Colleges financed by loans should take a hit when students default: op-ed

Higher education institutions that invite students to borrow large sums from the government should share in the losses when those students fail to pay.

Following Biden’s latest debt relief handout of $5 million on Dec. 6, taxpayers will shoulder the burden of up to $132 billion in “canceled” student loans, Hudson Institute Senior Fellow Arthur Herman wrote with Mises Institute Senior Fellow Alex Pollock in The Hill.

However, “now it’s time that the cost of nonpayment of student loans be shared by those who have benefitted the most directly from federal student loans: namely, the colleges and universities themselves,” they wrote.