In 2009, taxpayers in the United States dished out almost $110 billion dollars in student loans. Even with this enormous expenditure, only half of incoming freshmen will finish their senior year and be awarded with Bachelor degrees. How can taxpayers continue to fund this embarrassing dropout rate without demanding reform and accountability? Fortunately, there are ways to address this needless waste. The answer is simple, responsibility. Student responsibility may not be the answer to everything but is it the best place to start. The United States must require more accountability from future generations to insure higher education levels and more conscientious citizens.
First, the financial aid program should act as a deterrent to bad behavior by requiring a 3.0 grade point average (GPA). Each student would be allowed one term as a grace period if their GPA falls below 3.0 for reasons such as family and financial emergency. If the student falls below the grade point average requirement again, they are no longer eligible work student loans. Currently, students can abuse the financial aid system by falling into and off of probation on a term by term basis. When they are on probation, they hit the GPA target for the next term and are removed from probation list. The next term, they party hard since they are off probation and spend taxpayer money on wild spring break parties. A GPA of 3.0 is not difficult to obtain but will require considerably more work than a 2.0 GPA. Also, it will prevent students from wasting taxpayer money with several probationary periods by either focusing them on their studies or weeding bad students out of the system earlier.
Second, the United States should increase the interest rate on loans to individuals who drop out. People should not be rewarded for failure. Taxpayers have the right to demand people graduate if they are going to school on the public dime.
Third, we need to provide incentives for students to stay in school. If their GPA is high, the interest rate for the loan could be adjusted downward. Also, for dropouts who wish to return to school, their college loans rates will fall and any penalties waved if they return and complete their education.
By raising the GPA requirements and penalizing drop outs with a higher rate of return, you would give students a moment to reconsider any thoughts about dropping out. An increase in graduate rates will only help strengthen the marketplace and increase the maturity of the United States citizens.