Posted on 03/27/2025 10:06:51 AM PDT by SeekAndFind
Last week we shared some charts on the utter failure and folly of federal intervention in education for K-12.
An even bigger failure has been the $1.5 trillion student loan boondoggle. As even more federal dollars have flowed into higher education in grants and (largely forgivable) loans. This is the result:
We got a lot of praise and criticism from readers for our call to impose an excise tax on university tax-free endowments above $1 billion. But what is clear is that almost none of these treasure chests of wealth are being used to make college more affordable. Shameful.
The chart shows us that after 2020, Prices for Tuition, Room and Board in Colleges DROPPED!
What accounts for that??
Where’s the mystery? You subsidize something, you get more of it. Hence the utter failure of the 60-year “War on Poverty” and the welfare state.
Student Loans are a huge transfer of wealth from young Americans to University administrators and professors, who usually earn well into six figures. To pay those admins and professors, the universities raise their tuition.
A well intentioned program has gone completely off the rails and young Americans are the victims.
The program was never intended to put young Americans hopelessly in debt so that Univ. admins and profs could drive $100,000 cars.
Covid would be my guess.
Where’s the mystery? You subsidize something, you get more of it. Hence the utter failure of the 60-year “War on Poverty” and the welfare state.
~~~
It’s also the reason healthcare costs are so absurd.
If they had never started to socialize healthcare so many decades ago, costs would have stayed manageable for lower and middle income people to afford purely out of simple economic forces.
Cost inflation. University will charge what they know will be paid. So when kids who have no clue that they are indebting themselves forever, are able to borrow vast amounts of money they are able to pay for it like lemmings.
“The More the Feds Subsidize Student Loans, the More Colleges Raise Tuition”
Yes.
Been like that for decades.
Funny how that works.
lol subsidize a behavior you get more of it, and the bastions of liberalism use the most basic tenet of capitalism supply and demand 😂
What DoubleNickle said. COVID. Distance learning. More students living at home and taking classes over the Internet. Far fewer living on-campus, if indeed the dorms were even open.
Headlines that make you say “duh”.
My understanding is that Federal college loan pay a percentage of the “retail” loan price. Thus colleges raise fees to maximize revenue and maybe discount or forgive the students part. If not correct please advise.
Does the same theory apply to food stamps?
That’s how government works.
They’ve been subsidizing the education & health sectors very heavily since the mid to late 1960’s.
Now, look at the bloat and misalignment of labor & capital.
It also took place during the de-industrialization of America through foreign producer dependency, which led to the creation of a wokish economic system.
Its dimcrap taxpayer and vote buying scam
“ It’s also the reason healthcare costs are so absurd.”
Healthcare as we know it changed dramatically as a a result of wage and price controls instituted by the morons in Congress.
When they fixed wages, many companies added health insurance in order to attract and retain employees. This decoupled the doctor from the patient. Once that happened patients cared less about and were even unaware of what healthcare costs. As a result, people would use more healthcare than before because they were spending other people’s money. Add in laws that require hospitals to take care of anyone, regardless of ability to pay, along with illegal immigration which increased the number of non-payers and hospitals are forced to charge more to those who can pay to cover what’s given to people who can’t pay.
Per usual, supposedly well meaning but functionally moronic politicians broke things.
No kidding. Same with every “demand.”
But I was nowhere near aware of the preposterous amounts of $$ given to these schools. They really have balls to charge a dime for tuition.
Ya. It’s money laundering. Uses the students as middlemen. Obama people in charge of schools raking in dough like a Ukrainian dictator on coke
People bitch about kids being irresponsible. That s so ignorant and bigoted. Our young people were getting raked. Trump to fix.
Ever notice how every election cycle, democrats campaign on “more money for education”?
It’s been their cash cow for over half a century.
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