irstupid said:
Caps on tuition don't solve the problem. A school can charge whatever the hell it wants, imo. If it costs too much, then people could not afford to go and enrollment would decrease, forcing them to reduce cost. The reason they CAN raise the costs is because the government made it so that the poorest of the poor can go into huge debt. Like 90% of my friends all were paying for their school completely through loans. They and their families could not afford the school at all. Didn't matter if the school cost 3k a semester or 30k a semester, they would just get loans to cover it. No one got denied loans. Now if they were more strick on handing out loans, or capping loan amounts, then schools could not charge whatever the hell they wanted. If I could only get a 20k a year loan, I could not afford to go to a 40k a year school. That school would be forced to lower its prices so they could fill enrollment. But since I can get a 40k a year loan, the school can charge that amount. In both scenerios, my situation is the same. I'm not from a richer or poorer family, I dont' have anymore or less colateral, my cosigner is the same, ect. They just let me take out a bigger loan for no reason other than I said the school I am going to costs more. The schools KNOW that students can take out rediculous loans and thus they know they can raise tuition. Your thinking is backwards. Don't cap the schools limit on charging tuition, the market will self regulate that. There are only so many rich people that could afford super high tuition. Cap the limit on loans though. WIth unlimited loans, essentially everyone becomes super rich, thus the schools charge/raise tuition as if everyone is super rich. They don't care that everyone graduates with 50k+ in loans, because they are guaranteed that money. Did you know you can declare bankrupcy on everything in life except school loans. So not only the schools, but the loaners are guaranteed to always get their money, thus why they hand it out like candy to anyone who asks. |
Yes I know about the bankrupcy clause because I believe under George W Bush he made it harder to declare it. Makes sense for credit card debit where someone racks up shit and trys to bail out but when you go to college and economy collapses then he have almost entire fucked generation. Luckily the economy has staggered along and is semi supporting but the cost are too great. I agree with you on basis yes lets keep having these colleges raise their rates and eventually on the rich and attend it thus forcing them to reduce their rates.
However, this would only happen in a perfect world. How come most of Europe can afford to send their kids to school? Because they pay higher tax. What happened in USA is you turned education into a money making institution. It only wants more money. Just like our healthcare. Just keep feeding the beast.
The next big collapse won't be adjustable rate mortgages as in 2008 it will be college debt.
