One of the key topics being discussed is the forgiveness of college loans – a huge debt wiped clean.
Note: this is not an article about politics. Instead let’s look at this issue with a lens of a business person. Wayne Johnson, who recently resigned from the U.S. Department of Education has been discussing and presenting an interesting solution. You may read about the specifics here.
The two aspects of this plan which trouble me and potentially you – are both summed up by – Where does the money come from?
Specifically, a write off of up to $50,000 for those who have already paid off their student loans (like the concept but…where does the money come from) and a $50,000 grant to be utilized in the future for education (like the concept…but where does the money come from).
From listening to a few interviews and reading about the plan the funding would largely come from a 1% tax on (loosely defined) corporations.
If we analyze how these loans began and continue to be given one specific group is never mentioned in the – Where does the money come from solution. Anyone care to guess? The missing solution are the colleges and universities. Yes, shocking, and of course, no administrator at a college or university would ever entertain this conversation.
Meanwhile over the previous twenty years the tuition costs have steadily risen across the board. Numerous exclusive schools have growing endowment funds which would make any Wall Street CEO jealous.
Oh maybe not, since they give money to these funds since they graduated from these schools.
In fact even through the years termed the last great recession the colleges and universities tuition costs did not stay even or go down, no, they continued to rise.
During these years of job losses, companies conducting mass layoffs, the tuition costs kept rising!
Enter the U.S. Government Loan system through out the process where anyone interested in attending any college or university may apply for a loan. The schools actually encouraged students and their families to apply for and take out these loans. How are these same schools not participating in the solution of “Where does the money come from?”
Look I do not have the absolute answer. This is a serious issue that must be dealt with. From my perspective it should not be a political football or hot potato if you prefer banning football.
What I ask is for people on all sides of solving this issue to include the colleges and universities as part of the – “Where does the money come from” solution.
This article is part of a recent series based upon personal responsibility. A discussion and a few potential solutions to current issues we are all dealing with one way or another.
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Mitch Tublin is the CEO and Founder of Wenkroy International LLC a boutique consulting company with a main focus on Strategic Business Consulting, Training and Business Coaching. Our passion is to take people to the next level in their life and in their business. Are you interested in having Mitch speak at your company or event – click here.