Senator Reid Makes a Sound Proposal

Senate Democrats launch new push on student loan debt, college accountability | Inside Higher Ed: The idea is that colleges will be charged a penalty in proportion to the default rate of students who attend their college. It would give colleges an incentive to discourage students from taking out loans that they can't pay back, or as Reid says, give them "skin in the game." It is a good idea and I am surprised that Reid supports it given that the higher education is a major Democratic constituency. I suspect that the larger and more prestigious institutions see it as a way of putting greater burdens on their competitors, particularly for profit institutions.