Fox News has recently reported that the U.S. Supreme Court has invalidated the Biden administration’s $400 billion student loan bailout after a legal challenge by the Job Creators Network Foundation. This landmark ruling now opens the door for much-needed bipartisan action to address the root cause of the student debt crisis: unregulated colleges that have consistently increased tuition at a rate double that of inflation over the past few decades.
The court’s decision stems from the view that the loan forgiveness program was an instance of executive overreach, a sentiment previously expressed by both President Biden and Nancy Pelosi. Congress had not authorized a widespread student loan forgiveness, nor had it shown any indication of doing so. In reality, Congress has consistently rejected bills proposing student loan cancellations in recent years. It’s clear that the president cannot assume the authority of legislators.
With this ruling, the Supreme Court has protected hardworking Americans who have responsibly repaid their student loans or never pursued higher education from being unfairly burdened with the college debt of others.
A student debt jubilee would have let colleges off the hook for their responsibility in this crisis and allowed them to raise costs without consequence, knowing that the federal government would intervene when debts spiraled out of control. Now, lawmakers can focus on tackling the core issue.
The average annual tuition at private, nonprofit universities has skyrocketed to $50,000. Consequently, American colleges hold an astounding $700 billion in endowments. By taking advantage of their nonprofit status and favorable treatment from Democrats and the media, these institutions have been able to exploit ordinary Americans. It’s time to eliminate the unnecessary excess and lower tuition fees for students. For example, colleges have employed a vast number of highly paid administrators who add little educational value. Some colleges have more administrators than faculty members. College sports coaches earn over $10 million per year, and college presidents make over $1 million. Are colleges primarily employment agencies funded by students and taxpayers?
Additionally, colleges have introduced numerous costly humanities degree programs that fail to equip students with marketable skills. These majors often revolve around postmodernism, identity politics, and a victim mentality, leaving students ill-prepared to succeed in today’s competitive job market. British Prime Minister Rishi Sunak has vowed to eliminate these low-value degrees in the United Kingdom.
Moreover, colleges have indulged in extravagant building projects, constructing resort-style amenities on campuses. While these features may not enhance the learning experience, they come at a significant cost to students and taxpayers. The modern college campus is a far cry from what we remember.
Under the current system, where the federal government guarantees all student loans, there is limited oversight over college spending. However, intelligent reforms can reverse the trend of skyrocketing tuition and extravagant expenditures. Recent legislation proposed by Senate Republicans aims to address the root cause by promoting student loan transparency and eliminating inflationary Graduate PLUS loans. However, more comprehensive reforms, such as requiring colleges to assume some responsibility for student loans, can incentivize them to ensure that students do not accumulate excessive debt and graduate with the skills they need to succeed—a win-win situation.
Democrats have consistently opposed price gouging, corporate greed, and the exploitation of vulnerable individuals. They can uphold these principles by joining forces with Republicans to confront the higher education cartel. Prominent Democrats like Sen. Elizabeth Warren have fought against corporate excess, and they should remain consistent and hold colleges accountable.
Thanks to the Supreme Court’s decision, lawmakers can now unite to alleviate the burden of escalating college costs. It is universally acknowledged that student loans are a crisis, and it is time to recognize colleges as the true culprits and pursue bipartisan reforms to hold them accountable.
Elaine Parker is the President of the Job Creators Network Foundation.
Alfredo Ortiz is the President and CEO of the Job Creators Network, a non-partisan organization founded by entrepreneurs.
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