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.
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 😂
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.
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
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.
That’s Econ 101. The more dollars chasing a product, the more the price goes up.
“As even more federal dollars have flowed into higher education in grants and (largely forgivable) loans.”
The forgivable part bothers me. A break for Teachers, but not for someone taking coursework in STEM. Loans for a Dr. forgiven if he practices medicine in certain parts of the country. Various exceptions for careers deemed preferred or persons given preferential treatment based on skin color. Student loans are otherwise not forgiven, not even in bankruptcy (you can escape a degree in teaching kindergartners how to color, but not a degree in electrical engineering). To be clear, I’m not asking for loans to be forgiven, but rather to remove the absurdities of ‘forgiveness’ justification.
However, if we do consider ‘forgiving’ any student loans, one criteria might be how much the person has contributed in taxes, and how little they have been a drain on taxpayer dollars. It would more aligned with a ROI calculation.
Duh. The Captain Obvious headline of the day.
Duh...
It’s called creating an artificial floor.
If the colleges all know, that every person walking in the door is guaranteed $X in student loans per year at a minimum, then there is absolutely no incentive for any college to charge less than $X per year, EVER.
Same thing happens with section 8... If Section 8 voucher is worth $Y dollars for a 2 bedroom apartment, then there is no reason any landlord would charge less than $Y dollars for a 2 bedroom apartment. Even if they have no intention of accepting section 8.. they know if they had to they would get at least that much for the unit, so you have created an artificial floor.
How else can they afford to pay their bb players 3 million a year,like byu,unless they make the student nurses and medical students pay more.
Institutions need skin in the game toward the success of their students.