Just Stay Home

Glenn "Instadouche" Reynolds is back on the warpath again against college loans, arguing in the New York Post that higher education simply isn't worth the debt of student loans anymore.

For students, piece of advice No. 1 is: Don’t go into debt. When I went to law school, back in the ’80s, I turned down free rides at a couple of excellent schools to go to Yale Law School, even though it meant taking on a lot of student-loan debt. I’m not sure I’d advise anyone to do the same thing today, even to go to Yale Law, the undisputed king of the law-school rankings — and I’m positive I wouldn’t make a similar tradeoff for many other places, even Harvard Law.

Debt is what gets people into trouble in bubbles: They borrow heavily because they think the value of what they’re buying, whether it’s a house or a tulip, will go up. When it stops going up, they’re sunk.

Today, the value of an education isn’t going up, but the price is. That’s a bad combination. So don’t borrow heavily.

That’s good advice for schools, too. Those that borrow money based on the expectation that tuition revenue will continue to increase will have problems, and, in fact, some already are. Instead, schools should be looking to cut costs and increase value — the exact opposite of what many have been doing in recent years. 

And why are schools having to borrow money?  Because education budgets, particularly state university systems, are being shredded and conservative knuckleheads like Glenn here are demanding that universities cut costs the same way that public schools do:  fire instructors, drop classes and programs, and shrink admissions.  Not that schools are completely exonerated from being at fault.

But Reynolds wants state universities run like for-profit schools.  The problem is there's plenty of evidence that for-profit schools are more interested in creating profits than providing value or enhancing worth for students.  When students go into debt to pay for a education at a for profit school and don't get a job, Reynolds is saying it's the government's fault for making the student loan available in the first place.

We should be sending more kids to college, not less.  And yes, there's a lot colleges and universities can do in order to cut costs.  But eliminating student loans and grants isn't going to lower university price tags.  If anything it'll just redistribute the costs to taxpayers as there's fewer students.

It's crazy.