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Old 03-19-2019, 09:07 AM
 
956 posts, read 193,453 times
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Support for caps reflects realization that student loan borrowing by graduate students and parents of undergrads allows schools to charge ever higher prices for tuition, fees, and room & board.

Quote:
WASHINGTON—The White House is calling on Congress to cap how much graduate students and parents of undergraduates can borrow in federal student loans, a proposal it said is aimed at curbing rising college costs...

Graduate students and parents can borrow as much as schools charge in tuition, plus more for living expenses. The White House didn’t specify proposed limits.
Source: https://www.wsj.com/articles/trump-a...ns-11552942437. (Sorry - its behind a paywall)
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Old 03-19-2019, 09:17 AM
 
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The endless rise in tuition and School expenses is part of the problem. However, having the Feds Cap the Borrowing limits will only drive students and parents to even higher cost private loans, not restrict the rise in tuition and fees.


Somehow the schools need to face a penalty by not adhering to some sort of limit. I know that when Michigan imposed limits on tuition hikes the state supported universities started rapid escalation of Housing Fees, and a portion of the housing fees were diverted to tuition and other non-housing costs.


Any solution will need to be multi-pronged to be effective.
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Old 03-19-2019, 10:32 AM
 
Location: Chicago
5,537 posts, read 8,495,446 times
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Quote:
Originally Posted by MI-Roger View Post


Somehow the schools need to face a penalty by not adhering to some sort of limit. I know that when Michigan imposed limits on tuition hikes the state supported universities started rapid escalation of Housing Fees, and a portion of the housing fees were diverted to tuition and other non-housing costs.

.
Thatís interesting... Several midwest state universities I visited with my son now have a 2 year requirement to live in the dormitories/pay meal plans. I guess thatís another way to squeeze out $ from students without tuition hikes.
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Old 03-19-2019, 10:46 AM
 
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Contrary to talking points, it is NOT loans that are driving the price. Loans are a response to the prices. I know, doesnt fit the narrative, but reality seldom does.
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Old 03-19-2019, 06:44 PM
 
3,676 posts, read 1,904,430 times
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Quote:
Originally Posted by tnff View Post
Contrary to talking points, it is NOT loans that are driving the price. Loans are a response to the prices. I know, doesnt fit the narrative, but reality seldom does.
What is driving the price?
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Old 03-20-2019, 07:28 AM
 
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A big driver has been cutbacks in state support for state institutions, shifting more of the cost on to the middle class students. Anyone who has done a FAFSA knows what little percent most middle class students get I. The form of loans. The amount of loan guarantees for are justa fraction of the total cost of attendance even at a lot of state schools.

Nor is the cost driven by so called luxury amenities. Maybe some schools. But most are no different than when we went. In fact many are the same dorms with maybe a cost of paint. The talking points just are not the reality for most who ate attending.

For STEM there are a lot of costs in labs and facilities to do cutting edge work. Specialized equipment, clean rooms, etc. And the cost of software. Some of those programs cost $100's of thousands per year to license. Libraries, same thing to subscribe to journals and databases.

They aren't taking "gender studies "
They are working to help pay for college.
Books are ridiculous in price.
They are in debt roughly the cost of a new car for their education.

Last edited by tnff; 03-20-2019 at 07:45 AM..
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Old 03-20-2019, 07:48 AM
 
282 posts, read 42,854 times
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Quote:
Originally Posted by RationalExpectations View Post
Support for caps reflects realization that student loan borrowing by graduate students and parents of undergrads allows schools to charge ever higher prices for tuition, fees, and room & board.



Source: https://www.wsj.com/articles/trump-a...ns-11552942437. (Sorry - its behind a paywall)

Way past due. The higher ed system has made a killing off of the loan system. They don't care how they get their money, and the ever-increasing loan backing amounts have continued to let them jack up their prices. They don't care if you go $1 million in debt. As long as that loan money covers the exorbitant tuition.

I bet this "cap" talk has the bloat in higher ed worried. Administrators might have to give up their 5-hour $200K "work" weeks.
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Old 03-20-2019, 03:30 PM
 
1,474 posts, read 896,780 times
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I wholeheartedly agree that loans are driving the tuition costs, and not the other way around.


Where I went to school, roughly half of the kids were on scholarship, and the other half paid $50k, which just happened to be roughly the cap for federal loans that year. If the cap dropped to $25k overnight, there's no way they would be able to keep their applicant pool up without reducing tuition, probably at the expense of offering fewer academic scholarships.
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Old 03-20-2019, 06:48 PM
 
6,877 posts, read 10,052,839 times
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Quote:
Originally Posted by tnff View Post
Contrary to talking points, it is NOT loans that are driving the price. Loans are a response to the prices. I know, doesnt fit the narrative, but reality seldom does.
I just posted a thread on how the growth in popularity of for-profit colleges is the main cause of the current student loan debt "crisis." In my opinion, public funds should only go to public schools, and they definitely should not go to for-profit schools. This would solve most of the problems. And, there's also the reduction in state subsidies.

The interesting thing is that for-profit colleges are less likely to offer degrees in the liberal arts. Other than psychology and criminal justice, the most commonly-offered programs at for-profit colleges are considered "applied." They offer a lot of programs in various business fields, IT and computer science, and education. At the two-year and certificate levels, they're offering vocations in healthcare and trades.

Dependent, undergraduate students cannot borrow much. The cap is already low. If they want to borrow more, they either need private loans or have their parents apply for a PLUS loan. The PLUS loan requires a credit check. Independent students have a higher cap, and these are usually older students. I suspect much of the debt is coming from them. Also, a lot of what's driving the increase in debt is the growing attendance of graduate school. This is probably the reasoning behind lowering the caps for parent and graduate loans.

Last edited by L210; 03-20-2019 at 07:05 PM..
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Old 03-21-2019, 06:59 PM
 
2,259 posts, read 3,512,828 times
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Quote:
Originally Posted by GoCUBS1 View Post
Thatís interesting... Several midwest state universities I visited with my son now have a 2 year requirement to live in the dormitories/pay meal plans. I guess thatís another way to squeeze out $ from students without tuition hikes.
Back in 2004 I was one of four finalists following a national search to fill the position of Director of Housing Facilities at a major mid-western state university. I was shocked and appalled when the interviewers, who all would have been part of my staff had I been the final selection, informed me of this pricing treachery (my opinion) imposed on Room & Board fees!
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