Today’s Wall Street Journal has a good editorial on the Obama administration’s “Pay As You Earn” program, which is designed to help college students (and also those seeking higher degrees, such as JDs) by allowing many of them to off-load some of their debts. This will probably buy some votes and undoubtedly help to keep the higher ed bubble inflated for a while longer. Especially disturbing is the way the program lures students into “public service” work so they can escape more of their debt. The editorial correctly notes, “impressionable youngsters, who likely have little or no wealth, are being given an enormous financial incentive to pursue careers in government or low-paying nonprofits.”
This is yet another good reason why we should never have gotten into federal student aid in the first place.