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$100K? Hell, supposed class-warrior Elizabeth Warren was paid $350K to teach one class at Harvard.
Isn't this just as much a result or outcome of our American styled version of Capitalism? I believe she also obtained her education with government assistance, or, at the least, with government encouragement.
Isn't this just as much a result or outcome of our American styled version of Capitalism?
No. It's a way to strip wealth from those who can afford the cost of attendance at Harvard, or from the middle class/taxpayers when student loans are used to finance a Harvard education.
No. It's a way to strip wealth from those who can afford the cost of attendance at Harvard, or from the middle class/taxpayers when student loans are used to finance a Harvard education.
Isn't this just as much a result or outcome of our American styled version of Capitalism? the new & global religion? the American Dreamism one? Are you also claiming all should charge less than the 'market will bear'? Not sure where you're coming from, I'm interested, please clarify.
Btw, who can afford the cost of attendance at Harvard?
Quote:
Families with students on scholarship pay an average of $11,500 annually toward the cost of a Harvard education. More than 65 percent of Harvard College students receive scholarship aid, and the average grant this year is $46,000.
Isn't this just as much a result or outcome of our American styled version of Capitalism?
No. It's the outcome of the federal government pumping taxpayer $$$ into our country's higher ed system in the form of student loans. That has permitted tuition, etc., to skyrocket, and has increased faculty compensation to far beyond reasonable levels.
It's the housing bubble, burst, and crisis, version 2.0
We're in the middle of a higher ed bubble. It will eventually burst (as student loans increasingly default), and precipitate another financial crisis. Investors buy student loan securities just like they bought MBS.
No. It's the outcome of the federal government pumping taxpayer $$$ into our country's higher ed system in the form of student loans.
Is this the only factor?
Quote:
...But a turning point arrived around 1970, Thelin says. With double-digit inflation, an oil embargo and a sputtering economy, a perfect storm began to build. College tuition and fees climbed as much or more than the inflation rate. Private loans, heavily subsidized by the federal government, gradually replaced federal grants as the main source of money for both poor and middle-class college students.
As family income fell, borrowing to pay for college took off,while public investment in higher education dropped. Sandy Baum of the Urban Institute says that drop has been the single biggest reason for the increase in college costs.
"So it's not that colleges are spending more money to educate students," Baum says. "It's that they have to get that money from someplace to replace their lost state funding — and that's from tuition and fees from students and families."
That has permitted tuition, etc., to skyrocket, and has increased faculty compensation to far beyond reasonable levels.
It's the housing bubble, burst, and crisis, version 2.0
We're in the middle of a higher ed bubble. It will eventually burst (as student loans increasingly default), and precipitate another financial crisis. Investors buy student loan securities just like they bought MBS.
Every market the federal government interferes in (definitely NOT capitalism) ends up being a disaster. Housing, Higher Ed, etc., etc.
Personally, I don't think it's such a simple problem, there are interconnected & underlying or root causes, here's one explanation:
Quote:
The higher education bubble is a hypothesis that there is a speculative boom and bust phenomenon in the field of higher education, particularly in the United States, and that there is the risk of an economic bubble in higher education that could have repercussions in the broader economy. Enrollment at more than 40 percent of private colleges and universities declined during 2012, forcing the institutions to offer steep tuition discounts to fill seats.[1] President Obama nearly doubled the federal Pell Grant Program, from $19 billion in 2009 to $36 billion for 2013.[2]
According to the theory, while college tuition payments are rising, the rate of return of a college degree is decreasing,[3] and the soundness of the student loan industry may be threatened by increasing default rates.[4] College students who fail to find employment at the level needed to pay back their loans in a reasonable amount of time have been compared to the debtors under sub-prime mortgages whose homes are worth less than what is owed to the bank.[5]
People seem to love to blame student loans for the rising costs of college, but states have been decreasing funding for higher education for decades, and grants have been eroded which is the larger reason tuition is so much higher now. Today, much, much more of the cost is pushed onto the students in the form of tuition paid through loans. Past students received a highly tax subsided education, that;s why working one's way through college was doable. Current students without wealthy parents have little choice, but to take on loans to pay the increased costs.
"As family income fell, borrowing to pay for college took off, while public investment in higher education dropped. Sandy Baum of the Urban Institute says that drop has been the single biggest reason for the increase in college costs.
"So it's not that colleges are spending more money to educate students," Baum says. "It's that they have to get that money from someplace to replace their lost state funding — and that's from tuition and fees from students and families.""
People seem to love to blame student loans for the rising costs of college, but states have been decreasing funding for higher education for decades, and grants have been eroded which is the larger reason tuition is so much higher now. Today, much, much more of the cost is pushed onto the students in the form of tuition paid through loans. Past students received a highly tax subsided education, that;s why working one's way through college was doable. Current students without wealthy parents have little choice, but to take on loans to pay the increased costs.
"As family income fell, borrowing to pay for college took off, while public investment in higher education dropped. Sandy Baum of the Urban Institute says that drop has been the single biggest reason for the increase in college costs.
"So it's not that colleges are spending more money to educate students," Baum says. "It's that they have to get that money from someplace to replace their lost state funding — and that's from tuition and fees from students and families.""
I agree with you detshen, & I ask you (& others) what is the common denominator in these equations?
From previously quoted article:
Quote:
College students who fail to find employment at the level needed to pay back their loans in a reasonable amount of time have been compared to the debtors under sub-prime mortgages whose homes are worth less than what is owed to the bank.
Comparing the 'higher education bubble' to the recent global economic imbroglio? The common denominator is ...?
I'm guessing some will say US government. Although why was the most recent economic crisis of global & epic proportions?
Granted, it's not a simple equation. Most likely requires an equal amount of courage & critical thinking skills to competently address.
Trillion dollar student loan debt is the result of one set of leftists, college professors and administrators, using another set of leftists, big spenders in the federal government, to turn a third set of leftists, college students, into debt slaves.
The net net of it all is the debt slaves will become conservatives when they realize how ripped off they are.
People seem to love to blame student loans for the rising costs of college, but states have been decreasing funding for higher education for decades, and grants have been eroded which is the larger reason tuition is so much higher now. Today, much, much more of the cost is pushed onto the students in the form of tuition paid through loans.
Exactly. State funding has a limit. Grant funding has a limit. Student loans are the only source of funding that so far doesn't have a limit. By transferring much of the cost of higher ed to student loans, higher ed has tapped into an unlimited source of funding which has resulted in skyrocketing tuition, etc., costs and faculty compensation that is far beyond reasonable levels (cough, Elizabeth Warren's $350K salary for teaching just one class).
Remember the link I posted earlier, just like MBS, student loan debt is securitized and sold to investors.
The student loan bubble will burst as defaults escalate, creating yet another financial crisis.
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Elizabeth Warren was paid $350K to teach one class at Harvard.
