On 8/28/2019 12:05 PM, Cindy Hamilton wrote:
On Tuesday, August 27, 2019 at 9:35:25 AM UTC-4, Ed Pawlowski wrote:
On 8/27/2019 8:32 AM, Bill wrote:
An idea I had concerning* Student Loans:

Pretty simple really, wonder why I haven't heard of it before...
A lot of big universities have very large financial endowments that they
are pretty proud of.* Why not primarily provide student loans by
requiring students to take out loans mostly sourced by the endowments of
the institutions where they attend.

I'm fairly certain you would see things "tighten up" all over. There
would be a serious concern over student success and "good" choices of
majors. Many majors would probably disappear over night.

What do you think?

Bill

Before you implement that, lets answer another question. Why is the
cost of education so high? The same people that complain about
corporate profits never ask about tuition costs or salaries of staff.

Housing is pretty luxe these days. These are university-owned apartments
for graduate students:

https://housing.umich.edu/residence-hall/munger/

If you live here you'll find:

Bedrooms (one bed, desk, chair, closet, private bath and climate control)
Two Microwaves
Two Refrigerators
Two Ovens
Dishwasher
Washer and Dryer
Flat Panel HDTV
Ethernet Port
Two Couches
Chairs
Coffee Table
Lamps
Fire Suppression System
Overhead Lighting

Cindy Hamilton

The problem with using endowment income to source student loans is that
many donors explicitly specify how their contribution to the endowment
fund is to be used. The schools are legally obligated to follow the
terms of the donation. If the school has a substantial percentage of
their endowment as a consequence of donations unencumbered by specific
restrictions, and those funds have not already been budgeted to pay
existing future obligations, such as endowment growth reinvestment
programs, mortgage payments or staff/faculty retirement plans, those
funds would be available to source student loans. However, the total of
discretionary endowment fund income is usually only a small fraction of
the endowment's total annual investment yield.