Riskier for the borrower who defaults, not the taxpayer. What a good little socialists. And no the crossed arms don't make you look smarter.
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Posted on 09/26/2025 2:41:55 PM PDT by SeekAndFind
It is sadly humorous to me, but not surprising, that Elizabeth Guevara, writing for Investopedia, can only seem to offer one solution for young people considering college, now that there is a cap on available federal student loans. From a new article via Yahoo Finance:
New Student Loan Limits May Force More Borrowers to Take Out Private Loans
The ‘One Big, Beautiful Bill’ will restrict the amount of federal student loans available to college students next year. Students may have to take out riskier private loans to cover the rest of their schooling.
The average medical graduate student will not be able to take out enough federal loans for the cost of their school and will likely have to take out tens of thousands of dollars in private loans.
Some families who take out Parent PLUS loans will have to use private loans, which typically have higher interest rates and will cost them almost $5,000 more in interest during repayment.
Guevara didn’t think that maybe the kids should go to a cheaper school, a junior college, a vocational school, not go to college at all, or, heaven forbid, that colleges should reduce their highly inflated costs?
Here is an abbreviated history of student loans:
Government subsidized student loans got put on steroids in 1965, to (supposedly) make college more affordable.
In 1965, the average annual cost of tuition and fees at a 4-year public university was around $350, while private colleges averaged $1,000–$1,200 annually.
As colleges used the largesse of the government to bloat their staff and rapidly raise prices, the government just kept throwing more money at them. They never sought to control costs.
In 2009, Democrats decided to “fix” the problem with student loans by guaranteeing them. They again pretended that this would increase affordability…
(Excerpt) Read more at americanthinker.com ...
By 2025, because of the government’s unlimited generosity, the tuition at a public university had soared over 33 times the amount it was in 1965, going from $350 per year to $11,610.
Private college tuition has escalated from $1,200 per year to an average of $43,505, or up 36 times. Average inflation for this sixty-year period would have caused prices to be around ten times what they were in 1965, but college costs have risen three times as fast.
Yet, the media and other Democrats decry the cuts in the amount students are allowed to borrow. It is no wonder the country is so broke when the government is so generous to special interests, and any cutbacks are met with hysterical opposition.
Anybody wants to talk about Healthcare and Housing??
Here we are about to enter WWIII and the government has nothing better to do than squabble over whether it will be funded into the next fiscal year.
In 1978-1080, my tuition was $265 a semester for junior college.
Adjusted for inflation, $285 in 1978 is equivalent to approximately $1,412.10 in 2025. That reflects a cumulative price increase of 395.47% over 47 years, with an average annual inflation rate of 3.46%.
There is no college in the USA, junior or otherwise that has that kind of tuition today!
Boy! Did I get bang-for-my-buck when I went to college!
Plus, I got to live in a house (with 9 other guys) where the wind whipped through the walls.
I went to a public medical school 1972-76 for $1600/year and NY paid half so my out of pocket was $3200, which I paid by summer work for the first two years (the last two years are 12 months).
Medical school now costs $360,000 - $500,000 for four years. The classes in the first two years are taught by graduate students and professors who are paid by grants, the second two years are taught by doctors who are paid by fees from patients and researchers who are paid by grants.
It should be free. Where all that borrowed tuition money goes to is a good question.
The bloated U.S. gov is the biggest employer...A good percentage of your neighbors are on the corrupt government payroll. Anything negatively affecting their jobs and or fat gold plated tax paid pensions are not welcome.
Just remember dimocrat magic math...a cut in the INCREASE of spending actually counts as a draconian cut in spending to them.
Baseline budgeting needs to be ended.
As long as Congress continues to use baseline budgeting, meaningful cuts will not be made.
Poor babies. Maybe they’ll have to work and provide for themselves while going to school. Like most of the rest of us.
My dorm room was $185 a semester and the food plan was around $600 (required to get if you stayed in the dorm). I think the books were around $50 (over priced even then).
It's happening all across the Western world, as social welfare models from various governments are coming to the end of their Ponzi scheme structures. Like old Ken Lay of Enron, the progressives are promising nothing's wrong and that "next time...."
Most of the Republican electeds are against cutting spending too. They just aren’t as loud about it as the Democrats are.
May also may them pick more fiscally productive choices.
To libsocs, govt can never decrease. Govt workers can never decrease. Govt funds can never decrease. Taxes can never decrease. Nothing about govt can ever go down/decrease.
“Here we are about to enter WWIII and the government has nothing better to do than squabble over whether it will be funded into the next fiscal year.”
You may come out of your cave, now.
That’s because RATs buy votes from the low IQ entitlement demographic. No free money = no votes. And RATs don’t care if America collapses. As long as they continue to have 20 or so relatives on the govt dole all doing the job of two people.
Riskier for the borrower who defaults, not the taxpayer. What a good little socialists. And no the crossed arms don't make you look smarter.
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