 minutes ago
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You're hiding behind semantics.

Why should there be a difference in the degree being conferred at all? And if so, why not split off the departments that confer degrees with a low-earning potential and call them "entertainment schools" or something?

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delichon
36 minutes ago
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A baccalaureate is an academic degree, which is not what trade employers are looking for. They want certifications and licenses.
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quadrifoliate
19 minutes ago
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Licensing and degrees are not mutually exclusive. Plenty of engineers take licensing exams (CS degree holders are a large exception).
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bluefirebrand
27 minutes ago
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They usually need their employees to have certifications and licenses, by law.
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dyauspitr
7 minutes ago
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What’s pejorative about the term trade school? Also the difference is a bachelors degree is conferred to people that have had a well rounded education, not a 6 month course on a highly specific niche.
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ashton314
19 minutes ago
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This is not great. The purpose of higher education is not to get you a job. That's certainly a nice side-effect and I hope that all my students will be able to support themselves through good employment. The university is there to educate you, not train you. It's to turn you into a better thinker, a better person, and someone more capable of living well.

Making art and humanities programs demonstrate some kind of pecuniary benefit is disgusting and myopic. My wife pursued English because she loves writing. She's earned about 0 dollars from that degree because she's home with our kids. And that's OK! Our lives are so much richer because of her degree—as well as the classes I took from the English department. So we should penalize the humanities because it merely makes people better thinkers and doesn't have as high of an ROI as an MBA? Yuck!

(EDIT: the article does mention that this bar is low—so not too bad—but the fact that this is a metric and criteria in the first place opens this up to abuse in the near future.)

I get that it's intended to cut down on ballooning tuition and fees, but *this is not the right way to do that.* (Actually, if we eliminated half the administration, I wonder how much we could cut costs…)

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EPWN3D
51 minutes ago
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Holy shit this is a great idea. I get the complaints about the arts, but colleges have enjoyed essentially unlimited patience for larding up their programs with extra fees, bullshit credit requirements, and more, for decades.

I don't personally think that efficiency should be the primary concern of colleges, but it should be a concern, and it just plain hasn't been for ages. And that indulgence has been cloaked in specious, ivory-tower claims about producing well-rounded students. "You can't complain about being require to take a 100-level history course because our job is to turn out renaissance scholars who can debate philosophy at cocktail parties before going to work doing something that has absolutely nothing to do with that."

All the while, those additional credit hours cost students a shitload of money and debt and take focus away from their actual fields of study.

Colleges and universities need a kick up the ass to make them actually give a shit about outcomes for their students. I'm not going to cry that they're getting one.

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zmgsabst
3 minutes ago
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Engineers are part of the petite bourgeoisie so they need to speak appropriately to the monied class.
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ashton314
15 minutes ago
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> "You can't complain about being require to take a 100-level history course because our job is to turn out renaissance scholars who can debate philosophy at cocktail parties before going to work doing something that has absolutely nothing to do with that."

> All the while, those additional credit hours cost students a shitload of money and debt and take focus away from their actual fields of study.

This is a straw-man. The purpose is not to turn people into renaissance scholars. It's to inculcate appreciation for what makes life worth living. An educated populace is also a requirement for a healthy democracy. Everyone ought to know some history at a minimum.

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user3939382
23 minutes ago
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Clock hour schools have been held to this standard forever. It’s called gainful employment. It was always bullshit that credit hour schools didn’t have this standard, as if it was 1930 and colleges were here to help us think thoughts rather than as part of the jobs pipeline.
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amazingamazing
1 hour ago
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Easy, make non college folks worse off.
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b3ing
1 hour ago
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With all the layoffs I wonder how that will turn out
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galkk
32 minutes ago
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This is great. Those bullshit degrees are example of externalising costs and capturing profits.

Although, unfortunately, I suspect that this will be gamed by things like “this is super unique diploma” and there are no pros on market yet. Rotate that every 5 years and voila. I’m sure that every smart people are already thinking about schemes much more elaborate

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reenorap
1 hour ago
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This is wonderful. Hopefully this is an extinction level event for all of the toxic degree factories that were created just to take advantage of the non-dischargeable student loans. US tuition almost tripled in the last 15 years but the quality of education didn’t triple.

Trump himself took advantage of this by creating Trump university which was a for-profit degree mill.

All of those “schools” needs to be wiped off the map and hopefully get replaced by schools that show real value.

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delichon
51 minutes ago
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TrumpU was never eligible for federal funds of any kind, including students loans, as it never sought accreditation.
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