Why higher education costs what it does. Part 1.

Flopping Aces ^ | 06-30-14 | DrJohn

[Starman417]

It's a crisis. Costs are skyrocketing for this faster than anything else. Something has to be done.

Health care?

No. Education.

Educational costs are rising faster than a Delta weather rocket.

The ballooning costs of higher education dwarfs the increased costs of health care:

We're being drained for educational expenditures- what do we get for it? Less and less.

And yet, somehow the United States continues to lag the world in education. This is a lousy return on investment. Let's have a look as to why the costs of education are exploding.

1. Fauxchohontas

Schools pay educators to teach one course while running for political office.

The fun began when Democratic challenger Elizabeth Warren, a law professor at Harvard, attacked Mr. Brown for voting against the umpteenth Senate bill to expand student-loan subsidies. According to the New York Times, Mr. Brown responded that "she makes $350,000 to teach one course" and received a no-interest loan from Harvard. This, he added, is "one of the driving forces behind the high costs of education."

Rising federal subsidies have allowed colleges to raise their prices, pocketing the increased aid that is allegedly intended to help students. According to the College Board, average tuition and fees in the last decade at private schools like Harvard surged a full 2.6% per year faster than the general rate of inflation. Price hikes at public universities have been worse—rising almost 6% per year faster than the consumer price index.

This is a politician worth nearly $15 million and who got a twenty year interest free loan.

[MeganC]

Education is expensive because student loans are exempt from bankrptcy proceedings. Thus the banks are incentivised to encourage higher education costs so the banks can make more money from interest charges on student loans.

Beats writing risky mortgages in bad neighborhoods.

[winner3000]

Education is expensive because it’s publicly financed (all the loans and grants from the government and the loans are guaranteed by the government). Could you imagine if private sector banks gave the loans and that they were not guaranteed? Banks who cares about collecting on their loans would actually ask the students what courses they are planning to take with the lent money. Do you think that they would approve money going for let’s say anything that ends with “studies”? (women’s studies, religious studies, race-baiting studies...)