SEVERAL STATES SUSPEND PREPAID TUITION PLANS

The Atlanta Journal-Contitution ^ | 18 October 2003 | STEVE GIEGERICH

[MeneMeneTekelUpharsin]

The Texas situation was posted back in July and not a single individual on here replied...this is indicative of things to come. The reason many here are not interested is because they're not directly participating. What many don't see is that tuition in the future at public AND private institutions is going to be VERY expensive.

Without an education, the vast majority of individuals (not in possession of exceptional determination) are not going to be able to get decent jobs or somehow make a decent living. The entire standard of living in this nation is going to deteriorate and we will have a small enclave of very well-educated individuals who have it all--just like Latin America. And, those individuals will have the funds to educate their children, thus ensuring a dynastic control of wealth.

[eddie willers]

Part of the problem is that many states (for sure Georgia) have created FALSE demand for college with rewards from programs such as the Hope Scholarship where ALL students with a "B" average gets their tuition funded.

This has led not only to grade inflation (nobody wants to be the one to scuttle an "Honor" student's "future") but dramatically increased applications.

And what happens when "Demand" exceeds Supply?
Prices go up.

Let the number of students fall to those truly wanting (and deserving) furthering their education and it will then be priced at its true worth.

[Asclepius]

And, those individuals will have the funds to educate their children, thus ensuring a dynastic control of wealth.

Um, no. If this were true most of our nouveau riche would be ivy league alums: they are not. Read C. Wright Mills' (in)famous book, _The Power Elite_. Education, accidents of birth etc. are unreliable predictors of who gets what and how much.

The reason higher education costs are increasing faster than inflation is the same reason health care costs are spiraling: consumers no longer pay for it. Everyone gets subsidized: grants, subidized loans etc., etc. So institutions are insulated from market pressures to adapt or reform or control their costs.

When even government can no longer adequately subsidize higher education--which is increasingly the case--our brothers and sisters in academia will realize that they have priced themselves out of the market and begin to reform. But not before. Right now they are too addicted to all that lovely OPM (other people's money).

[KarlInOhio]

One thing I expect to happen is the increase in private, teaching only schools. No ivy covered walls, no football teams, no research to distract the teachers from teaching, no publish or perish pressure.

I don't know if they will be able to extend past the view of being mere "tech schools" instead of "universities", but if neither state nor private universities are able to provide an education at an affordable price, someone will step in to fill the gap.

[rawbob]

Every now and then I get lucky. I've been fortunate enough to have five grandchildren in the past three years (and that's all getting it appears). I bought each of them a paid-up Texas Guaranteed Tuition plan; the last two (twins) about two months before the state pulled the plug.

I've received assurances from the State Comptroller that preexisting paid-up plans will be honored. As I figure it, based on proposed tuition and fees at UT/Austin next fall, my $18,000 per 3-year old grandkid investment is now worth $35,000. Not a bad return!

[CIB-173RDABN]

The reason higher education costs are increasing faster than inflation is the same reason health care costs are spiraling: consumers no longer pay for it. Everyone gets subsidized: grants, subidized loans etc., etc. So institutions are insulated from market pressures to adapt or reform or control their costs.

---

BINGO! We have a winner.

[hopespringseternal]

I've received assurances from the State Comptroller that preexisting paid-up plans will be honored.

The reason we went the investment route rather than the prepaid route was that I simply have no faith in the politicians to keep their word.

College administrators view the public as witless proles who have no choice but to buy their services. Personally, I am coming to the conclusion that a good vocational business degree and starting a small business provides a much better chance for long term success.

[IncPen]

Ping to see where your higher taxes will be coming from.

[CaptainK]

Thank you for the first explanation on the subject that makes sense.
My only other question would be why do doctors and hospitals get pummeled for the rising costs while professors and college institutions seem to skate?

[netmilsmom]

Are there any states left that do have this program???

[Who dat?]

It’s interesting to me that collage has shifted from something that a few people went to (and often at their own expense – or due to scholarship or G.I. Bill), to something that the parents are *expected* to pay for/towards decades in advance.

[angry elephant]

College administrators view the public as witless proles who have no choice but to buy their services. Personally, I am coming to the conclusion that a good vocational business degree and starting a small business provides a much better chance for long term success.

I agree with you on that. I got a four-year Englsh degree and then a vocational business degree and started my own small business years ago. It has been a lot of work, but has rewarded me handsomely. The professionals who work through my company all do very well with just their vocational training and no college education. On the other hand, when we need a new secretary, we are flooded with resumes from people with four-year sociology, psychology and English degrees. I think the high-school counselors need to direct more students to vocational training, even if they are A students as I was.

[patton]

Well said.

[ChemistCat]

Want to adopt me and make it 8?

:-D

[deport]

What many don't see is that tuition in the future at public AND private institutions is going to be VERY expensive.

---

So what are you advocating?..... Public subsidy or what?

[Republican Wildcat]

Meanwhile Jonathan Miller is still touting this as one of his crowned accomplishments in his race for re-election as Treasurer here in Kentucky. Of course, he probably doesn't even know what is going on--he apparently hasn't shown up for any of his board meetings in 18 months.

[PeterPrinciple]

On the other hand, when we need a new secretary, we are flooded with resumes from people with four-year sociology, psychology and English degrees.

What, no womens studies applicants? Foundations must still have money.

[yankeedame]

Re: your nom de plume, you wouldn't by any chance be a medical doctor would you?

[yankeedame]

Amen!! Having seem my share of life, I am everyday more and more convinced that the world is run by "C" students.
(Folks that got c's in high school)

[supercat]

Without an education, the vast majority of individuals (not in possession of exceptional determination) are not going to be able to get decent jobs or somehow make a decent living.

Of course, another problem is that many people have to go to college to get the education they should have gotten in high school.