Last night I had the chance to drive back home for the Princess's softball game. I was listening to a little NPR on the way, and caught a commentary on student loans (a subject very near and dear to my heart, errr, wallet) by Robert B. Reich, a professor at Cal-Berkeley and former secretary of labor under Bill Clinton. (Links: read transcript, listen to commentary) Reich lamented the fact that some of his students are able to take high-paying jobs that will allow them to pay off their students loans quickly, while students who want to work in lower-paying public-interest type jobs need longer to pay off their loans. His suggestion: a subsidy system in which each college graduate would pay 10 percent of his income for 10 years, at which point his debt would be considered paid off.
In other words, a grad making $250,000 a year working for a major corporation or firm would pay $25,000 a year for 10 years, and a grad making $30,000 a year at a health clinic in a poor neighborhood would pay $3,000 a year for 10 years. In the end, both would be debt free.
Sounds fair, huh? Well, in a collectivist kind of way (if you’re into socialism).
What Reich fails to address, amongst other issues, is the problem of students who fail to put forth any effort in school suddenly meriting from the hard work of others.
Say "Joe" works his tail off. He skips parties to study, makes Dean's List every semester, and graduates at the top of his class with a 4.0 – one year early. Upon graduation he lands his dream job, making six figures.
Enter "Don." Don lives it up in college. He drinks constantly, routinely cuts classes to watch Beavis and Butthead reruns, ands manages to graduate by the skin of his teeth, taking five years to do so. Upon graduation, the only job he can find is waiting tables at his dad’s restaurant.
Joe, through his efforts, has amassed three years worth of debt and landed the job he wanted. Don has five years worth of debt and landed the only job he could find.
And now Reich wants Joe to pay for Don’s "education?" Pfft. I'd tell him he can pry 10 percent of my income out of my cold dead hands.
11 comments:
How does working as a waitress at a family restaurant qualify as a public interest job?
That is where your little narrative fiction falls apart.
It's not a good or credible example of such a program's possible shortcomings and really sloppy analysis John.
Try again and this time think a little more deeply...
Sigh, kids these days! (What can you do?)
I think that was kinda the point...
I only have a moment, so I'll have to address your criticism briefly...
Reich's proposal didn't specify that the program would only be for those in public interest jobs. It was for people in ALL jobs, in which case my scenario could indeed play out.
That said, there is no need for his plan, even if it was limited to grads with public interest jobs. There are already programs in place that allow grads working in P.I. to either defer paying on their loans or pay a reduced payment. There is absolutely no need for a collectivist subsidy program.
If money is what you're worried about get a degree that will get you a high salary. If that's the kind of job you're looking for then for marketability's sake it's a good investment to shell out $$$ to a great school.
However if you're not completely motivated by money and your goal is a public interest job, you probably don't need to go to an top school. Besides if someone makes less than a certain amount per year in some jobs they can already receive student loan forgiveness.
You said "public interest" RIGHT HERE!
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"Reich lamented the fact that some of his students are able to take high-paying jobs that will allow them to pay off their students loans quickly, while students who want to work in lower-paying public-interest type jobs need longer to pay off their loans."
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And Jeshanah your post indicates you're not following (maybe John can connect the dots for you.)
Basically, John says "Public Interest Type Job" in his post and then goes out to lay out a scenario in which his fictional character gets a job that is anything but "public interest."
Dat dere is where his criticism stops making sense...
Capishe?
The Razor said
"However if you're not completely motivated by money and your goal is a public interest job, you probably don't need to go to an top school."
That just shows how important the public interest is to Republicans. It isn't important at all -- all that matters are the very private interest of their campaign contributors.
My wife graduated from the John F. Kennedy Public Policy school at Harvard, which is a top school that is supposed to prepare you for those unimportant public interest type jobs.
You know the kinds of jobs that involve deciding how best to spend billions in taxpayer money. (Those kinds of jobs.) Believe me, you want the top students from the best schools (Usually non-Republicans) making those decisions if at all possible, instead of the kind of community college slackers Razor seems to be advocating for.
I just read the transcripts and Reich's idea sounds pretty dumb to me - (unless, you make sure they really do take a public interest job.)
Did you know that in Mexico if you are academically qualified you get to go to the university for free?
Imagine that, a free college education to everyone that deserves one.
Freaking commies!!
Only people whose parents can afford to send them should be able to go to college no matter how dumb they are (ie George W. Bush.)
Oh yeah, and only people who can afford medical care should get it. Poor people should just go find a soft place to lay down and die, while drug and hospital companies make money hand over fist!!
That's how we do it in the good ol' USA.
I just read the transcripts and Reich's idea sounds pretty dumb to me - (unless, you make sure they really do take a public interest job.)
Which pretty much sums up the point I was trying to make. However, even if it is someone going into public interest, I don't think it's good policy to force someone else to subsidize their career choice. There are already numerous repayment options in place for those who choose to go that direction.
Isn't anybody going to comment on my picture of Reich? I thought it was hysterical.
(He's really really short, for those of you who don't know.)
I like his picture! It looks like maybe I took it! If you were there beside him, I would have gotten your chin in there too! :)
You should photoshop your disgruntled face into the top right corner, that would be deliciously eeevil.
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