The ‘Big, Beautiful Bill’ Would Penalize Private Universities For No Good Reason - Opinion Piece

Robert K. Vischer writes: If this proposal really aimed to make universities share risk — in other words, to require them to bear a portion of the cost when graduates default on federal loans — that would be rational. But that’s not what the formula is based on, as private institutions have long had the lowest default rates. Instead, the formula is based primarily on degree programs’ total cost versus a single year of graduates’ earnings shortly after graduation. Given massive government subsidies received by public universities, the penalties are skewed heavily against private universities.