b) but if there were, this pØs would be its main threat:
Posted on 04/03/2012 1:58:28 AM PDT by Cincinatus' Wife
Surging above $1 trillion, U.S. student loan debt has surpassed credit card and auto-loan debt. This debt explosion jeopardizes the fragile recovery, increases the burden on taxpayers and possibly sets the stage for a new economic crisis.
............. Newt Gingrich calls student loans a "Ponzi scheme" under which students spend the borrowed money now but will "have to pay off the national debt" later in life as taxpayers....
Lifting student debt higher and higher is the escalating cost of attending schools, with tuition increasing far faster than the rate of inflation. And enrollment has been rising for years, a trend that accelerated through the recent recession, fueling even more borrowing.
Mark Zandi, chief economist at Moody's Analytics, argues that government loans and subsidies are not particularly cost-effective for taxpayers because "universities and colleges just raise their tuition. It doesn't improve affordability and it doesn't make it easier to go to college."
"Of course, it's very hard on the kids who have gone through this, because they're on the hook," Zandi added. "And they're not going to be able to get off the hook."
..."Parents and the federal government shoulder a substantial part of the postsecondary education bill," said a new report by the Federal Reserve Bank of New York. And some of the borrowers are baby boomers, near or at retirement age. The Fed research found that Americans 60 and older still owe about $36 billion in student loans.
...."overburdened student-loan borrowers may fail to qualify for mortgages and "stay much longer in their parents' homes," Gault said. Young adults forming households have historically been the bulk of first-time home buyers — and their scarcity could dampen any housing recovery...
..........The reduced federal rate is now 3.4 percent. It the cuts aren't extended, it will rise to 6.8 percent....
(Excerpt) Read more at hosted2.ap.org ...
One good part is separating research from teaching so you can see which is productive and where the money is sunk.
Research (LIBERAL think tanks that have been shaping social and political policy with studies) is sucking huge amts of money (and continually demanding more) for tenured Sixties gray pony tails and those they've taught and brought into the "teaching" fold (and who have never lived or worked in the real world).
Teaching: neglected and often taught by teaching assistants -- and more than likely LIBERAL indoctrination.
What Are Texas’ Seven College Solutions? [snip] 1. Measure quality — The plan would calculate a cost-benefit analysis for professors. How much are they paid? How many classes do they teach? How many students? How do students rate those professor? The data would then be compiled into rankings, which students could review before choosing their instructors.
2. Recognize and reward teachers — This is merit pay for professors. The plan calls for the top 25 percent of professors to earn a bonus. Top bonuses would be $10,000 per class.
3. Separate budgets for teaching and research — This would allow colleges to better evaluate what kind of bang for its buck professors are providing. Splitting the pots of money would make it clearer how and why professors are paid.
4. Require evidence of skill for tenure — This would set easily-defined goals to earn tenure. For instance, a professor would have to earn a rating of 4.5 on a 5-point scale to be eligible for tenure. Likewise, a professor might have to teach at least three classes a semester, with at least 30 students in each class, for a set number of years before becoming eligible for tenure.
5. Results-based contracts with students — This amounts to a mortgage good faith estimate for students. Students would have to sign a document outlining the school’s class sizes, teacher evaluations, SAT scores of incoming students and other data that would allow them to make a better informed decision.
6. Funding in the hands of students — This proposal would take out the middle man in public funding. Some public money is given to schools as a tuition subsidy for student. The Texas Public Policy Foundation argues students will make the best decision if they get the money directly. Critics contend this creates a voucher system for colleges.
7. Create results-based accrediting alternatives — This proposal would gradually move schools away from traditional accrediting and create a national body similar to the Securities and Exchange Commission to evaluate college claims and actual results. Colleges that can not fulfill their recruiting pitch could be investigated for fraud. Establishing new accreditation would make it possible for more schools to enter the market. [snip]
Many state universities have been raising tuition like crazy because of state budget cuts.
Here’s a newsflash...this thread isn’t about the value of higher education.
The article is about the cost of it continuing to go up and up and about young people’s futures being ruined because they can’t afford to pay back their student loans, and just the fact that they owe this vast sum is causing their credit rating to tank.
It quotes Newt Gingrich calling the Federal student loan program “a ponzi scheme”.
Except under the current law, you can only default if you die. Student loan debt can not be discharged in bankruptcy.
Think about that. We have millions of kids with over $100K in debt and no jobs with no way of ever getting rid of that debt.
Believe me, it is not the for-profit institutions that are driving the debt. All the colleges have been raising tuitions because the money is there, and there are no tangible restraints. The money from raising tuitions at the college where I taught did not go to faculty salaries: I can testify to that. It seems to have gone to ever-expanding administration, including huge salaries for officials and their staff and offices.
At the time, as I watched this, all I could thought was: I think I know where the next bubble is going to be.
Trust me, they’re still a bargain compared to the for-profit schools.
Bingo! You'd be amazed at how many unfunded mandates are imposed on state universities by the state legislature.
Worker bee employees and faculty members haven't been getting pay increases. You have to be a rock star to get those in this environment.
b) but if there were, this pØs would be its main threat:
The U.S. government knows full well that it can't squeeze money out of someone who has none.
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