Student loan bankruptcy

[LegendKiller]

The issue with administrator pay pivots on the issue with executive pay. The responsibilities of the top administrators of a large university are similar in scope and nature to those of the top executives of medium-large corporations. Thus to keep good administrators it is necessary to compensate them sufficiently to keep them from jumping to industry.

Given that executive level compensation has been growing like Jack's beanstalk, it's no surprise that administrator compensation has been rising fast as well. Even as it is, I would say that administrator comp is insufficient to keep the really good talent - hence the really shitty leadership at most universities.

you do realize how salary packages are set at companies, right? There are people who manipulate the whole thing, they make a lot of money doing it themselves.

There are plenty of competent people to run the universities.

 

[DCal430]

To be clear the federal government never serviced direct loans it self. It uses companies like Xerox, Salle Mae, and some states like Pennsylvania to service its direct loans. My direct loan for example went from being serviced by Xerox Corporation to State of Missouri, it was never directly serviced by the federal government. It was transferred as Xerox contract to service direct loans ended.

In fact until 2010 all direct loans were serviced by Xerox, but Xerox contract ended around the same time the FFEL program ended. With a few of the old banks under FFEL becoming the new servicer for the direct loan program.