The Department of Education released information on May 21 about how much debt students are taking on to earn degrees from various academic programs at American colleges and universities. The data shows one sector in particular with outsize debt: graduate school, according to a New York Times commentary. In releasing the college loan data, Education Secretary Betsy DeVos described it as part of President Trump’s executive order to address the student debt crisis. Access to the loan amounts, she said, will allow students to make informed decisions about choosing colleges. At the same time, the department is preparing to uproot the Obama administration’s approach to the debt crisis, by repealing regulations that cut college programs out of the federal financial aid system if students don’t earn enough money to pay their loans back. Within the graduate school sector, the fast-growing master’s degree market is replete with debt levels that make little sense. An accredited university can essentially create a master’s degree in anything, set whatever price it likes, start signing up students for federal loans, and market the program as “accredited.” Read more.
The issue of student loan debt and bankruptcy is the first problem addressed in the Final Report of the ABI Commission on Consumer Bankruptcy. Click here to download your copy.
