REFORMATION OF THE STUDENT LOAN SYSTEM The solution I usually advocate, given wh

REFORMATION OF THE STUDENT LOAN SYSTEM

The solution I usually advocate, given what I have learned both from Sowell’s work and the evidence coming in over the past decade, is first, that we should force universities to obtain payment as a deduction from payroll over some number of years, at a maximum of ten percent – with the treasury providing the loans. And in doing so require that administration costs are under twenty percent, and that all increases in their endowments come from contributions.

Secondly we must separate graduate school research faculty from undergraduate teaching faculty. Without this structure the perverse incentives of the Academy/State/Media complex will persist in privatizing vast amounts of social wealth without warranty of future value.

The Academy is the largest industry not required to provide warranty on basic goods and services. And like any business that can circumvent warranty, it does so profligately.

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