The recent college tuition scandal is a sad example of how rich parents have been paying to get their kids in the college parents think is the most prestigious. There are 51 parents now who have pled guilty to paying huge amounts of money to this Singer character to bribe college officials, coaches, and administrators. This has been going on a long time. Maybe some serious jail time for these rich cheating parents will slow down this corrupt practice, but big money always talks.
There is a much larger scandal, however, that has been going on even longer. The corrupt student loan situation has indebted hundreds of thousands of hard-working students and parents to the tune of almost $1.5 trillion in debt. In 2019, one in five Americans are carrying the burden of this debt, and it will take them 10-20 years to pay it off. You have heard most every democratic presidential candidate support some form of free college tuition or forgiveness of this debt. The trouble with free college is that it only transfers this debt to the taxpayers — many of whom never attended college.
College tuition and room and board now cost about $50,000-70,000 per year. That means parents will pay about $200,000-$300,000 for a 4-year degree. Many wealthy parents are willing to cheat and lie to get their kids into Stanford, Yale, USC and Harvard. Facts show, however, the prestige of a university has little to do with what a student learns, how happy they are in college, or how successful they will be after graduation.
Another strange fact is the 25 colleges receiving the largest endowments also bring in a whopping $6.9 billion in DOE funding — despite having a quarter trillion in assets. The irony is, the more tax-deductible endowments a college has, the higher the tuition. Isn't it suppose to be the opposite of this?
That huge amount of cash could easily be used to subsidize the out-of-pocket costs paid by parents, many who suffer financially trying to put their kids through school. It's time the government steps in and taps into these massive endowments, eliminates the tax status of this money, and forces colleges to sign on to student loans as a co-signer. They should bear some of the risk of this debt because now they just float through with no risk while they get richer and richer.