America’s universities profit from a system that turns teenage ignorance and inexperience into guaranteed revenue through federal student loans. While Democrats continue to peddle unworkable debt “forgiveness” schemes that would transfer the financial burden to taxpayers without addressing the root problem, President Donald Trump and congressional Republicans have an opportunity to empower students and reform this predatory lending scheme by incentivizing structured gap years.
Specifically, the federal government should offer lower student loan interest rates to students who complete a year of full-time work or meaningful charitable service after high school. Such a requirement would reduce reckless borrowing and better align higher education with the job market. As an additional benefit, once armed with labor-market knowledge and the wisdom of a year or two in the “real world,” students would be far less inclined to pursue ideological majors like Critical Race Studies and Gender Studies – reforming higher education from within.
Under the current higher education federal lending model, university administrators and student loan companies have shaped a business that captures 18-year-old Americans at their most vulnerable moment and funnels them straight to college immediately after high school. The vast majority of these students have no experience and no idea what sort of career they’d like to pursue. Many end up in majors with no serious job prospects or on a career path that doesn’t align with their skills and passions.
In short, fresh high school graduates are the antithesis of informed consumers – and American higher education has preyed on that fact for decades.
The numbers bear this out. In 1995, total federal student loan debt stood at roughly $187 billion. Today, it has ballooned to nearly $1.67 trillion, an astonishing increase of more than 836 percent.
The damage to students is just as severe. In 2000, the average graduate with a bachelor’s degree carried $17,480 in debt. By 2020, that figure had surged nearly 75 percent to $30,500. And in 2025, the average borrower now shoulders a staggering $42,673 in student loan debt.
The rising cost of college tuition suspiciously follows these borrowing trends. Tuition and fees have skyrocketed more than 259 percent since 1995. For context, inflation rose roughly 92 percent during the same timeframe.
Only in the higher education bureaucracy could this kind of math make sense.
Economic scholars refer to this business scheme as the Bennett Hypothesis. In 1987, then-Education Secretary William J. Bennett warned in a New York Times op-ed titled “Our Greedy Colleges” that unlimited federal aid would allow universities to raise prices endlessly without improving quality.
“Higher education is not underfunded,” Bennett presciently wrote. “It is under-accountable and under-productive… [Students] deserve an education commensurate with the large sums paid by parents and taxpayers and donors.”
He was right. And today’s data only vindicates him further.
A study published by the American Enterprise Institute earlier this year found that most college employees do not teach, even though that is the purported primary function of higher education.
The expansive layers of “administrative bloat” at many universities have become a primary driver of soaring college costs and the diversion of resources away from actual instruction. Students shoulder ever-higher tuition bills while taxpayers are compelled to pour more public dollars into maintaining growing bureaucracies instead of supporting real learning.
The Trump administration this year tightened the bolts of accountability to curb runaway college bureaucracies through a series of executive actions. The One Big Beautiful Bill Act also placed caps on federal student loan borrowing to help clean up this disastrous situation.
But there is still one other major unexplored solution: empowering students themselves.
Universities thrive because students enter campus with no real-world baseline, no labor-market experience, and no idea how poorly ideological majors will serve them in adulthood. A structured gap year would change that for many.
The research is clear. Students who take a structured gap year outperform their peers who enroll in college immediately after high school. The Gap Year Association’s annual surveys report improved engagement, clearer purpose, and higher graduation rates among gap-year participants.
Research also points to the importance of structure for gap years. A 2024 analysis found that gap years are most beneficial when they are framed formally, not simply as “time off,” especially for students at community colleges.
Gap years also steer students toward alternatives to college – which is likely why higher education administrators are so reluctant to embrace them. Vocational and skills-training programs have surged nearly 20 percent in the past five years, growing for three consecutive years as young Americans reject the high school-to-college conveyor belt.
Students who take advantage of a gap year are not wasting time in stuffy classrooms listening to lectures on “decolonizing geometry.” They’re finishing job training in months, entering the workforce with momentum, and earning competitive wages without six-figure debt.
According to Glassdoor, the average entry-level white-collar salary sits around $48,000 a year. Meanwhile, the Bureau of Labor Statistics reports that blue-collar workers in construction, maintenance, production, and transportation earn roughly $24 an hour, or nearly $50,000 annually, without the burden of college debt.
In other words, the path to prosperity increasingly runs through hard skills, not paper credentials. And blue-collar jobs have never been more in demand. If more students took a gap year, they’d be able to see this first-hand.
Reshaping financial aid to reward gap years would not merely tweak a broken system; it would begin to rebuild a culture that has spent decades teaching young Americans that the only respectable career path runs through overpriced lecture halls and federally backed debt.
A Trump-led shift could produce students who are more informed consumers, not captive revenue streams. This would be more than education reform. It would be an economic and cultural course correction. It would expose predatory tuition increases and starve the college bureaucrats who have grown rich exploiting the confusion and anxiety of teenagers.
The student debt crisis was engineered, and it can be unwound. But it starts by changing student behavior before the federal government ever writes another blank check to America’s greedy colleges.
W.J. Lee has served in the White House, NASA, on multiple political campaigns, and in nearly all levels of government. In his free time, he enjoys the “three R’s” – reading, running, and writing.
