Student Debt Cancellation: It’s Actually Good

Luke Herrine-

Whenever talk of student debt cancellation, or even of a “student debt crisis,” gets too loud, there is a bevy of pundits ready to tut-tut. Don’t you so-called progressives know that most student debt is held by young professionals? That the young professionals with the biggest debt loads are unlikely to default on their debt because they have leveraged their education into high-paying jobs (or at least have well-off family who can pitch in)? And so don’t you see that cancelling student debt would mostly just be a subsidy to already comfortable people? And you call yourself progressive? Shame! Go think about what you’ve done. Let the professionals take care of the policymaking.

Now that the Levy Institute has published a report on the likely macroeconomic effects of student debt cancellation and some left politicians have taken up the idea, David Leonhardt at the New York Times saw fit to rehearse the arguments he and others have made multiple times before (apparently not having read the arguments against his position in that selfsame report). Here’s why he’s wrong again.

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Neoliberalism and Higher Education Finance: Breaking out of the Ideology

Luke Herrine —

My earlier post on for-profit colleges discussed a special instance the limits that a neoliberal lens places on a progressive vision for higher education. In this post I discuss the more general phenomenon and an alternative approach to thinking about higher education. In doing so, I draw from a nascent project that Frank Pasquale and I have been working on.

In DC policy circles one rarely hears the value of higher education discussed in any terms aside from preparing students for future employment. Whether college is “worth it” is understood as an investment proposition, and colleges are understood as offering an investment good packaged with short-term consumption benefits (parties and the like).

This is the influence of a neoliberal frame. As several of the authors of this blog have explained, neoliberalism refers to an overlapping set of techniques for justifying social ordering via markets. Common among many of these techniques is the assumption that all social ordering is actually market ordering. Once one understands the underlying market dynamics, one understands that the proper approach is to work with them rather than against them.

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Neoliberalism and Higher Education Finance: The For-Profit Case Study

Luke Herrine —

Betsy Devos’s Department of Education spent the summer finalizing its plans to defang Obama-era regulations strengthening consumer protection regulations of for-profit colleges. Undoing these regulations will keep federal funds flowing to companies that line investors’ pockets by imposing a lifetime of indebtedness onto working-class individuals under false pretenses. The ongoing challenges to their delay and repeal (one of which just won in district court!) are thus crucial.Image result for college

But that does not mean that we should celebrate the regulations themselves as victories for progressivism. They are a prime example of the limits that neoliberalism has imposed upon the progressive imagination. From a law and political economy perspective, it is clear that for-profit colleges have become a wealth extraction strategy in which financiers create a revenue stream by using the societal promise of class mobility as a lure to lead structurally disadvantaged individuals into unpayable debt. Shifting from a neoliberal to an LPE lens makes it clear that eliminating for-profit colleges is the first step to a truly progressive vision for the role of higher education in society.

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