, provided by the institution, of sufficient success in graduating students of a specific preparedness level and placing them into viable jobs with sufficient income to permit repayment of the loans. this unfortunately contrasts with the current student loan system. we see evidence of problems associated with the lack of careful underwriting standards for educational matches that are supported by student debt. for example, current performance for some degree programs and some universities are problematically weak, in terms of degree completion rates and loan repayment rates. there have been reports of some schools in cities with large minority populations and low - income residents who tried to build enrollment by encouraging academically under - qualified students to apply for loans that they would be unlikely to be able to repay, especially if they received a substandard education. these practices bis central bankers ’ speeches undermine our commitment to financing effective higher education matches, and it is important that they be addressed. conclusion nothing in the analyses i discussed with you undermines the strong case for completing a college degree for prospective students who match well with a particular college. rather we see our evidence as suggesting that the way we as society finance those degrees – with an increasing reliance on debt held by the students – has costs to both borrowers and lenders that are only now becoming clear. given the social benefits of an educated population, we see a strong case for some public role in financing college. nonetheless, there are many private benefits, including higher lifetime earnings to be had by the successful college graduate. therefore it is likely that the best system of finance also includes a tuition payment by the student. because many prospective students are credit and liquidity constrained, and because of the limited enforceability of debt, we outlined the case for a government - supported student loan program to support the payment of tuition. however, we see a case for stronger underwriting standards that would assess the likely quality and outcome of the education match between a prospective student and the educational institution, which would better deliver resources to high potential educational matches, and avoid encouraging poor ones. we ’ ve learned a lot over the past several years about how student loans are affecting individual borrowers, the taxpayers and the aggregate economy. we ’ ve by no means answered all the relevant questions, and with over a trillion dollars in outstanding debt and the future of our workforce at stake, i consider these issues to be of first - order importance to the nation. we at the new york fed will continue to search for new facts to put on the table and push the debate

central bankers'speeches conclusion developing career - building programs that meet the needs of local employers and are accessible to job seekers is critical to bridging the skills gap. collaboration is a key component of any successful program. by joining together, we can advance the economic resilience of rural areas like columbia and greene counties - and strengthen our jenga tower. 1 columbia - greene lwda local plan, july 1, 2021 a€ “ june 30, 2025. 2 office of the new york state comptroller, availability, access and affordability : understanding broadband challenges in new york state, september 2021. 3 investing in america's workforce, a federal reserve system initiative in collaboration with the heldrich center for workforce development at rutgers university, the ray marshall center at the university of texas at austin, and the w. e. upjohn institute for employment research ( 2019 ). 4 federal reserve bank of new york, employer engagement by community colleges in new york state, november 2018. 5 andrew dumont, investing in rural prosperity : a framework for advancing economic resilience and opportunity, may 19, 2022. 3 / 3 bis - central bankers'speeches