even expert financial aid analysts can be financially innumerate at times
Leading education site Higher Ed Watch (under the umbrella of the New America Foundation) thinks Georgetown Law’s Loan Repayment Assistance Program (LRAP) is a pyramid scheme.
On the surface, it seems like Georgetown Law is taking a loss on students who go into public service. But the truth is far more sinister. Georgetown loses little if any money from this scheme because the school simply includes the cost of the loan repayment program in its tuition. And since the federal government issues loans for whatever amount Georgetown charges, students just take out more loans to cover that cost.
See the problem? Neither Georgetown nor its students are financing the program. You are, as a taxpayer by providing them with access to unlimited loans and unlimited loan forgiveness.
Simply put, this is incorrect. Which is too bad, because I’m a big fan of both Higher Ed Watch and the New America Foundation. But they missed a key step, as I pointed out in the comments. (Though for some reason my comment is now ”awaiting moderation,” even though it was up earlier). In any event, here’s what I wrote: