Biden's Making the Right Moves in Higher Ed
and alienating some liberal democrats in the process.
March 4, 2021
Hello friends,
It’s been a busy two weeks in the realm of higher education. It seems like the start of a new administration has ushered in more serious talks about higher education reform than we’ve seen in the last four years combined. It’s been fun to be a part of what is now a passionate national discussion with the possibility of real change on the horizon (for better or for worse.)
Here’s what I’ve had to say lately:
Massive student loan cancellation still doesn’t make sense. I said as much and offered an alternative in a new piece for National Review. The best solution for unaffordable student debt is to make our existing safety net (income-driven repayment) work better for borrowers. If my Twitter mentions are any indication, this is an idea that’s incredibly offensive to the sensibilities of the left. It isn’t a sexy idea, but sound policy rarely is.
Seeing Biden’s picks for the higher education posts at the Department of Education has me sleeping easier at night. In choosing James Kvaal (my response to his nomination here) along with Jordan Matsudaira to head up higher education policy, Biden is doubling down on what his campaign implied: that he’ll pursue a reasonable and moderate path forward. I don’t always agree with Kvaal and Matsudaira, but I do respect their expertise and am very relieved to see them named for these important posts.
What I’ve been thinking about:
Biden’s crusade against the most generous student loan cancellation plans has continued. At another town hall, Biden is quoted as saying “the idea that … I’m going to forgive the debt, the billions of dollars in debt, for people who have gone to Harvard and Yale and Penn …” but failed to complete his thought. He went on to say, “[I]s that going to be forgiven, rather than use that money to provide for early education for young children who come from disadvantaged circumstances?” While these gruff remarks on student debt might be seen as gaffes among the more politically inclined, I find the honesty refreshing.
Trustees at the University of Wyoming in Laramie voted to eliminate 11 programs in an effort to reduce spending. It seems I’m the only one applauding this effort to cope with COVID-19 induced budget shortfalls rather than mourning the outcome. Colleges’ insistence on hosting comprehensive academic programing costs students and taxpayers dearly and is wholly unnecessary in our new virtual world. Efficiency is not a bad word. In fact, higher education’s survival into the next century might just require it. Bravo to those in Wyoming for making a hard call. I’ll bet that others will follow.
This week I recorded the first episode of my new podcast, An Economist Goes to College (coming next month). My guest was Ron Lieber, personal finance columnist for the NYT, and we spoke about his new book, The Price You Pay for College. My number one pet peeve about the public discourse on college is that it’s so darn romantic. Lieber’s book cuts through that romanticism and uncovers how college pricing works behind the scenes. Subscribers to this newsletter probably already know most of the dirty secrets he reveals, but you might consider recommending it to someone you know who is shopping for college, especially if you wish to avoid those sometimes-awkward conversations yourself.
That's all I’ve got for you today. Thanks for reading and please do let me know if you have comments or suggestions.
Take care and be nice to each other!
Beth
Author of Making College Pay (May 2021)