Posted on 09/09/2015 10:15:50 AM PDT by Responsibility2nd
In 1987, President Reagan's secretary of education, Bill Bennett, published a now classic New York Times op-ed titled “Our Greedy Colleges” in which he argued that the government's attempts to make higher education more accessible may have also accidentally made it more expensive. “If anything,” he wrote, “increases in financial aid in recent years have enabled colleges and universities blithely to raise their tuitions, confident that Federal loan subsidies would help cushion the increase.” Ever since then, academics have sparred over whether the so-called Bennett hypothesis is really true. Do colleges actually take advantage of all those federal grants and loans by hiking their prices? And if so, are some schools even more callous about it than others?
Economists have delivered inconsistent answers to those questions over the years. (I reviewed the research back in 2012 while Vox's Libby Nelson published a great, updated rundown in August). But it’s always seemed possible that Bennett's idea contained at least a grain of truth.
(Excerpt) Read more at slate.com ...
Bigger loans!?
More money means more programs. More programs means more teachers. The grants do not meet all the growth. Prices rise.
Like every other liberal program, this one is no different.
two articles about college welfare driving up the costs of higher education:
2011: Why the Government is to Blame for High College Costs
2015: Financial Aid Helps Colleges More Than Students
The bubble is too huge now. There is now way to slowly deflate it. The best course is to simply STOP issuing all government loans and aid.
Why would it be any different from copper producers, house builders, or internet service providers who expanded too quickly in a bull market based on easy access to cheap debt?
Prices will crash. Midding suppliers (i.e. colleges) will go out of business. The survivors will learn to refocus and become more economical. Staff will be laid off. indebted consumers will need to declare bankruptcy.
The Education-Industrial complex is a pillar of the Left and Progressive Government, so it will not go down easily without a lot of kicking and screaming from the likes of Bernie Sanders.
Uh, take classes on the ‘net before the FCC strangles it?
Well, what if women’s study and gender study professors income was based on their value to the free market?
College academia is not the only greedy ones out there.
Politicians and the exempt ones.
Firefighters and law enforcement. Double-dippers, etc.
One just has to look inside the 50 mile radius around D.C.
Get the federal and state governments out of the student loan business and out of the government paid tuition business and tuition will drop.
If you were graduating with a women’s study degree....I doubt if you have much of a future for employment....other than being a high-school teacher somewhere in west Texas with a useless degree.
Here is what can be done:
1) Select a university that is affordable.
2) Live at home and commute to school.
3) Work several part time jobs while in college.
4) Keep borrowing to a minimum.
I know this works. It’s what I did.
“I know this works. It’s what I did.”
In the end you will be taxed to pay for those who DIDNT do like you !
Well DDDDDDUUUUUUUUUHhhhhhhhhh! Of course it has! Check when the rise in tuition started.
5.56mm
It's been slowly deflating for a few years, not least because the pool of students has been shrinking, due to fewer kids being born and graduating from high school.
Automatic, big faculty raises have given way to smaller raises, then no raises, and currently, breathing a sigh of relief at each year's retirements and not necessarily hiring replacements.
Tuition rate growth slowed, then stopped, and now in many places is being cut. But it's a long way to normal.
Probably true. But I still hate excessive debt.
Most of the people I know who have racked up astronomical student debt have the following things in common:
1) They attended an expensive private college beyond the means of their families.
2) They lived in dorms or apartments away from their parents’ home.
3) They did not work while attending college.
I have been saying this for years.
The cost of ANYTHING will ALWAYS = What the market will bear + any subsides offered.
So if a person is willing and able to pay $10,000 for college and gets $5,000 is government grants. They will pay $15,000 for college. If the grant is increased to $10,000 the cost will be $20,000 ect.
It’s the same with healthcare too.
If a person is willing and able to pay $10 per pill and an insurance company is willing to pay $8, the cost of the pill will be $18.
The gatekeeper role for good jobs is a bigger reason IMO.
Since the mid 1960s colleges have managed to create a situation where people need college paper to get considered for decent employment, even when that ‘education’ is irrelevant to the job.
Doctors, engineers, lawyers need specialized training. But in a lot of cases students are just being robbed by a slick academic robbery gang.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
