As the school year lurks around the corner, education costs are shaping up to be a hot-button issue in the upcoming presidential election. Enter Rep. David Joyce, R-Ohio, with his unique plan to lighten the load on students’ wallets—by poking some fun at those huge university endowments, of course.
Joyce, paired with Rep. Nicole Malliotakis, R-N.Y., is stirring the pot with a bill simmering in Congress this week. Their proposal? Hike the tax on private universities’ endowment profits from a paltry 1.4% to a hefty 10%. And here’s the kicker: It drops the bar for those big endowments to get taxed from $500,000 per student to $250,000 per student. Joyce’s stance? It’s high time these universities put more skin in the game.
Joyce’s Take on University Endowments
“These universities have been basking in the sun, reaping the benefits of our student loan program while tuition fees skyrocket beyond inflation. It’s time they pitch in!” Joyce told Fox News with a grin.
And get this – if a school decides to raise tuition faster than a cheetah chasing its prey, they’ll face even stiffer penalties. Any private university boosting net tuition quicker than inflation over three years will get slapped with a 20% tax on its endowment profits in the fourth year. Talk about putting the brakes on the money train!
“Our legislation aims to hold universities accountable and urge them to curb excessive tuition hikes,” Malliotakis stated, echoing the feelings of cash-strapped students across the country.
The Skyrocketing Cost of Higher Education
Brace yourself for this eye-opener – the Department of Education reports the average annual cost of tuition, fees, room, and board in 2022-23 was a whopping $30,884. Now, let’s hop in our time machine back to the 2000-01 school year, when it was a mere $12,992. That’s more inflation than you’d find at a hot air balloon convention!
| School Year | Average Annual Cost |
|---|---|
| 2000-01 | $12,992 |
| 2022-23 | $30,884 |
Biden Administration’s Approach
Meanwhile, in the realm of grand promises and ballooning federal budgets, the Biden administration and Vice President Harris are making pledges their policies might struggle to fulfill. They’re leading a charge for student loan forgiveness, with Harris envisioning a “future where no teacher has to shoulder the burden of student loan debt.”
Randi Weingarten, the big cheese at the American Federation of Teachers, chimed in, painting a rosy picture of a debt-free future for our middle class. Well, who hasn’t heard fairy tales before?
The Department of Education is hinting at a debt-relief rollout this Fall, with Secretary Miguel Cardona promising more steps toward “delivering student debt relief to borrowers who a broken system has let down.”
Joyce’s Response to Loan Forgiveness
Joyce brushed that off as pure election-year showboating. “Come on, folks, the Supreme Court already shot down this nonsense, ruling it illegal. But here we are, election year theatrics, plain and simple. It’s vote-chasing at its finest rather than fixing the problem,” he remarked.
In Joyce’s view, the solution isn’t giving universities a free pass. Instead, make these schools shift their focus. How about they start using their massive endowments to benefit students? Scholarships funded by endowments rather than federal loan guarantees? Now that’s a fresh idea. Maybe then, hardworking folks could get some relief from these hefty college bills.
Joyce wraps up with a zinger, “There are incredible people out there, working their tails off, who deserve scholarships funded by endowments. Let’s stop twisting kids’ arms with loans backed by Uncle Sam and start making these institutions pay their fair share.”
