Earlier quoted context omitted.
Well, students can't default on their loans, so this time round it's more interesting.
100% guaranteed bailout.
"Too big to fail..by law"
Tuition costs have risen 710% since 1983
621–630 of 771 posts
Re: Tuition costs have risen 710% since 1983
#622Earlier quoted context omitted.
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…
Excuse my ignorance, but isn’t the point of public schools that they are free?
K-12 are "free" (funded in large part by property taxes, as I understand it). Higher Education is not, though public colleges tend to be cheaper, from what I've seen.
Re: Tuition costs have risen 710% since 1983
#623Earlier quoted context omitted.
We learned that people like to gamble and that it’s easy to push things forwards. Also, better jump on the loan band wagon, or you’ll be left out. Anyone without a mortgage + houw which appreciated has basically been robbed by people who do
This is why I’m 100% sure we’re headed towards another real estate meltdown sooner or later. Real estate prices and rates have skyrocketed. The number of people who could afford 500k mortgages at 3% is much higher than people who can afford 750k mortgages at 7%. But lenders aren’t going to suddenly go from approving 100 loans a month to just 10 a month. The incentive structures are designed to weasel and lie to pump…
The problem with that is there still is very strong demand for new home buyers, many of whom just couldn't find anywhere to buy.
Yes prices are crazy but if demand is still not being met, then prices are meant to be crazy.
Re: Tuition costs have risen 710% since 1983
#624Earlier quoted context omitted.
Crazy idea, but how about the gov just gives kids from not-ideal backgrounds access to grants and scholarships, rather than credit.
They do though. I was a Pell Grant recipient. All I did was fill out the FAFSA and the grant was automatically applied. That got me through community college debt free. When I transferred to a 4-year, I once again filled out the FAFSA and was eligible for an interest-free loan which covered the difference between tuition and my Pell Grant.
Another crazy thought than. How about government simply pays for education. Sort of like universal income, but with education. No grants, no loans, just free education.
Re: Tuition costs have risen 710% since 1983
#625Earlier quoted context omitted.
It doesn't. Just like the evangelicals see God in every leaf and water drop, the neoclassicalists will read any evidence and always see the same conclusion. The article doesn't blame government at all. It's way more nuanced but ideologues will only see what they want to see.
I was talking about the "average cost of private school" data. Which part is a slam dunk on "neoclassical" econ? Or even the original article. I'm not disagreeing just curious how you came to that conclusion. The data linked above suggests Catholic schools are the most affordable. Priors confirmed - theocracy is the only way forward.
I was responding to an author in the thread, not to the author of the article.
Catholic schools are financially structured in rather unique ways. They're controlled by clerical orders which are technically financially independent from the Vatican, kind of like a franchise.
Together, the institutions under a specific clerical order operate collectively kind of like a cooperative so money flows around differently than most schools.
Weirdly, schools that used to be but no longer are religious seem to now be some of the most expensive. For instance, Tufts, USC and Yale.
The rise in tuition is because college has been increasingly seen as a personal, private transaction and not as a social good.
This reframing of the institution as a market based services purchase is the rationale for the policies that have caused all the other problems
Catholic schools might also be cheaper because these clerical orders are ostensibly tasked with social welfare so they are still partially operating under the old model before the Milton Friedman mind virus.
Re: Tuition costs have risen 710% since 1983
#626Earlier 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.
Price controls are one of the few things that economists on both sides of the political aisle agree do not work, and/or have unintended consequences which are worse than the problem they attempt to resolve. https://www.econlib.org/the-consensus-on-price-controls/
That depends on what it means for this to be "working"
Re: Tuition costs have risen 710% since 1983
#627Earlier quoted context omitted.
Have we learned...nothing?
Well, students can't default on their loans, so this time round it's more interesting.
Effectively a stealth tax for most graduates, if they can't ever hope to repay it. But regressive if you're rich enough to pay it off… or never have need for it to begin with.
Re: Tuition costs have risen 710% since 1983
#628My preferred solution is to establish an open university in the US (or make it borderless), through which anyone can earn a degree remotely for as little cost as possible -- like $5000 per year or $20k per degree. Georgia Tech and others have shown this is possible (see their 13 MS degree programs in engineering). Certainly by enlisting the growing set of tools used for remote professional collaboration, it should be…
See:
- Western Governors University (WGU)
- Open University (OU)
Both online; both relatively cheap.
N.B. Georgia Tech’s online masters programs are professional masters and not research/thesis masters — so unless you are getting paid by someone else to get them, they are almost certainly a waste of money (and there is negative selection pressure during hiring for people with these sorts of degrees).
Re: Tuition costs have risen 710% since 1983
#629Earlier quoted context omitted.
Since there is pretty much no social safety net, people are probably going to find some sort of work even if they have a lot of student loan debt. And, the debt servicer can garnish those wages. You are essentially selling yourself into slavery if you take a student loan! (And the reasoning is so weird to me; I went to a state school and tuition was $750/semester. Why are people paying more unless they are extremely…
You're entirely right, but if I have $200K in debt for my useless undergrad degree, and I can only find a job at Starbucks, garnishment or not the bank is not getting their money back. The court will order some kind of payment, sure, but they'll prioritize me paying for rent and food.
I agree with that. Having that money taken out of your paycheck just makes you extra miserable; you're in debt, you get yelled at for not making Karen's coffee right for 8 hours in a row, and you don't even have enough spending money to go see a movie or whatever. It's just miserable and I don't like it; if you have to take a shitty job to feed yourself, you shouldn't have to live a completely miserable life 24/7. That just doesn't seem right to me.
Re: Tuition costs have risen 710% since 1983
#630Earlier quoted context omitted.
Where does it say that? Btw private school looks quite affordable. I used to think my neighbor was rich, they were, but for only $20k/yr you can send 2 kids to private school? That is cheaper than daycare.
If you're paying $20k for daycare and there's not really a free option, that's just what you have to do. If you're paying $20k for private school, and there's a free option (public school) - you obviously have a healthy amount of disposable income.
> If you're paying $20k for private school,
The link says the average for HS is $15.6k; if that's a mathematical mean, that's going to be driven up by a handful of very expensive schools.
> and there's a free option (public school)
Most public schools in the US are garbage.
> - you obviously have a healthy amount of disposable income.
Or make frugal choices elsewhere, or receive scholarships/ financial aid, likely both.
Yes, that's right, parents can drive an older car and skip buying a bigger TV and cook at home and save money in all kinds of ways, and private schools offer scholarships and financial aid to advance missions of service.