The answer to our economic welfare is always the FREE MARKET ECONOMY without government interference.
The Free Market creates WEALTH (Adam Smith, "The Wealth of Nations").
Government and it's coercive regulations create POVERTY.
Posted on 10/21/2022 12:50:09 PM PDT by karpov
In August, the Biden administration, utilizing the HEROES Act of 2003, canceled $10,000 of student-loan debt for most students and $20,000 for those who previously received federal Pell Grants. Not only was this policy deeply regressive, but, more importantly, it worsens the bad incentives of higher-education financing that are at the root of this policy dilemma.
Since 1980, tuition prices have increased 250 percent, adjusted for inflation. At the same time, federal and state aid funding has grown more than 50-fold, from less than $3 billion in 1970 to almost $150 billion today (in current dollars). This is no coincidence.
Today 87 percent of undergraduates working towards four-year degrees receive some form of federal aid. However, the literature on the relationship between government aid and tuition prices reveals that, far from improving accessibility, government aid has made college less affordable for most students.
That’s because higher-education institutions typically respond to increased government loan support by 1) reducing institutional support and 2) raising their tuition prices. In fact, for each additional dollar of federal aid that students receive, they typically lose between $0.69 and $1.20 in institutional aid, depending on the type of aid and institution.
Between 2005 and 2009, colleges that were eligible to participate in federal aid programs raised tuition prices by 78 percent more than colleges that were ineligible. Increased federal student aid has been found to be responsible for the entire increase in tuition prices during the period 1987 to 2010.
(Excerpt) Read more at jamesgmartin.center ...
I think all student loans should be forgiven and the funding taken from the endowments of the universities, which are nothing more than hedge funds with parasitic schools attached.
The answer to our economic welfare is always the FREE MARKET ECONOMY without government interference.
The Free Market creates WEALTH (Adam Smith, "The Wealth of Nations").
Government and it's coercive regulations create POVERTY.
You could also make colleges co-sign loans for students.
few would co-sign for majors with few job opportunities.
Usually these are soft science majors.
Not a bad deal.
Yes and the elite universities are hastening their own demise with woke entrance requirements and grade inflation.
In 50 years, I doubt an Ivy League degree will be viewed as superior to one from midwestern state U.
Warren the Wizard offers a deal to students in his youtube vid. I’ll pay you now for permanent piece of yur arse in the future.
A very bad idea indeed.
Most of what is learned in a 4 year college degree can be learned onlne for pennies, in half the time.
“Good Will Hunting” portends just this, as a compelling jest in the movie.
Most folks are paying for the extended adolescence of it all (on parents Insurance til 26?), or for the important social connections (many gals go to Univ to get a “Mrs” degreee, at their peak of physical attractiveness and surrounded by the best pool of eligible guys they will ever come into contact with), or business connnections (lot sof Start Ups percolate up and out of Dorm Rooms) made through selective admissions and the high costs of status schools.
Like wearing a tie, Univ has been sold “because they have to”. Talented folks do what they want. (Jobs and his signature Mock Turtle. Musk, Gates & Zuckerberg all dropped out)
If employers would dump the rediculous Degree requirements for most jobs, it would all begin to collapse.
Lots are already doing it.
The free market is the answer to education. Unfortunately, most people do not understand that concept.
They refuse to acknowledge that college tuition increases when the government subsidizes it.
The cost of education is high at every level (from elementary school through college) because the government funds it.
YES - Loans in the real world are secured with collateral. STEM degrees at least have some chance of adding value - {protected-class} Studies degrees not so much
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