Open Letter to the Trump Administration Regarding the Department of Education and the Future of College Affordability

Dear President Trump and Members of the Administration,

I am writing to propose a new approach to the student loan crisis, which has continued to escalate under the current federal loan backing system. Instead of relying on federal loan guarantees, I propose a more sustainable, market-driven solution that could force a market correction in higher education costs, ensuring that students and taxpayers alike are no longer burdened with unsustainable debt.

The Problem:

The student loan system in the United States has created a situation where students are saddled with debt that often far exceeds the potential earnings from their chosen career paths. As of now, universities can raise tuition costs with little restraint, knowing that federal loans will foot the bill. This lack of oversight and accountability has led to an unprecedented rise in tuition fees, with very little correlation between the cost of education and the actual earning potential of graduates.

College professor salaries have ballooned well beyond their value, most in academia have little to no practical experience to offer. Campuses expand with buildings and elaborate programs to entice and attract young students. Many degrees are offered at universities that will provide little to no return on investment. These issues are due to the cart blanche checks guaranteed to higher education facilities by the federal government.

The Data:

Let us take a look at the alarming rise in tuition costs over the past few decades:

• Tuition and fees at private national universities have jumped by about 126%.
• Out-of-state tuition and fees at public National Universities have risen by about 112%.
• In-state tuition and fees at public National Universities have soared by about 133%.

When adjusted for inflation:

• Tuition and fees at private National Universities have increased by approximately 41%.
• Out-of-state tuition and fees at public National Universities have risen by about 32%.
• In-state tuition and fees at public National Universities have grown about 45%.[i]

These statistics reflect the unsustainable rise in education costs, which have far outpaced inflation and wage growth. Despite these increases, the quality of education and the post-graduation earning potential for many graduates has not kept pace. This imbalance has created an environment in which young people are burdened with enormous amounts of debt, often with little guarantee of a high-paying job after graduation.

The Proposed Solution:

Rather than continuing to provide federal loan backing for tuition costs, I propose a loan program for students who need financial assistance. Under this program, students would be able to attend college for free, and instead of paying tuition upfront, they would agree to a percentage-based repayment system after graduation.

Here’s how it would work:

1. Free Tuition for Eligible Students: Universities would offer free education to students who cannot afford tuition. This program would only apply to students whose families meet specific financial need criteria.
2. Post-Graduation Repayment: After graduation, students would repay the cost of their degree based on a percentage of their income for a set number of years. For example, if a graduate earns $50,000 per year, they would pay 5% of their salary to cover the cost of their education for a defined repayment period, such as 15 years.
3. Market-Driven Correction: By linking repayment to post-graduation earnings, universities would be incentivized to provide degrees that are valued in the labor market. Degrees in fields with low earning potential would result in lower repayment amounts, while degrees in high-demand, high-paying industries would lead to higher repayment amounts. This would create an economic incentive for universities to evaluate the market value of their degree programs and adjust accordingly.
4. Accountability and Efficiency: This system would force universities to focus on efficiency and value. Without the ability to rely on government-backed loans for students who can afford to pay, universities would be required to offer programs that lead to solid job prospects. Schools would also be forced to evaluate whether their existing programs are preparing students for industries with fair wages and meaningful employment opportunities.
5. Affluent Students Are Not Affected: Students from wealthier families, who are able to pay for their education upfront, would not be affected by this program. Universities would continue to charge tuition as they do today for students who can afford to pay, and the proposed loan program would only apply to those in financial need.

A Growing Concern: DOGE and Government Involvement

In light of these issues, it’s also worth noting that companies like DOGE, headed by Elon Musk, have been in hot water lately with their controversial moves in the Federal Government[ii]. While their intentions may be well-meaning, the involvement of such companies in government-backed initiatives has raised concerns about the direction of public policy. The education sector, much like other industries, must remain focused on the welfare of students and taxpayers, not driven by market interests or profit motives. We need to ensure that any changes made to student loan programs prioritize the best interests of our citizens, particularly the vulnerable students who cannot afford the rising cost of education.

Conclusion:

The current student loan system, while well-intentioned, has created a financial burden on students, families, and the nation as a whole. By shifting the focus from federal loan backing to a performance-based loan system tied to post-graduation earnings, we can force universities to reevaluate their pricing structures and degree offerings. This solution would not only make higher education more affordable for students who truly need help, but it would also encourage schools to provide more valuable education that aligns with the needs of the labor market.

I urge you to consider this proposal as a way to provide students with an education that is both valuable and affordable, while also addressing the escalating costs that have become a major concern for American families.

Peter Hibbard is an Attorney from Moses Lake, Washington. Peter is a husband and father of five boys. He has practiced as a lawyer for over 8 years, primarily in Moses Lake, WA in criminal law.

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[i] Wood, Sarah, “A Look at 20 Years of Tuition Costs at National Universities”, US News, Sept. 24, 2024, https://www.usnews.com/education/best-colleges/paying-for-college/articles/see-20-years-of-tuition-growth-at-national-universities

[ii] The Feed, “Is Elon Musk’s DOGE leadership driving US toward recession and hiring freezes? Here’s what top economist says”, The Economic Times, February 21, 2025, https://economictimes.indiatimes.com/news/international/us/is-elon-musks-doge-leadership-driving-us-toward-recession-and-hiring-freezes-heres-what-top-economist-says/articleshow/118487671.cms?from=mdr