Federal Student Loans Should Not Fund Low-Earning College Degrees
Source: https://www.facebook.com/americanspectator/. "The Spectacle Ep. 474: Should the Federal Government Pay for College Degrees That Don’t Pay Enough? | The American Spectator | USA News and Politics." October 2, 2026. spectator.org
The Gist
The hosts argue that the government shouldn't give out student loans for college degrees that don't lead to good-paying jobs, pointing to fields like cosmetology as examples where expensive degrees aren't necessary. They suggest cheaper alternatives like job-specific training programs and taxing rich university endowments instead.
Conclusion
The federal government should restrict or eliminate student loan funding for college degrees that do not lead to sufficient post-graduation earnings, and this policy should be expanded further than current rules allow.
Premises
- Many college degrees do not provide graduates with enough earning power to justify the debt incurred to obtain them.
- Some occupations (e.g., cosmetology, personal care services) do not require expensive, multi-year degree programs and could be trained for through cheaper alternatives.
- Industry-linked training programs could more efficiently connect education to employable skills than traditional degree programs.
- Taxing large university endowments could help offset costs or redirect resources toward more effective educational models.
- A new Department of Education rule already restricts federal loans for degrees with projected low earnings, indicating institutional recognition that this is a problem worth addressing.
Assumptions
- The primary purpose of federal student loans is to produce economically self-sufficient, gainfully employed graduates rather than to fund education for its own sake (e.g., intellectual, civic, or personal development value).
- Earning potential immediately or shortly after graduation is a valid and sufficient proxy for the value or worth of a degree.
- Government intervention in loan eligibility is an appropriate and effective mechanism for correcting perceived inefficiencies in higher education markets.
- Alternative training models (industry-linked programs) would be comparably or more effective at preparing workers than traditional degrees for the fields discussed.
- Taxing university endowments would meaningfully improve educational outcomes or affordability rather than simply reducing university resources.