[sota4077]

I have read this article twice now and I am failing to understand what they are trying to solve with this. They want to essentially punish students who that opt to attend a wealthy university? So they are expanding pell-grants and banning students from getting federal financial aid? What is the overall purpose or problem they are trying to solve?

[kasey_junk]

They are required to pay for the Pell grants somehow without new revenue. It’s a house rule.

So they are taking the money from the student loan program. It’s not really going to pay for the grants because that loan money is still available just at different institutions. It’s an accounting trick.

But those institutions are an easy target. The right views them as spreading leftist ideals and the left views them as bastions of privilege.

Of course if this passes it will be middle class kids that get hurt the worst.

[zaroth]

The problem is a massive taxpayer subsidy for wealthy institutions that don’t need it.

The important point is who is benefiting from the subsidy? Just like the Federal tax credit for EVs benefit Tesla not the consumer, so too do student load subsidies benefit the universities, not the student.

When the Fed steps in to pay a portion of a consumer’s bill, if the supplier isn’t regulated, the supplier simply increases their prices exactly in line with the subsidy.

Consumers have a price they will bear, and that price is NET of any subsidies. It doesn’t really matter who technically “receives” the subsidy, directly to the supplier or to the consumer after the fact, because the purchasing decision works out the same either way if the supplier is free to increase prices.

[hasty_pudding]

I guess its as simple as: if the university already has massive amounts of money, why give them more when schools who dont have that money need it?

[mixdup]

When of course while yes the schools ultimately get the money, it's not a direct handout/appropriation to the school it's a vessel to get the student an education

Since the schools have high demand there is another student that will replace the loan recipient so the private school will not suffer one iota.

However the poor or middle class student just had their bootstraps cut off, the same ones that they'll be told they should've pulled themselves up by in 10-20 years when it's explained to them why they are not to have help with healthcare when they get cancer and have to stop working or why the banks are getting bailed out directly but their mortgage is definitely going to be foreclosed in the next housing crisis