Get the federal government out of almost any area of commerce and prices will fall.
Posted on 06/16/2017 9:29:27 AM PDT by Academiadotorg
If you are in a hole, don’t ask Bernie Sanders or Andrew Cuomo for help. They'll keep digging.
"College tuition alone has shot up by more than 500 percent since 1985—more than health care, gasoline, and food prices," Jimmy Sengenberger, president and CEO of the Millennnial Policy Center in Denver, wrote in The Weekly Standard last month. "Student loan debt now totals more than $1.4 trillion and surpasses all other forms of consumer debt."
"The College Board reports that tuition and fees for the 2016-2017 school year averaged $9,650 for in-state residents and $24,930 for out-of-state residents attending public four-year institutions, and $33,480 at private four-year colleges--plus nearly $11,000 in room and board. The average 2016 undergraduate left school $37,172 in arrears."
Nevertheless, progressives characteristically ignore the fact that every previous attempt to solve the problem via federal subsidies has failed abjectly. "The concept of the feds stepping in to help make college more affordable for the average American is nothing new, but research shows that this very intervention is one of the driving forces behind the student debt mess," Sengenberger writes. "In a July 2015 report, the Federal Reserve Bank of New York observed a direct correlation between student borrowing and tuition levels, noting that 'higher tuition costs raise loan demand, but loan supply . . . [relaxes] students' funding constraints.'"
"The Fed spoke of a 'pass-through effect on tuition,' whereby for every dollar received in subsidized federal loans, tuition rises 65 cents. They report similar findings for Pell Grants (55 cents) and unsubsidized loans (30 cents). As the Fed study indicates, student debt isn't rising simply because college is too expensive. Rather, school is too expensive because of rising student loans and grants."
Malcolm A. Kline is the Executive Director of Accuracy in Academia. If you would like to comment on this article, e-mail mal.kline@academia.org.
That would be a good bumper sticker (on an old car):
I CAN’T AFFORD FREE COLLEGE
Bernie, sell your houses so we can go to college free.
Making it easy to get college loans takes market pressure off of tuition. Colleges can charge what they want, and the sky is the limit.
If you make it “free”, as in, the government pays for it, it simply gives colleges a direct pipeline to an infinite flow of money. As well as putting government in a position to exercise direct control. Its the worst of all worlds.
Sign your kid up for the Navy and give him a set of Harvard Classics. In combination its the best education in the world.
Full disclosure: our son did two hitches in the Navy so I tend to agree.
The universities are the “Industrial Base” of the Democrat tribe.
Of course they are going to shovel money to them.
He's talking with a girl who is coming on pretty strong he and says "I can't afford you."
She's outraged and says, "I'm not a hooker!"
"What I meant was: the cheapest girls are the ones you hae to pay for."
"I'M NOT A HOOKER!"
"Well, a hooker would get the joke."
They forget that there MUST be some kind of “friction” in place to limit the demand. As a part-time prof, I found that fully 1/4 of all students simply won’t do the work; how do you keep out those who are not likely to complete, and how do you (I hate to say “punish”) handle those who drop out? There is limited supply of money, classrooms, professors, etc; there must be some factor discouraging those likely to waste the opportunity, while facilitating those who actually would benefit.
Of course, the real solution is get gov’t completely out of college funding (to eliminate the “infinite funding for everyone” distortion), and let market forces drive down prices and charities facilitate the capable needy.
and I do but because it’s free association Friday, I am reminded of a joke Dean Martin told in his Vegas act: “I went to see Buddy Hackett the other night. He was so dirty. My hooker got up and left.”
Get the federal government out of almost any area of commerce and prices will fall.
Higher education has turned into a giant scam. And the government is in on it.
The ACA (Obamacare) has a few sections on college loans. Yep the health care bill includes college loans!
The dems complaining about tuition costs and loan rates are the ones who put these provisions in.
Let’s see, how often does it happen that FedGov must rush emergency legislation to mitigate an emergency they caused? LOL
There are far too many people going to college as it is. Just look at attrition rates as absolute proof of my statement.
Here’s my suggestion:
Require a resume to be part of the application process. If the applicant can show that they have a steady, stable, useful work history that is showing a consistent work history and ethic, it will prove that the student will not be wasting the university’s time and resources.
Young ladies who want to find a husband can attend finishing school and have parents arrange a match for them while those who haven’t figured themselves out can go around the world or work while discovering who they are. There’ll be less disruptions and less problems and less troublemakers.
there is?!
Here’s my suggestion:
Require a resume to be part of the application process. If the applicant can show that they have a steady, stable, useful work history that is showing a consistent work history and ethic, it will prove that the student will not be wasting the university’s time and resources.
Young ladies who want to find a husband can attend finishing school and have parents arrange a match for them while those who haven’t figured themselves out can go around the world or work while discovering who they are. There’ll be less disruptions and less problems and less troublemakers.
“Get the federal government out of the college loan business”
Certainly federal loan caps are in order, for the individual student, probably no more than the average amount paid up front per student at the institution.
A student might be able to get a $20,000 loan to go to Harvard for a year, but only say a $4,000 loan to go to a state or for-profit college for a year.
Alternately, I think perhaps the college should be the one borrowing and then the IRS takes a college/student agreed percentage per year (up to 4, up to 3% per year, for 10 years) of the college graduates’ incomes above the hourly minimum wage*2,000 to repay the college’s loans. Sort of like the English system, but with the college taking out the loan.
http://thehill.com/opinion/columnists/dick-morris/302247-loans-subsidize-obamacare
Subtitle C Sect 5201 of 111-148 Patient Protection and Affordable Care Act (ACA)deals directly with student loans for health care professionals, and several other sections briefly mention student loans.
The related PL111-152, the Health Care and Education Reconciliation Act that was passed along with the ACA, Part II, Student Loan Reform, has these sections:
Sec. 2201. Termination of Federal Family Education Loan appropriations.
Sec. 2202. Termination of Federal loan insurance program.
Sec. 2203. Termination of applicable interest rates.
Sec. 2204. Termination of Federal payments to reduce student interest costs.
Sec. 2205. Termination of FFEL PLUS Loans.
Sec. 2206. Federal Consolidation Loans.
Sec. 2207. Termination of Unsubsidized Stafford Loans for middle-income borrowers.
Sec. 2208. Termination of special allowances.
Sec. 2209. Origination of Direct Loans at institutions outside the United States.
Sec. 2210. Conforming amendments.
Sec. 2211. Terms and conditions of loans.
Sec. 2212. Contracts; mandatory funds.
Sec. 2213. Income-based repayment.
“If the applicant can show that they have a steady, stable, useful work history that is showing a consistent work history and ethic, it will prove that the student will not be wasting the university’s time and resources.”
Unfortunately, minimum wage regulations are destroying the ability of youth to take on low-skill jobs whereby they could create their own documented history of steady, stable, useful work.
Come to think of it, that’s precisely why there’s so much pressure for college attendance now: since youth are practically prohibited from learning marketable skills from the ground up by working (starting at $0/hr), they have to pay inordinate fees to spend years learning legal skills (to wit: worth more than minimum wage) in the classroom.
Trade school alone would give the little brats the skills they need to basically get something better and at least build a small resume. They could work through their twenties instead of thinking that a degree is the key.
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