Friday Fragments
I was intrigued to see Wayne State University’s announcement about forgiving outstanding debts of former students to get them to return. The program will cover up to $1,500 per student. Off the top of my head, it sounds like a potentially great idea. When we look at the records of students who were previously enrolled and didn’t return or graduate, a shocking number of them have financial “holds” on their accounts. Sometimes the holds are for significant amounts, but sometimes they’re relatively small. “Relatively” is the key word there. If you’re really broke, even a “small” amount of money can be prohibitive. For a student who’s already skipping meals to make ends meet, a fifty dollar debt may as well be fifty thousand. For-profit colleges knew that, which is why they didn’t charge application fees. Yes, there’s an obvious “moral hazard” problem with debt forgiveness. A student who sacrificed to pay her debts may be annoyed to discover that ...