Posted on 12/07/2014 8:13:00 PM PST by SeekAndFind
Whhether you call it a bubble or a bomb, the rapid increase in student debt has become a hot topic in the news, with media stories inevitably focusing on those who have accumulated $100,000 or more in college loans. Straight off the bat, it should be said that six-figure debt isnt typical. Most undergraduate students graduate with an affordable amount of debt, with less than 10% of college graduates having total student-loan debt exceeding their annual income, concludes Mark Kantrowitz, publisher of FinAid.org, which provides resources on paying for college. Average debt at graduation in 2011 was about $27,000, says Kantrowitzabout the cost of a new car.
His analysis adds welcome perspective to the issue. But theres no doubt that college debt is rising, and it appears to be part of a vicious cycle: Studies indicate that the very loans that are supposed to help students pay for college also contribute to driving up costs, and that prompts students to borrow even more. While policy wonks debate solutions to this Catch-22, students and families are faced with a practical problem: How do you pay for collegeand make the most of student loans, if necessarywithout getting in over your head?
Its a subject Kiplingers has covered extensively. In our October issue, senior editor Jane Bennett Clark, who heads up our college coverage, warned parents not to assume that stretching for a prestigious school will pay off down the road. (See 7 Pitfalls to Avoid When Paying for College.) Choosing the right major and making the most of every opportunity have more impact on future earnings than a schools prestige, says Jane.
(Excerpt) Read more at kiplinger.com ...
Choosing a prestigious school may be very important indeed. A liberal needs the cachet of a prestigious diploma to cover the smell of the crap they pour into his/her/its head at the prestigious school. If he/she/it chose a sophisticated, progressive major (gay or womyns studies, etc) the diploma may be a ticket to a successful career posing in pajamas for pictures, drinking chocolate and discussing the purchase of health care insurance.
There is no good reason that all colleges could not do what tiny Hillsdale College does: Get off the government guaranteed student loan grid completely and finance their students through their own endowments and partner lenders.
And when managed medical care began in the 80s, the patient cost of medicine increased a bunch.
Seems like when the feds decide to "reduce costs" we need to run in the opposite direction.
Gubmint involvement is like a toothache. And at some point, we are going to have to yank it out.
Zero loan debt.
I believe that college benefits are even better now for military people (as we are at war now) but no doubt the liberals aren't considering the military as an option.
So let them deal with their six figure college loans.
Essentially the debts reflect the cost of being economically non productive for early adult life. No longer supported by parents, traditional welfare much less themselves, government has decided to commit capital ( taxes from others and borrowed money) into their support. Often the resources, like much government spending, are squandered.
Figure the cost of the teacher x number of students x tuition cost. The colleges are raking it in!
Some college class
http://voices.dyc.edu/students/files/2013/04/bigClass.jpg
Another Government supported debt-bubble, stoked by cheap money from the Fed.
And YOU, the U.S. Taxpayer will be on the hook for all these Mary Jane Rottencrotches going off to college for their degrees in Trangender Studies.
Don’t forget to pay your taxes. Owebama is sure to wave his magic scepter and executively declare all student debt is forgiven.
At some point, a state legislature somewhere....is going to task an audit agency to look at their public schools and where money is being consumed. They will come back and report that forty-odd percent of tuition costs is wasted and questions will start to arise. There’s not doubt that each single state-run university (and private universities as well)...have lost the ability to control themselves or their budgets.
They left off the part where colleges keep raising tuition as long as government keeps giving loans.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.