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Bigger Loans for STEM Students – WSJ
Any US resident who pursues a STEM career or related STEAM, Math, Science teacher, doctor after 10 years should have their loans forgiven 3 years if they create a business that employs vets and urban youth. Crucial to get business to invest in local accountable charter or public schools that can identify talented STEM students.
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The price of tuition has risen an average 3.4% each year for a decade, markedly outpacing inflation.
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, the U.S. faces a daunting skills gap in science, technology, engineering and math. Each year there are 1.3 million new openings in STEM fields but fewer than 600,000 new graduates.
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Restructure the Federal Direct Loan Program to target loans based on field of study. Students’ interests would be better served and taxpayers’ dollars would be more productively invested if the Education Department were to extend loans depending on the employability and long-term economic productivity of different fields of study.
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In 2015 the default rate on direct loans was on average 2.1% per quarter or 8.4% for the entire year.
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One of the chief lessons of the 2008 financial crisis was that mispricing credit risk can have catastrophic consequences.
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federal lenders should tailor the loan amount based on the long-term economic opportunities of the borrower.
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Our proposal is to target the loan amount for each student based on field of study.
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alone but can rely on market data
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Relying on such an index would allow government officials to peg the loan size to market data rather than by government fiat alone.
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But treating these majors as financially equivalent imposes undue risk on the ultimate creditors behind student loans: taxpayers.
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If the nation is serious about staying competitive in the global race for STEM talent, then targeting student loans is one solution that can and should earn bipartisan support.
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It crazy how the price of tuition has risen an average 3.4% each year for a decade, markedly outpacing inflation, the U.S. faces a daunting skills gap in science, technology, engineering and math. And each year there are 1.3 million new openings in STEM fields but fewer than 600,000 new graduates.