Seize the Endowments

Crouse College, Syracuse University (Photo by Dianny)

I follow attorney Will Chamberlain on Twitter.  And while sometimes I disagree with him, I have found that he often makes me think of things in a way I hadn’t before.

When Liz Warren announced her “make everybody else foot the bill for student loan debt” proposal, Will had a pretty unique take on it.

In short, he thinks the solution to crippling student loan debt is to seize the endowments of universities to pay off the debt.

When it comes to endowments, universities are swimming in cash.  We’re talking billions with a B — as Inez Stepman pointed out last month:

And despite these incredibly lucrative endowments, universities continue to charge insane tuition rates that no normal human being can afford on his own.

Why?  Because student loans are guaranteed by the Federal Government (AKA taxpayers). There’s no downside to charging outrageous tuitions because at the end of the day, whether the student can’t pay back the loan or not, universities will get that money.

It’s a huge fraud being perpetrated on American students.

And Liz Warren’s “debt forgiveness” doesn’t address that problem at all.  Universities will continue to defraud students.  And they’ll continue to be bailed out by taxpayers.  Because, as I said earlier, universities see us as the Ever-Lasting Gobstopper of funding.

There is no accountability in our current education system. Universities don’t need to produce results. Why should they? They have absolutely nothing to loose and everything to gain.

And meanwhile they’re sitting pretty on billions in endowments.

If universities aren’t churning out a product that enables students to achieve successful careers, why are we rewarding them by keeping the money-train chugging along?

The way Will sees it, blaming the students for getting defrauded is a politically useless approach.

Whereas targeting the universities who are committing the fraud is a far better long-term strategy — and one that will actually be a viable solution.

Watch his Periscope explaining all this.

I have to admit, it’s brazen. But it also would solve the problem of student loan debt without costing taxpayers a penny.

Watch it here.

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8 thoughts on “Seize the Endowments

  • April 23, 2019 at 2:36 pm
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    In Vermont BOTH private and public liberal arts colleges are dropping like flys.
    Just ask Jane Sanders …. and daughter

  • April 23, 2019 at 8:31 pm
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    It seems like any other business that overcharges for a defective product would be issuing refunds to go out of business.

  • April 23, 2019 at 11:46 pm
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    In addition to charging absurd fees for tuition, many Universities are also building elaborate student unions and dormitory complexes. These buildings don’t come cheap and the students are paying for it too.
    Maybe some college administrator can tell us why a student unions needs a latte café that charges Starbucks type prices or dormitory rooms now get luxury type bedding.

  • April 24, 2019 at 3:58 am
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    Criminals should be forced to pay their victims restitution.

  • April 24, 2019 at 5:28 am
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    The main function of colleges is to indoctrinate young minds,unencumbered by reality in the glories of socialism,blame shifting and excuse making.

  • April 24, 2019 at 8:27 am
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    Dianny, I don’t like the solution of seizing the endowments. Those funds were donated by alumni and seizing the funds is as much a violation of the alumnae’s rights as seizing funds donated to rebuilding Notre Dame and giving them to the poor would be.

    Instead, get the federal government out of the student loan business. If every student had to go to a private bank and ask for a loan to go to college, the banks would want to know how they would be paid back. Immediately, “studies” majors–African Studies, Feminist Studies, Gender Studies–would disappear. Next, colleges would have to curtail their costs because banks would refuse to put up the outrageous sums currently being charged. Want to teach as a career? Okay, but find a school that charges $10K a year, not $70K.

  • April 24, 2019 at 9:35 am
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    I want college tuition reparations. I paid for my own kids college educations in cash from my savings. This is blatantly unfair. People need to be responsible for their own decisions, good or bad. And need to be aware of the costs of their college degree and stop majoring in areas that quality them to be a barista at Starbucks when they graduate.

  • April 24, 2019 at 1:56 pm
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    I worked in the highly regulated insurance industry in NJ. Our company could have been fined $10,000 (back in the 1990’s) and risked losing our insurance license if we sold an insurance policy to an adult that they couldn’t afford or that was in excess of what they needed. That would have been considered fraud. You and Will Chamberlain are completely correct that selling an overpriced college degree full of false promises to minors who have no collateral is a vicious, loansharking kind of fraud. The colleges are a cartel colluding to rip off young people. They and their donors are guilty as sin and should pay the price.

Comments are closed.