State-funded student loans wouldnt work
After President Barack Obama presented his plan to step up federal student loan reform last week, Republican presidential candidate and businessman Herman Cain suggested a plan of his own: shifting the burden of student lending from the federal level to the states.
"I believe that if a state wants to help with college education, that they should do that," Cain said during a satellite speech to a forum sponsored by The College Board. "Secondly, you have people living within communities within states that are willing to help fund those kinds of programs. So I do not believe that it is the responsibility of the federal government to help fund a college education because, herein, our resources are limited and I believe that the best solution is the one closest to the problem. The people within the state, the people within the communities, ultimately, I believe, are the ones who have that responsibility."
Rather than allow for healthy reform, Cain's plan would likely spell the end of student lending altogether. While federal resources are limited, states are no better off. With state budgets constantly shrinking, many could not afford to start issuing student loans even if they wanted to or were forced to by federal mandate.
According to the State Higher Education Executive Officer's report on funding to higher education, state and local support to universities fell $5.2 billion, from $88.9 billion to $83.7 billion, from 2008 to 2010. This decrease was offset only by $4.8 billion in added federal funding.
Many states simply don't have the money, and increased education spending seems unlikely in this economy. It is also unclear whom Cain had in mind when he referred to local community members who would like to support student aid.
Florida's state funding is especially poor. Even after tuition hikes, the USF System lost $25.3 million in its budget for this academic year.
"What we're seeing is that, over time, we have seen state appropriations diminishing or eroding," USF Provost Ralph Wilcox said in a May interview with The Oracle. "The Legislature and the taxpayer has reduced its investment in USF and all public universities in the state of Florida."
Cain's plan, in effect, would not be too far off from Republican candidate and U.S. Rep. Ron Paul's plan to eliminate the federal student-loan program altogether.
If students no longer had the option of taking out federal student loans, more would turn to private lenders, which charge higher interest rates and offer no debt forgiveness. And student loan debt, which is nearly $1 trillion nationwide, would only get higher.
Get Top Stories Delivered Weekly
More usforacle News Articles
Recent usforacle News Articles
Discuss This Article
MOST POPULAR USFORACLE
GET TOP STORIES DELIVERED WEEKLY
FOLLOW OUR NEWSPAPER
LATEST USFORACLE NEWS
- USF assistant coach resigns amid NCAA investigation
- UP arrests Clearwater man for sexual battery
- A student-driven upgrade: USF Health expands to better serve its students
- USF student interns in Florida Everglades
- Pokemon conquer campus: The new app “Pokemon Go” allows students to get act...
- We’ll always have Tampa: Tampa Theatre hosts Summer Classics Series
- O’Neal’s Olympic bid falls short
FROM AROUND THE WEB
- Driver Safety: New Tips for Road Trips
- What to Ask About the Medicines You Take
- Summer Is the Perfect Time to Catch Up on Some Reading
- There's At Least One Thing Americans Are Satisfied With
- What to Look for in a New House This Home Buying Season
- Is Your Eye Makeup Making You Sick? What You Need to Know
- Biotech Companies Are Still the "It" Stock to Have in...
- Give Seniors a Lift With Household Chores
- On the Brink: Africa Viewed As Growth Target for Telecom
- Protect Your Family With Encryption
COLLEGE PRESS RELEASES
- Higher Education Goes Solar to Charge Mobile Devices
- Course Hero Beats Donation Goal for Books for Africa
- Course Hero Receives 2016 Top Workplace Award from Bay Area News Group
- Citavi Offers Summer Thesis-Writing Toolkit for Graduate Students
- Course Hero Welcomes Dr. Arthur Levine to their Advisory Board