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It was. I graduated in ‘96 with about $30,000 in student loans. Today in my field salaries are not much higher than they were then in my field but new grads are now $200,000 in debt for the same degree. They keep expanding requirements too, used to be bachelors for OT now it’s masters, PT used to be masters now it’s doctorate which requires that much more debt. A new grad speech therapist told me grad school was $65,000 by itself.
Yeah graduate programs are getting much more expensive. That's why I went the PhD route. Full tuition remission and a stipend, I figured if I really decided I just wanted a masters I could drop out after year two and graduate with an MS without having to pay for it. I decided to finish though.
What is so incomprehensible about "If you borrow money, you will have to pay it back".
Also, three minutes on google will clue you in about the job salary value of any field of study. And lets not forget the endless articles and discussions online about student loans and the problems they cause.,
Three minutes on google will also clue you in that student loans aren't subject to the same bankruptcy protections as other consumer purchases so why is 20 grand in frivolous credit card debt protected but not education spending? Answer: a calculated re-write of the bankruptcy laws back in the early 2000's right before the Fed got into the business of underwriting student loans. Since higher education is still one of the biggest factors in ensuring economic mobility within the lower and middle classes, you now have the banks and the government holding it hostage while driving up prices to ensure it's virtually inaccessible to all but the financial elite.
But yeah, it's probably easier to just conclude that all college students are lazy gender studies majors who take out 300k in loans just for laughs, I get it.
Three minutes on google will also clue you in that student loans aren't subject to the same bankruptcy protections as other consumer purchases so why is 20 grand in frivolous credit card debt protected but not education spending? Answer: a calculated re-write of the bankruptcy laws back in the early 2000's right before the Fed got into the business of underwriting student loans. Since higher education is still one of the biggest factors in ensuring economic mobility within the lower and middle classes, you now have the banks and the government holding it hostage while driving up prices to ensure it's virtually inaccessible to all but the financial elite.
But yeah, it's probably easier to just conclude that all college students are lazy gender studies majors who take out 300k in loans just for laughs, I get it.
You got it exactly backwards. Banks are not driving the tuition prices upwards. Colleges and universities are. Banks are merely a vehicle the government uses to flood the education system with "free" money. Just like the housing market before the crash. Imagine if you are a university president, and every semester you increase tuition by 10% and demand just keeps going up! You increase it by 50% and there is still no shortage of applicants! All fueled by government-backed sub prime student loans. This is what is happening.
Tuition prices will not come down until the government stops underwriting student loans, and it will take this bubble to pop to change this government policy, just like it happened with housing. At the end of the day, the taxpayers will be on the hook to pay out all of these billions of dollars back to the banks, and people like you will be blaming the banks and "financial elites". If it was actually up to the banks and financial elites, the only people who would be getting 200k at 8% would be doctors, lawyers, IT professionals, and petroleum engineers. Just like the only people who could qualify for a mortgage are the people who actually have income to service the monthly payments. The banks don't have to do due diligence when there is a signature of Uncle Sam on the loan contract.
You got it exactly backwards. Banks are not driving the tuition prices upwards. Colleges and universities are. Banks are merely a vehicle the government uses to flood the education system with "free" money. Just like the housing market before the crash. Imagine if you are a university president, and every semester you increase tuition by 10% and demand just keeps going up! You increase it by 50% and there is still no shortage of applicants! All fueled by government-backed sub prime student loans. This is what is happening.
Tuition prices will not come down until the government stops underwriting student loans, and it will take this bubble to pop to change this government policy, just like it happened with housing. At the end of the day, the taxpayers will be on the hook to pay out all of these billions of dollars back to the banks, and people like you will be blaming the banks and "financial elites". If it was actually up to the banks and financial elites, the only people who would be getting 200k at 8% would be doctors, lawyers, IT professionals, and petroleum engineers. Just like the only people who could qualify for a mortgage are the people who actually have income to service the monthly payments. The banks don't have to do due diligence when there is a signature of Uncle Sam on the loan contract.
I'm not disagreeing with you, my point is that they currently exist in a symbiotic relationship made possible by tightening up bankruptcy laws in advance with, no doubt, the foresight that interest rates and tuition would skyrocket leading to more defaults. Meanwhile these subprime student loans are being bundled and sold with other securities same as with the mortgage crisis until eventually enough students default will on enough loans that the bottom falls out and this very predictable 'bubble' collapses. The banks currently have no disincentive not to loan to subprime borrowers, as you mentioned, it's all guaranteed. Same goes for the school, they get the tuition check and without federal tuition caps, are free to charge whatever they want within (and outside at this point) reason.
Meanwhile new college students are going to keep borrowing and fueling the machine, because at the end of the day the universities have cornered the market on higher education and if a college degree is the barrier to entry, then people will do what they have to now and figure out the consequences later.
At the end of the day, buying a house is a luxury and optional consumer commodity and an education is not, but we are treating it like it is, so will be interesting how this country fares on a global scale if this trend continues.
I don't see how this proposal is much different from loan protections everyone is afforded regarding mortgages, auto loans, credit cards and virtually every other type of lending agreement. Why the hubbub?
You got it exactly backwards. Banks are not driving the tuition prices upwards. Colleges and universities are. Banks are merely a vehicle the government uses to flood the education system with "free" money. Just like the housing market before the crash. Imagine if you are a university president, and every semester you increase tuition by 10% and demand just keeps going up! You increase it by 50% and there is still no shortage of applicants! All fueled by government-backed sub prime student loans. This is what is happening.
Tuition prices will not come down until the government stops underwriting student loans, and it will take this bubble to pop to change this government policy, just like it happened with housing. At the end of the day, the taxpayers will be on the hook to pay out all of these billions of dollars back to the banks, and people like you will be blaming the banks and "financial elites". If it was actually up to the banks and financial elites, the only people who would be getting 200k at 8% would be doctors, lawyers, IT professionals, and petroleum engineers. Just like the only people who could qualify for a mortgage are the people who actually have income to service the monthly payments. The banks don't have to do due diligence when there is a signature of Uncle Sam on the loan contract.
Tuition rates really started to rise when the government took over student loans 11 years ago. I started law school in the mid ‘00s and tuition at my law school has increased by almost 100%. I can’t see a reason for the 100% increase. The ranking is still where it has always been, so it doesn’t seem like the price is turning away applicants. Meanwhile, salaries have not increased significantly. The wage growth in the main market the law school serves has been pretty stagnant, although graduates go to many markets.
Tuition rates really started to rise when the government took over student loans 11 years ago. I started law school in the mid ‘00s and tuition at my law school has increased by almost 100%. I can’t see a reason for the 100% increase. The ranking is still where it has always been, so it doesn’t seem like the price is turning away applicants. Meanwhile, salaries have not increased significantly. The wage growth in the main market the law school serves has been pretty stagnant, although graduates go to many markets.
Tuition also rose with the rise of more administration positions added to it. You also have schools that upgrade their campus so it has the cool factor.
I also feel the University Core requirement is redundant. 2 years being spent on learning about topics that have been hammered to death in middle, junior high and high school.
A revised university core should be created that focuses on Business Communication (Writing, public speaking, MS Office, etc), Business Math, and Personal Finance. It should go for half a year. Then a student has 3.5 years to master their major or maybe do the half year in an internship.
I finally paid off my student loans from a failed three years of pre-med and med school courses some 10-12 years ago. I didn't get any assistance or special favors. I just worked hard to get out of debt and move on with my life.
If my taxes are now going to be used to pay off other people's loans, simply because they're irresponsible slackers, I'll be quite upset. Spare me the pious lectures about how hard it is to pay for a college education! You sign on the dotted line and you take responsibility for your own actions, or else you just go get a job and skip the useless degree in gender studies or whatever.
I finally paid off my student loans from a failed three years of pre-med and med school courses some 10-12 years ago. I didn't get any assistance or special favors. I just worked hard to get out of debt and move on with my life.
If my taxes are now going to be used to pay off other people's loans, simply because they're irresponsible slackers, I'll be quite upset. Spare me the pious lectures about how hard it is to pay for a college education! You sign on the dotted line and you take responsibility for your own actions, or else you just go get a job and skip the useless degree in gender studies or whatever.
There is nothing in this proposal that pays off anyone’s student loans. The bill is to require the same disclosures and borrower rights as we already have for other consumer loans, mortgages and credit. It is simply extending those same disclosure rules and protections to student loans.
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