Transcript Published April 26, 2017 · 2 minute read
Script and sources behind the "Taxpayers' Blank Check to Higher Ed" video
Tamara Hiler, Michael Itzkowitz, & Lanae Erickson
Taxpayers, I think we have a problem when it comes to making sure our investment in higher ed is being well spent.
Each year, we contribute a huge amount of money to support higher education in this country. I’m talking, close to 150 billion dollars huge.1
This investment comes in the form of grants, loans, and other funds—all so that more students can unlock an important piece of the American dream: a college degree.
But what taxpayers may not realize is that for many students, this dream never pans out. And sometimes, it actually turns into a nightmare.
You see, only a little more than half of students who start college today end up graduating.2
And the rest? Well, many of them end up worse off than when they started since they’ve taken out student loans and have no degree to show for it.3
For example, did you know that there are nearly 140 colleges that get federal funding where less than 10 percent of students graduate? 10 percent.4
That means as taxpayers, we are helping to keep the doors open at colleges where students have a 9 in 10 chance of dropping out.
And without a college degree, it becomes nearly impossible for students to get the jobs they need to actually pay off their student loan debt.5
That’s why students who don’t graduate are three times as likely to default on their student loans.6
Yet last year, taxpayers sent nearly $16 billion alone to schools where three out of four students can’t repay their loans.7
So why are we letting so much money flow to colleges with such terrible track records? Because right now, we have a pretty limited toolbox to make sure our money is being spent wisely.
We need lawmakers to look at how well schools are doing so that taxpayer dollars only go to schools that improve students’ lives.
That means taking graduation rates and repayment rates into account when deciding which colleges get access to federal loans and grants.
We shouldn’t just be sending blank checks without asking for anything in return—especially since everybody benefits when more students attend colleges that help them succeed.
For more details on this effort, go to http://www.thirdway.org/education.
