Trump’s Liberation Day: This Boy Could Fuck Up Boiling Water
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[image: Trump’s Liberation Day: This Boy Could Fuck Up Boiling Water]
So, Trump’s tariffs are out. He claims they’re half of what each country
tariffs the...
1 day ago
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It will be a good thing and a bad thing. More people will be enticed into going to college, causing a further over-supply of college grads. But yet, at least fewer people will be strapped with private loans - at atrocious interest rates and terrible loan terms.
ReplyDeleteHere's the problem with more Pell grant monies available to students...the colleges will hike up tuition. It's already happening.
ReplyDeleteAnother thing that will happen is that more of those for-profit "colleges" like University of Phoenix will lure people in just to take advantage of the grants and government-backed Direct Loans.
Maybe the NY Times is right and prospective students should rethink higher ed altogether:
http://www.nytimes.com/2010/05/16/weekinreview/16steinberg.html?src=me&ref=general
To know what it takes to solve the problem of students being fleeced, you first need to understand the nature of the problem. College tuitions are so expensive because the government guarantees student loans. Guaranteeing student loans signals universities to hike up tuition rates.
ReplyDeleteUnfortunately for all of us, this proposal is nothing but bad news. Loaning directly to students while reducing the amount a student is required to repay will actually encourage colleges and universities to increase tuitions even faster, as students will be more willing to assume larger debts which they are not legally required to repay. Further, taxpayers will be forced to pick up a much larger share of inflated tuitions and absorb bigger losses on defaulted loans.
In sum, college tuitions are so high because government involvement is preventing free market forces from properly functioning. The answer is less government involvement in education, not more government involvement.
For more on how government involvement causes tuition costs to skyrocket, see:
http://www.youtube.com/watch?v=ei2CH9A3H8U
I'm sure everything will be great now (*ignore reporting about pretty much null effect of the government's foreclosure program)! Over 2000 years ago, Democritus the Laughing Philosopher thought "Education is an ornament for the prosperous and a refuge for the unfortunate." It does me good to see that we carry on as many Greek traditions as we can in our modern democracy.
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ReplyDeleteGovernment is supposed to be representative of the will of the people. In theory, the politicians are being convinced that eduction is the source of power and prosperity. That, rather than simply "the government" is the force that needs to be rehabilitated before there can be any change to the approach the fed uses when financing student loans.
The same thing happened in the mortgage market, to wit: Fannie Mae, Freddy Mac. The bootom line is the less government intervention, the better. Let the free market rule and hopefully tuition costs will normalize over time. When the gov't increases the amount of loans available to students, this is money grab by the schools to increase the tuition accordingly. Thankfully I'm done with school.
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