STUDENT LOANS If you want to fix student loans, the incentives in the university

http://online.wsj.com/article/SB10001424127887324688404578541372861440606.htmlFIXING STUDENT LOANS

If you want to fix student loans, the incentives in the university system are currently perverse, and you can’t fix student funding without fixing university incentives.

1) zero interest. Any amount. Six total years of coverage. This process can be repeated every ten years for lifetime performance.

2) The amount is paid back as a payroll deduction over thirty years at fixed, x% of income . (This effectively reduces the student cost to zero, but doesn’t allow students to abuse it.)

3) Colleges and Universities must use 100% of the money for undergraduates ONLY for the undergraduate program, only for undergraduate departments, only for undergraduate teachers who teach, and many not use any for research, sports, or for their endowment. Undergraduate departments must perform as teaching departments not reserach departments, and all publication requirements for teaching professors must be removed. No exemptions or devices for circumvention in theory or practice. Limit administrative overhead costs to 20%. And that will take care of the economics of the system, and make sure our students have the best professors in the world.

4) Since all financial barriers are removed, then remove all quotas, and require domestic students receive full access prior to foreign students.

Most of these are Sowell’s ideas.