What a hustle this has become. This is right up there with the "Property tax" con job.
Rent of Primary Residence in U.S. City Average
https://fred.stlouisfed.org/series/CUUR0000SEHA
It’s up about five-fold 1980 to the present time.
Rents stem from a mixture of building cost and rental & maintenance people cost.
Banks were smeared as “predatory lenders” during the housing crisis. I said “what about ‘predatory educators’”?
Perhaps college students should have to pay $10,000 tuition from their own funds at least seven months previously before becoming eligible for federal student loans.
Prospective college students would then typically work a year before going off to college.
They could take remedial courses online during their off-work hours. Their SAT scores would become higher, and their chance of graduating would increase.
My grandson is in his final year. His student loans started at 7.35% and has gone up every year with no explanation except some factors have changed. This year it was 18.50%. I loaned him the money for his last two semesters.
“The average student loan debt for a master’s degree is approximately $64,950, with total debt including undergraduate loans reaching around $83,651.”
https://duckduckgo.com/?q=average+student+loan+debt+for+masters+degree&ia=web
Maybe federal loans should only be available for medical school and students without a bachelor’s degree.
p
Pretty sure these student loan interest rates are not simple fixed rate/term loans. The interest compounds daily? In other words, the students pay and pay and pay and the principle never goes down. We found that out on a Parent Plus loan. Was paying more than required but principle owed never moved.
Circa 1966 my university had about 7000 students. The administration was one wing of the chemistry building. That was 1/4 of the chemistry building consisting of about 20 offices. Today the administration building is a 3 story building of about 3 times the size of the whole chemistry building of 1966 but serving but about 8500 students.
I see a problem with this.
I thought usury was illegal.
The student loan system turns young people into indentured servants. This is not a good thing. It also creates a huge Leftist education bureaucracy which is also not a good thing.
Make the loan system guaranteed by the schools. get the fed out of it. Defaults then are paid for by the schools themselves. Curriculum will change in weeks. No more doctorates in “Bikini inspection”