With all the discussion about the economy and jobs and future opportunities for those just getting out of school, it strikes me as odd, that no one is focused on WHY a college education is costing thousands and thousands of dollars these days? The coverage is about how families struggle to give the opportunity to their kids, NOT on WHY it is costing so much more now than ever to get a higher education. WHY?
Kids are getting out of school and already underwater SIGNIFICANTLY with debt. I have never thought much of the system of a bunch of kids sitting in a room listening to someone "lecture" to them and calling it education. Higher learning has become as much of a racket as the rest and it is time to call them on it.
I believe that online learning is the wave of the future. It is cost effective, time effective, and delivers the content needed for learning without the prohibitive tuition costs.
I think that for about 80% of those currently enrolled in college, it's a racket. Most would be better off learning how to be an electrician. In my opinion, only about 10% of jobs and professions actually require a college degree. And probably about the same number of students are actually intellectually equipped to obtain a quality, non-watered-down degree.
American families were sold a bill of good on the idea that a college degree guaranteed success. It's true that a college degree or higher is necessary for some professions. But when job openings for secretaries and assistant managers at McDonalds require one, it tells me the commodity has become too watered down and the supply has become greater than the actual demand.
I also think that there needs to be more accountability of how the money is spent by the colleges/universities. Does it really cost that much to run a school?
Higher learning has become as much of a racket as the rest and it is time to call them on it.
We have talked about this in some threads- and discussed some of those issues- and if it is worth it to start out life 100-$150,000 in debt before even getting started.
It is a racket and the bottom line is the knowledge they get isn't worth the price they pay. Also- student loans can not be dis-charged in bankrupcy- this debt will follow them their entire lives, and the creditors will garnish their social security checks if need be.
This will destroy their ability to save and invest. They are being robbed of their ability to buy a house because they owe a house worth of money right out of school.
Biggest racket out there today- the price of education. It starts with overpriced, over taxed grade schools- and extends right through college. We need a revolution in education.
As long as we keep giving in-state tuition breaks for people who are not citizens of this country - THAT's what is important !
This is becoming a huge problem. The costs associated with a college degree are getting so high that in some cases you have to wonder if the future income gained from having a degree will ever offset the cost of getting it in the first place.
How many college professors out there are being paid huge salaries to do anything but actually teach?
Have B-Schools become debtors' prisons?
August 18, 2011: 9:34 AM ET
MBA grads are shouldering record levels of debt as tuition rates head skyward, making the degree a risky investment that's not often approached with caution or restraint.
<jump>
To pay for it all, Jenkins took out $120,000 in loans. But his six-figure-salary job never materialized. "The career services staff basically said, 'We'll help you edit your resume, good luck out there,'" he recalls. "A lot of [my classmates] found jobs paying $55,000 to $65,000 per year, and they were very excited that they had a job."
In fact, Jenkins' class earned a mean base salary of $69,167, according to Pepperdine's official stats. They also owed an average $66,242. When the economy was doing well, and there was upward mobility, MBAs made sense, Jenkins says. "People were able to manage their debt load."
Personally I feel that experience wins hands down over an MBA any day and that businesses infatuation with these degrees have contributed to our economic woes.
The bulk of US colleges and universities are publicly funded. S
With financial problems, public funds have been drying up ---- so the student absorbs cost escalation, as well as cost shift. the portion of costs traditionally paid by the public. This year's tuition bill reflects a general rise in cost (inflation) -- as well as a shift in responsibility (from government to students).
Actually people have been paying attention to this for decades. Despite deflation and low inflation, university tuition keeps on rising at inflationary rates.
While so many other industries have become more productive by outsourcing and other labor saving devices, colleges feel little pressure to cut costs because they know they are in demand, especially with the current baby boomlet.
On Fox just the other day, they were warning there is going to be a Sallie Mae (student loans federally guaranteed) default because so many student debtors are out of work and can't re-pay their loans.
Thomas Sowell: There are no solutions, just trade-offs.
The used to finance loans - but were told to get out of the business (by the feds, who now enjoy a monopoly on the market).
Student loan defaults are on the rise because colleges and universities enrolled too many students (specifically - widened admission standards to admit and enroll students - but not graduate them).
You only need to make 30-35,000/yr in order to be able to shoulder the typical student loan. For a college graduate, that's not an unreasonable salary. The big problem arises when a student borrows money - but does not graduate. They get extra cost - without being able to earn extra revenue (that's when students default).
Student loans used to be insured by guarantee agencies (funded by a fee attached to the loan). With that model, defaults could usually be covered - just like auto accidents. However - the feds don't seem to appreciate the services of actuaries, quite as much.
What we have is more market failures, caused by inadequate thinking by government and politicians.
bailey bud wrote: You only need to make 30-35,000/yr in order to be able to shoulder the typical student loan.
Maybe if you are still living at home with mommy and daddy! I don't see where a $30,000 salary is going to have much left over for loan payments after paying for food, housing, transportation and other necessities.
