What will the SCOTUS student loan decision fallout be?

[Diogenes]

I haven't seen a thread recently discussing the SCOTUS decision on Biden's student loan plan. And I'm surprised to see very little on it on the mainstream higher ed platforms (Chronicle, Inside.) Although it's possibly due to so little info out yet on the fallout, but what do you think the outcome will be from this?

My opinion is that the negative impact on the confidence of current and potential students will far outweigh the actual financial impact. Regardless of my opinion on the policy, I think this will hurt already falling enrollments.

I don't think it's fair to blame the schools alone- public funding has been cut dramatically over the years. But I've also always noted over the years how mum institutions of higher ed have been about the increasing student loan debt in this country. Why haven't they been pushing all administrations to drop the interest rates, for example?

[Ruralguy]

Its banks that set the interest rates, if you are speaking of the actual loan payments. I am sure those depend on a variety of economic conditions. I don't think schools can do a thing about rates.

Of course they can lower the price tag, if they care too, but that inevitably means cutting something or other.

[Diogenes]

Its banks that set the interest rates, if you are speaking of the actual loan payments. I am sure those depend on a variety of economic conditions. I don't think schools can do a thing about rates.

Of course they can lower the price tag, if they care too, but that inevitably means cutting something or other.

Subsidized student loan debt (which is the bulk of it) has the interest rate locked in by Congress. It varies, but it's typically 5-7%. You cannot change that without leaving public loan programs and consolidating with a private lender which locks you out of all Dept. of Ed. programs like forgiveness.

Mine for example, are locked at 6.5%. There is nothing I can do about that if I want to eventually get Public Service Loan Forgiveness.

7% was great in the 90's- now it's relatively bad. It would help schools for those rates to be dropped lower by Congress/Ed

[MarathonRunner]

The federal portion of Canada student loans now no longer have interest charged on them. Some provinces (most students get a combination of federal and provincial loans) still charge interest on student loans. Some students get grants, which don't have to be repaid.

Of course, tuition for most Canadian universities is lower than tuition for most U.S. universities. We don't have the huge football/basketball/other sports costs that many U.S. universities do. We still have varsity athletes, and pay coaches a decent salary, but the insane amounts I see spent in the U.S. on sports aren't spent here. For instance, a football coach for an undergrad team that has placed many players in the CFL earns $130,000 Cdn per year, similar to many TT (so untenured) profs' salaries.

[Ruralguy]

Apologies for my error. But the point is more or less the same. Although the rate (for federally backed SL
s) is set by law, its tied to 10 year treasuries. So, I still don't think anyone can really campaign
to change this, unless by fiat the rate would be arbitrarily set to something very low. Maybe that's doable politically,  but I think its hard to justify it financially, other than just the obvious claim that its easier on the client with the loan.