301–310 of 771 posts
Earlier quoted context omitted.
I hope to see the day where interest bearing loans are recognized by the rest of the world as the evil they are. Muslims and Jews know this fact quite well.
This seems good in theory but hard in reality. The modern economy is built on debt being used for new investments. The problem is high interest rates, not interest rates in general.
The only service category that has outpaced higher education is hospital services. https://www.aei.org/carpe-diem/chart-of-the-day-or-century/
Most of the 'service' industry is subsidized by cheap foreign labor. Harder for Schools and Hospitals to hire illegal/unskilled workers.
Earlier quoted context omitted.
The government cannot and will not do that, because such a policy would have racially disparate impacts.
The government actually can do, and often does, policy with racially disparate impacts. Disparate impact is not a Constitutional limit on government discrimination, its a judicially-created rule in the application of certain statutory anti-discrimination laws. (And the disparate impact rule is politically and legally unpopular with the same faction that currently dominates the Supreme Court and whose members on the C…
Earlier quoted context omitted.
If only governments could make…laws to restrict the price of University. Or…could limit the maximum loan size thus encouraging Universities to not charge more than that.
Proper solution is government to stop guaranteeing the loans and to allow people to put them in bankruptcy. Prices will collapse to what people are willing to pay in real time, or save up for.
Proper thing is for the government to stop issuing the loans, and instead do need-based grants plus establish cost and quality controls for institutions that wish to be grant eligible, while prioritizing federal institutional funding other than direct student aid for institutions that, whether througj grant eligibility or their own pricing and in-house aid programs, or both, meet set financial accessibility standards.
It is free money for lenders because backed by the Govt AND protected against bankruptcy. It is Free money for colleges because they know they will get paid regardless. Remove this "free money guarantee" and watch how market corrects itself. When students can file for bankruptcy and/or the debt is not guaranteed by Govt, lenders would now use the same criteria they use to issue credit cards to 18 year olds. Hint: It'…
There needs to be some formal patronage of the arts, but I have no idea how to pursue that.
Earlier quoted context omitted.
> lenders that are taking on too much risk The lenders are taking no risks since these loans cannot be discharged through bankruptcy. There are also very large late fees and penalties that can triple (or more) the amount owed.
Now I read that Wall Street is creating CDO's based on these loans, like they (continue to) do on mortgages. Some people die "early" without paying back these loans, and sometimes, they will owe more than they took out. Given the mounting problems with the numbers here, it seems a whole generation of people in the middle of this bubble are going to go to the grave while still owing on these loans. What happens to the…
One thing that was mentioned in the article, but which seems to be missing from the discussion is the decrease in state funding for higher education. When I was looking for colleges in the 80s, the most expensive private schools were on the order of $20K all in. Those same schools are on the order of $85K all in, which is an increase of "only" (hah) 450%. However, my alma mater (SUNY Buffalo) has increased in-state t…
As of July 2023, the average rent for a 1-bedroom apartment in SUNY College Purchase, NY is $2,696. This is a 12% increase compared to the previous year. https://www.zumper.com/rent-research/near-suny-college-purch...
I am beginning to believe that the root cause of tuition costs in the US exceeding inflation is based much more on FOMO on the benefits of college education rather than federal government guarantees on student loans. My claim is that buyers (parents+children) of college degrees are maybe not behaving rationally with respect to cost. High-cost schools position themselves as offering a "better" outcome or opportunity t…
Earlier quoted context omitted.
> lenders that are taking on too much risk The lenders are taking no risks since these loans cannot be discharged through bankruptcy. There are also very large late fees and penalties that can triple (or more) the amount owed.
Now I read that Wall Street is creating CDO's based on these loans, like they (continue to) do on mortgages. Some people die "early" without paying back these loans, and sometimes, they will owe more than they took out. Given the mounting problems with the numbers here, it seems a whole generation of people in the middle of this bubble are going to go to the grave while still owing on these loans. What happens to the…