With the rise of student debt doubling the government is starting to notice that the cost of school is costing student more than what their future salary will provide them. Since there is no cap on how much/many loans a student can get, the cost of tuition is exponentially higher than what there degree is even worth. Democrats are opposed of this bill stating that this will hurt those who can not grab private loans. However, this bill's aim is to help curve the cost of the tuition that colleges are charging their students. Since their is no cap on how many loans a Graduate student can take and parents of undergrad students, colleges are starting to charge higher for their tuition costs.
Graduate student are the ones being the most effected by these high tuition costs, stating that their tuition is twice the amount of undergraduate. This cap on loans will effect the marketing techniques college's have. Colleges/Universities will have to honor the cap that the government will make on loans. This cap will effect the brand that Universities/colleges have, this can be either positive or negative. But the schools can take this as an advantage to lower their tuition to attract more students or leave their tuition the same and most likely have student leave and leaving their school's name bad.
https://www.wsj.com/articles/trump-administration-proposes-borrowing-limits-for-some-student-loans-11552942437?mod=searchresults&page=1&pos=1
I agree that some schools can see this as an advantage and can lower their tuition in order to attract more students as well as keep their students from dropping out or transferring. UST tuition is pretty high, and throughout the years I have been here (I am now a senior), I have seen many people leave because tuition was too expensive and other schools were more affordable for them. However, lowering tuition can also be a disadvantage for the school.
ReplyDelete