New model for school funding that wont break the budget deficit
I've been hearing a lot about the need for reform of student loan funding for a while now. For many of us, it makes perfect sense that there should be an end to funding for college loan forgiveness. To do so, policymakers should be making the case that higher education is the single largest source of wealth creation in this country; that its primary mission is to provide opportunities for people to earn wealth; and that colleges should make funding available to students with low income.
The reality is that those arguments won't get anyone through the halls of Congress, let alone to their constituents. Congress, while not averse to raising the cap on student loans, has not acted on its responsibility to fix the system where high school students pay an astonishingly high amount of tuition.
The way a college loan should be paid
The biggest issue of our time is student loan debt: how much does it cost our students? And it's not just the cost of tuition that our students pay, but also, increasingly, the cost of student loans. While interest rates remain low, student debt loads are spiraling through the stratosphere, with a median household debt size reaching nearly $50,000 last year.
Over the last decade alone, student loan debt have grown by $3.9 trillion. And as we noted in our recent report, it costs every American nearly $50,000 a year (some $40,000 of which goes to student loan interest, according to the latest Bureau of Labor Statistics figures). That's a $50,000 increase in the cost of just three years of college.
Yet those who have been paying the cost of these loan payments for years are now getting smaller and smaller paychecks â€” in part because they're getting a bigger share of their income from debt to start with. As the National Bureau of Economic Research notes, while college education is now a critical step for almost everyone to take, it's still the largest pay source for a lot of families. And as students enter college more and more frequently for advanced degrees, it's clear that even the cheapest debt-free options will be difficult to come by if they're not repaid.
The cost of college education can't go on forever. So what should the government do?
Unfortunately, the answer is: they won't. That's because it's not fair to burden students with the costs of education, and we'll simply leave college debts as they are. As Harvard economist James Altucher put it last year in a paper that led to the College Scorecard, a new "college debt" is an obligation that arises when the government puts a price on college completion, and, because of the way tuition is calculated, that price is only ever met i
Us dollar falls on greenspan heart rumours (Financial Times)
Korean bank faces charges over corruption (Reuters)
Global fund manager admits to corruption in Asian fund buying (New York Times)
Chinese official is forced from position of post by new government after revelations of corruption (Guardian)
U.K. says $2 billion in illicit offshore assets linked to UK taxpayer (New York Times)
India: BSP's Mukherjee accused of 'betraying' voters (Financial Times)
"BJP leaders are the richest men in India" - Manmohan Singh to journalists in Delhi (Business Standard)
Vijay Goenka: The "most ruthless" minister to step down in 11 years (Raj Bhawan)
Indian company accused of allegedly "fraudulently" overcharging customers (Financial Times)
Unauthorized disclosure orders against 14 individuals (Indian Express)
GST evasion case: Delhi: BSP minister's $23.75 million bribe alleged (ANI)
Indian Express article from July 1
"Why did Modi come to power?" (PTI)
"Fired: BJP-NCP minister Jitender Singh Tomar accused of corruption at home" (HT)
The Indian media's reporting about Rahul Gandhi (Express News)
EKG says BSP minister's alleged bribe may have been 'illegal,' says Kishore Bambawal (PTI)
GDP-linked companies on high end of the tax ladder are banned in the US (The Washington Post)
India's chief court rejects demand for immediate release of seven convicts in tax evasion case (CNN)
Indian authorities open probe into bribery case involving BJP ministers (CNN)
JIT Secretary gets the sack in BSP minister's bribe case (CNN)
Congress MP in Uttar Pradesh takes a plea to Modi (HT)
How some Indian politicians make their money (The Economist)
Daughter of former MP sentenced to prison for embezzlement in Uttar Pradesh (The Times of India)
Manjhi's corruption trial ends (Reuters)
How India is trying to create a "model" tax regime for the world (Reuters)
In one year, Indians make $19.2bn from corruption (The Financial Express)
New Delhi: Corruption case against 12 people indicted (The Hindu)
New Delhi: A simple call to get corruption gone (AP)
Jitender Singh Tomar, minister responsible for tax administration, is the latest in a string of party politicians to be caught up in the graft investigations. One of them is the former minister. The other is the finance ministe