Purdue President Daniels: Schools Should Cover Costs of Canceled Loans Instead of Taxpayers, ‘It’s a Breach of Warranty’ on Part of Schools

On Tuesday’s broadcast of the Fox Business Network’s “Cavuto: Coast to Coast,” Purdue University President and former Indiana Gov. Mitch Daniels (R) said that when people fail to pay off their student loans, “it’s a breach of warranty on the part of a university” because people either didn’t get the skills they needed or develop personal responsibility, and “When that happens, we should be at risk, at least cover part of the cost that the taxpayers are otherwise going to bear.”

Daniels stated, [relevant remarks begin around 1:30] “When a university sends a young person into the world with the diploma, it ought to connote that person has learned something of marketable value, and, certainly here at Purdue, we believe part of our job is to foster character traits like personal responsibility. 99% of our graduates pay back any student loan that they took out, and we’re proud of that. But I don’t really know what to tell them now when others who didn’t either acquire the necessary skills or choose to live up to their obligations are suddenly freed from those. To me, it’s a breach of warranty on the part of a university. When that happens, we should be at risk, at least cover part of the cost that the taxpayers are otherwise going to bear.”

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