Companies Pay Unemployed Employees—Colleges Should Pay the Debt of Under-employed Students
Companies pay a portion of the unemployment benefits when they let an employee go. College’s should pay a portion of the debt repayment when a graduate asks for income-based repayment with a cap, similar to unemployment insurance.
Colleges Have No Skin In the Game of Student Outcomes
The student loan debt crisis in the United States has reached staggering proportions, with over $1.7 trillion in outstanding debt burdening millions of Americans. My idea involves shifting responsibility to colleges for making payments on student loans when graduates are unable to repay their debts due to insufficient income. This approach mirrors how businesses pay unemployment insurance and could realign the incentives within higher education.
Think about it. Companies pay a portion of the unemployment benefits when they let an employee go. Now, the college would pay a portion of the debt repayment when a graduate asks for income-based repayment with a cap, similar to unemployment insurance.
We are not looking to dismantle colleges just to put an incentive for them to push marketable skills and majors to their students.
Expensive Colleges Earn Tuition Upfront and Sometimes Ignore Student Employment Outcomes
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