Name any other industry that gets a detailed map of your finances and savings before issuing a price for their services. It's a recipe for maximal extraction.
The government. I pay more in taxes not because I use more roads, need more protection from our military, or send more kids to the local school. I pay more because the government knows I can afford it. That is how the system was designed and it is completely appropriate in my opinion. College is just a continuation of that since it is in part funded by the government. Except in recent decades we have shifted the burden from the overall taxpayer to the students themselves (and their parents). However the basic idea that the people who have more money should pay more for the service has stuck around. I can't say I disagree with that approach even if it does incentivize weird loopholes like the one discussed in the article.
I agree with people with more paying more into the general fund of the government. But when major parts of the US budget get deficit funded, why does higher education get individually loaded cost wise? It makes no sense, there's no real need to discourage people from getting too much education. And long term loans, are just as inflationary to issue to the economy - and when you collect the interest back long term, you're just causing a drag on economic expansion.
I completely agree with you that this approach to education isn't ideal and that we collectively would be better off if the onus for funding education was shifted back to the general tax payer again. That said, if you have a system in which the education dollars are limits, like we currently do, the best approach in my opinion is to charge people based on their ability to pay.
> Name any other industry that gets a detailed map of your finances and savings before issuing a price for their services.
But, higher ed doesn't. They set a price in advance, and get that information if/when you ask for a public subsidy (which the university may require you to do and to share the information as a condition of offering their own discounts, framed as self-issued subsidiies.) Pretty much every industry can ask for that kind of information as a condition of offering discounts, though they may not have public subsidies available or be able to get the information used in public subsidy applications directly.
They set an extremely high price in advance and give discounts based on that information. So unless you can afford the fully fund that price out of pocket, you have to come to the table and get gov't help, which then requires the disclosure. And this is across the entire system, so it's not like you can go to a differently behaving entity.
