
Two recent Supreme Court decisions addressed problems with higher education in America. In one decision, the Supreme Court outlawed affirmative action programs that discriminate on the basis of race. A second decision rejected the Biden Administration plan to forgive about $420 billion in student loans.
Both decisions seem reasonable on legal grounds. I’d like to believe that both decisions will fix problems with our system of higher education. But I fear that in some respects they might actually make things worse.
Reason magazine reports that the Biden administration is likely to look for alternative methods of forgiving student loans, which might be even costlier:
However, under the new plan, borrowers would have a radical reduction in the amount they would be expected to pay each month. Borrowers will only pay 5 percent of their discretionary income, or redefined income above 225 percent of the federal poverty rate, with forgiveness after 10 years if the balance is less than $12,000. Further, under the plan, if a borrower’s monthly payments are insufficient to cover interest, the government will cover the rest, and his balance will not grow. . . .
As Reason‘s Robby Soave wrote last August, “In the long-term, this aggressive move toward an income-driven model of repaying college loans will probably have a bigger impact—and that impact will be catastrophic. In fact, unless the government does something to constrain colleges’ ability to set their own prices, IDR could break the entire higher education financing system and lead to skyrocketing costs for taxpayers.”
The biggest effect of the new IDR is likely to be a rapid increase in college tuition, with graduate programs most affected. While dependent undergraduates can only borrow $27,000 over four years in federal student loans, graduate students have no such cap. As a result, the new IDR will encourage many graduate programs to push their costs higher and higher—and schools will likely justify the increase to students by directing them to take out an IDR to cover exorbitant tuition.
It’s too early to say how this new plan would hold up in court.
California voters outlawed consideration of race in college admissions back in 1996. It was no great loss, as the affirmative action program was not very effective. Here’s the New York Times:
Before 1996, affirmative action in the University of California system was in ill health. Black and Latino enrollment at top schools had stalled. Applications were falling and graduation rates low. At U.C.L.A. from 1992 to 1994, Black students had a 13.5 percent four-year graduation rate, according to data compiled by Mr. Sander, the U.C.L.A. law professor.
At first, enrollment of black and Hispanic students in the University of California system dropped sharply. But over the next few decades, enrollment from those minority groups rose back up close to 1996 levels. University of California administrators found alternative methods of favoring underrepresented minority groups:
Then the ban was enacted, and the most elite campuses, Berkeley and U.C.L.A., experienced calamitous drops in Black and Latino enrollment. It took a decade for that to reverse for Latinos. Black enrollment recovered much more slowly.
In the U.C. system as a whole, trends were less dire. Latino enrollment soon doubled. Black enrollment fell and recovered. Today, Black enrollment stands at 5 percent. (Black residents make up less than 6 percent of California’s population.) The overall six-year graduation rate of Black students stands at 77 percent. White enrollment fell to 18 percent today from 35 percent in 1996.
BTW, the NYT claim that “Black residents make up less than 6 percent of California’s population” links to this study:
No race or ethnic group constitutes a majority of California’s population: 39% of Californians are Latino, 35% are white, 15% are Asian American or Pacific Islander, 5% are Black, 4% are multiracial, and fewer than 1% are Native American or Alaska Natives, according to the 2020 Census.
So if black enrollment is 5% of the UC system, and blacks make up roughly 5% of California’s population, and affirmative action is outlawed at the University of California, then why would anyone expect the recent Supreme Court decision to have a major impact on affirmative action programs in other states? Where there’s a will, there’s a way.
Some have argued that universities will respond to this Supreme Court decision by even further de-emphasizing the role of objective measures such as test scores. It’s easier to justify policies that favor underrepresented minorities if you focus on factors such as geographical diversity and life experience.
There’s a perception that the Ivy League schools are currently trying to achieve affirmative action goals at the expense of Asian rather than white students, via techniques such as sports scholarships and policies that favor the children of (mostly white) big donors and former students. It’s easier to hold down Asian enrollment if test scores are de-emphasized.
To summarize, if there’s a strong political push to forgive student loans and favor underrepresented groups, it’s not at all clear that the Supreme Court can do much about it. More broadly, I suspect that people overestimate the impact of technical changes in the law, and underestimate the effects of cultural change. Younger readers might have been taught that the 1964 Civil Rights Act ended racial apartheid in America. That’s not completely false, but I suspect that about 90% of the reduction in racial discrimination in America during the 1960s was due to changing attitudes. (In fairness, the 1964 law may have modestly contributed to those changes.) Alternatively, many southern schools continued to segregate black students even after the 1954 Supreme Court decision that outlawed the practice. It’s difficult to force social change on an unwilling populace, and it’s hard to stop change once society has decided that something is unacceptable.
I hope I’m wrong about these two cases. I hope these decisions put an end to racial discrimination in college admission, and an end to the executive branch usurping the congressional power of the purse. But I expect that things won’t change very much, and indeed might even get worse. The Supreme Court is less powerful than it seems.
READER COMMENTS
Casual Observer
Jul 5 2023 at 5:20pm
“The Supreme Court is less powerful than it seems”. I agree, but tell that to all the people losing their minds over the court’s most recent decisions (including this one). Both Dems and Reps are guilty of throwing the court under the bus when decisions are made that they (Dem and Reps) don’t agree with, therefore is it any wonder why people have less confidence in the supreme court of the land?
It’s funny, all of this brought me back to my high school days. As mentioned in another post, I am an immigrant to this country. My folks settled in one of the “good” midwest states (good quality education), so it’s no surprise that I was one of few black students. Initially I struggled academically even though I came from a country where English was the official language. Eventually I got the hang of things; More or less.
However, one thing sticks out to me. During high school, us midwestern students ( I no longer live in the midwest btw) took the ACT for college admissions. I took it twice, scoring a 25 on the first attempt and 27 on the second without realizing that there were such things as prep classes/courses and ways to get the fees discounted since the cost were quite high (at least relative to what I could afford). (Note ACT max score is 36)
I vividly recall getting pamphlets like CRAZY telling me to apply to these elite schools. Man was I excited. Now, me being somewhat aware that applications cost money, I wanted to make sure I had a decent shot at these schools. Guess what…. All these schools had average ACT scores of 32/33 …. So you tell me, if your average applicants have these scores, why in the world would you send me ( a 27) these things? I didn’t bother applying to these places. I didnt understand race/affirmative action back then, but I still recall feeling a bit insulted, like I was being played…
As an example, I am a avid runner so lets use a running example. If there is a race (lets say a mile race) where all participants must apply to get in and lets say the average participant is running a 4 minute mile, why in the world would race organizers recommend a 5 minute miler apply?
In any case, as mentioned in other posts, I agree with the court’s decisions, but I suspect Dr. Sumner is correct in his analysis. “Where there’s a will, there’s a way”.
john hare
Jul 5 2023 at 7:25pm
You mention being an immigrant black. In my experience immigrant blacks are more ambitious with better attitudes than many (not all) southern blacks. I have one from Brazil and one from Haiti. Brains and drive can work around a language barrier as neither speaks English yet.
Casual Observer
Jul 6 2023 at 1:03am
Yes, as a black immigrant I’ve noticed that the mindset of blacks born here and those from abroad to be quite different. I’ve been told that this is because I grew up in country where I saw black doctors, lawyers, etc and this was the norm, therefore it wasn’t unrealistic for me to strive for these things. I guess this is how some people explain the victim mentality in the black community here?
This explanation still doesn’t make much sense to me considering that there are plenty of black doctors, engineers, and lawyers here.. Sure not as many as white and asians, but the notion that young black kids don’t have examples to look up to just seems like an excuse to me, but hey, maybe I am missing something?
Brains and drive really do make a difference. It is a bit disheartening that Black Americans, who are born in this country with endless opportunities (not to mention all the privileges!) still seem to fail to appreciate these two crucial things.
Note: I am being a bit general here with “Black Americans”. I am well aware that not all Blacks born here have this mindset. It just seems to be the majority!
Scott Sumner
Jul 5 2023 at 11:24pm
Good comment. Abortion is an example of the Court’s limited influence. It tried to legalize abortion in the 1970s, but in the long run the pro-life forces were too strong to resist and abortion bans have re-appeared in some states. In the long run, policy reflects the culture. The death penalty is another example.
MarkW
Jul 6 2023 at 6:41am
In the long run, policy reflects the culture.
In general, yes. But, for example, right now (and really for some time), culture has not been very favorable to free speech. But because policy is constrained by the constitution and because a supermajority is required to amend the constitution, policy (fortunately) remains far more protective of free speech than it would if it simply followed culture.
John Hawkins
Jul 7 2023 at 1:26pm
I think we’re sadly still in the short run on this one (i.e. I don’t think it is a point against the claim), and it is tbd what the long run outcome will be…
MarkW
Jul 5 2023 at 6:50pm
No, higher Ed has not been fixed, and yes, what the universities and the Biden administration do as workarounds may end up being worse. Even so, these were correct, necessary decisions.
MarkW
Jul 6 2023 at 6:48am
Additionally, few after Brown v Board of Education would have asked if public education was ‘fixed’ or whether the decision might backfire because segregation proponents would come up with something worse as a workaround — as arguably they did by abandoning urban school systems in favor of private and suburban schools, leaving Black students no better off and in school systems that remained in many places as segregated and low-performing as before. Or maybe Brown played a minor role in the post-war move to the suburbs, which had already been underway. We can never know for sure. But these kinds of considerations really don’t belong in Supreme Court deliberations.
steve
Jul 5 2023 at 9:30pm
“why would anyone expect the recent Supreme Court decision to have a major impact on affirmative action programs in other states?”
You already answered that.
“Then the ban was enacted, and the most elite campuses, Berkeley and U.C.L.A., experienced calamitous drops in Black and Latino enrollment. It took a decade for that to reverse for Latinos. Black enrollment recovered much more slowly.”
We should expect a drop which will take a while to recover. Will take a while for other states to sort things out. Overall though, this ruling wont change much. Black students overwhelmingly go to non selective schools where affirmative action has not been needed. So what we are really talking about is a relatively small number of spots at the highly selective schools. Many black students at those schools have SATs within range of what they normally accept. The extra few hundred white or Asian kids who get the slots that might have gone to black kids wont change our schools.
On the loans, the schools ought to be on the hook for a lot of that money. The student may or may not benefit from the loan but the schools always benefit. If they are liable they have the incentives, that they dont have now, to screen for kids at high risk of failure. Maybe even dump the majors that never result in kids getting jobs. Maybe they charge students less and pay professors less for majors that result in poor paying jobs. This would lead to much bigger and better changes than stopping AA.
Steve
Scott H.
Jul 6 2023 at 7:58am
Yes. The objective importance of Ivy League admittance is probably pretty low. Does anyone believe that these schools actually educate better than the others? And does it really matter what school people went to with the proliferation of DEI programs out there in corporate America?
What is more important? A culture where we have a (growing?) army of dime store equity analysts undermining merit in a fervorous quest to implement their racist world views. I think Prof. Sumner is correct to think this ruling will not do much to reverse that tide.
Jose Pablo
Jul 8 2023 at 10:13am
The objective importance of Ivy League admittance is probably pretty low
and yet, they manage to command a ridiculously high price with an awful “level of service”.
My experience: I enrolled my kid this summer in a two week Brown summer program with a $7,000 price tag (¿!!?). First thing I had to do was standing in a queue for 3 hours on a Sunday morning under the scorching Providence’s sun.
No kidding … if a college does not know how to organize the check-in procedure, knowing in advance: a) the number of kids arriving that day and b) the rate at which their employees/volunteers are able to clear the students; then, very likely, it is not worth listening to whatever they pretend they can teach you.
“Tagging” kids forehead has become a ridiculously expensive business. It is the “signal”, not the education, what you are paying for. The price is ridiculously high for the value provided. As a proof, the fact that students cannot payback the debt incurred in order to get the education that was supposed to provide them with a steady income.
I doubt the SCOTUS can correct that. I don’t even have a clear diagnosis of why that is happening. It is very unlikely that a problem can be addressed without a proper understanding of its root causes.
Carl
Jul 7 2023 at 4:57pm
I agree. The schools should have to co-sign government funded student loans. As it stands today they get paid in full regardless of whether they produce a viable graduate.
Peter Gerdes
Jul 6 2023 at 9:26am
I think it’s less that people overestimate the impact of the Supreme court’s decision in Harvard and more that consequentialist impact was never the point.
While there are a number of reasons (which I’m open to considering) one might favor certain racial preference schemes in college admissions they rely on very different theories that imply very different conclusions (see 1 below).
Yes, often people haven’t given their policy preferences deep thoughts but usually they can give you at least a plausible mechanism/justification for their support and will at least superficially act like their reasons motivate their conclusions.
I’ve yet to ask someone (except a philosopher) why they support affirmative action and have them either accept the implications of their moral justification (eg reparations only go to descendents of those injured not recent immigrants) or agree that affirmative action should stand or fall with the outcome of any particular empirical claim. Even ardent drug warriors and hippies (neither paragons of rationality) will say their view turns on truth of some empirical claim (even if you won’t change their mind on it). They might not really change their mind if it was proved the other way but people don’t even try with affirmative action.
That’s not to say anything about the validity of those arguments but it’s just not what’s even pretending to drive people’s views. They want to express who they feel empathy for and policy is secondary.
1: For instance, reparations models should exclude families of recent immigrants and be indifferent to pushing a group’s representation in the university (eg descendents of interned Japanese etc) over it in the population. Theories about leveling the playing field in face of past discrimination reducing intergenerational wealth must grapple with fact that every poor child is equally not responsible for that poverty (note leveling is an equitable concept while reparations are damages).
And the many consequentialist theories have equally varied implications. If it’s about creating visible minority role models in disciplines which lack them mismatch concerns are serious worries as students who attend more elite colleges are more likely to shift to easier majors. Also, if taken seriously this theory suggests that massively increasing skilled immigration from Africa might be a more efficient approach.
OTOH if the theory is either that increasing minority wealth will have a positive social impact (eg they’ll donate to relevant causes) mismatch is probably not an issue though again why not just import the richest/skilled minorities. Also, it does raise the question of why organize support around college admissions not other ways to shift wealth.
OTOH if the theory is that having minority students in their classes will make the white students less racist than we probably need to be really sure racial preferences don’t fuck this up. My personal experience strongly suggests that strong gender preferences at MIT but not Caltech in 90s meant that women were assumed to belong in the hard classes at Caltech but not MIT. Perhaps that’s less of an issue given most classes at ivies aren’t hard relative to admissions but surely something one should check first.
And all of these consequences need to be balanced with some estimate of harms. Many people way overestimate the extent of affirmative action and use it as an excuse to justify bias against minorities in hiring (either bc they assume they’ll underperform resume or to level playing field).
Travis Allison
Jul 6 2023 at 1:19pm
The WSJ has an article saying that the composition of UC freshmen classes doesn’t reflect the ethnic breakdown of high school seniors.
https://www.wsj.com/articles/supreme-court-affirmative-action-college-admissions-e3de89d8
What’s weird is that the NYTimes says that black enrollment is at 5% while the WSJ article says that is at 2.4%. Perhaps the different statistics are due to a different definition of black.
nobody.really
Jul 6 2023 at 3:15pm
No, we’ll need much stronger measures if we want to render higher education incapable of reproducing.
Jose Pablo
Jul 9 2023 at 11:17am
render higher education incapable of reproducing.
By all means a laudable goal!!
Comments are closed.