About that college tuition "bubble".
cohodk
Posts: 19,155 ✭✭✭✭✭
Excuses are tools of the ignorant
Knowledge is the enemy of fear
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cohodk
Posts: 19,155 ✭✭✭✭✭
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tick, tick, tick. . .
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
A lot of truth there... My wife teaches at a college, and that is exactly what is happening there. Tremendous decrease in enrollment over the past several years. Another part of that is that kids can remain on their parents insurance until 26... used to be that they had to be students... no more. Cheers, RickO
The cost of university tuition is truly ridiculous. Education and health care are both well funded rackets.
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If only there was a draft to dodge
that will get college enrollment up. Nobody is going to Canada in wartime anymore college will be where its at. , heck all those idiots that said they were moving there if Trump won never went either
The best cure for high prices is high pruces. The college debt problem is no problem.
Knowledge is the enemy of fear
Nothing is a problem with you Cohodk. You would have been playing Sousa tunes during the Bataan March.
Oh, I see problems, but they are much different than these relatively inconsequential monetary problems you guys see. If these problems you see keep you up at night, then you certainly don't want to see what I see.
It's all relative Glicker, just like everything in life. The more you know and experience, the better perspective you can have.
Knowledge is the enemy of fear
In 2015, more than two-thirds of graduates graduated with student loan debt, and their average debt at graduation was about $35,000, tripling in two decades. Starting a career with this much debt is a problem. And because it now involves $1.3 trillion of debt, and growing, it will become everyone's problem.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I graduated from college almost 30 years ago with a comparable amount of debt and a higher interest rate. $35 grand is nothing. The college debt "problem" is not a problem.
Knowledge is the enemy of fear
Speaking of bubbles, I do believe you have one of your own.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Thank you.
Knowledge is the enemy of fear
College debt is causing many, many problems. I was recently talking to my dentist and he attributes the shift in dental services from single dentist offices to corporate dental offices to the debt problem. A dental student without scholarships will rack up about a half million dollars in student loan debt. They aren't able to finance their own practice and are forced to work for the corporate dental offices where their "job" is to sell, sell, sell.
Interesting that $35 grand is also the average price of a new vehicle with vehicle loans and student loan debt both around $1.3 trillion today.
What college cost $25,000-$45,000 a year back in the 1980's? Asking cause I wasn't born till '88. Its easy for someone who doesn't have to deal with the problem to call it "not a problem". I think its pretty clear that a 3x-4x increase over the last 30 years has occurred...
http://www.businessinsider.com/this-chart-shows-college-tuition-growth-since-1980-2016-8
Maybe I attended university for more than 1 year.
My first year after graduation i made $12k and rented a room from a 90 year old lady for $50 a week. so don't assume I'm "someone who doesn't have to deal with the problem". Problems are only problems if you don't face them. Accept your challenge, conquer it, and succeed.
And yes, undeniably, prices have risen dramatically, and we are beginning to see the cure for those high prices.
Knowledge is the enemy of fear
cure for prices? how about a cure for the debt. Debt is the problem, not prices. Financing is what makes high prices acceptable in most consumer markets.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Financing is an individual choice. Accept your responsibilty.
Knowledge is the enemy of fear
How many of our laws regarding financing have actually been written by the legal departments of the big financial companies. How many of our recessions have been caused by the abuses those laws allowed the big financial companies to commit?
...and remove all government funding for students, too. Then two possible results...close doors or lower tuition.
The grifters have tainted everything else why not college too?
About that debt. . .
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
This is exactly why tuition soared. Subsidies always result in much higher prices.
Knowledge is the enemy of fear
We poor Americans seem to be handling it quite well with a default rate of about half of what it was in 2008 and bankruptcies have declined over the last year.
Did you know that total consumer debt has increased--which just a few interruptions-- every year since 1945. I think the last 70 years have been quite good, don't you?
Knowledge is the enemy of fear
The at least last 60 years have been pretty good, but then again I'm no slave to debt.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I do agree with that depending on what you go into, but the basic four year you can earn and pay as you go. my biggest bill in my life is health insurance $2300 a month before Obama it was $850 almost tripled and it is almost 3/4 of my monthly personal bills.
Due in large part to govt subsidies.
Knowledge is the enemy of fear
Yep a new tax was born
This article is slightly dated but still worthy of the few minutes it takes to read (Only 3 short pages).
At first you may think it's unrelated to the topic at hand, but think more and you should begin to see why it's actually an intrical piece of the puzzle related to rising tuition costs at some institutions.
"Gaming the system"
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2016 Revised Down To The Worst Year For US Productivity Since 1982
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I listened to Elizabeth Warren complaining about this then I recalled shes a Senator who also gets paid to teach at a college , over $300,000 I believe but she only is listed for 1 class , and someone else teaches it for her I assume since is in Washington most of the time. HMMMMMMMMM
Lazy me , even though it seems like have always had more than 1 job I can honestly say I never had simultaneous full time jobs . I need to put my nose to the grind stone
I plead the fifth of vodka.
The default rate might be relatively low, but deferment is on its way up. Plus with relatively new income based payment plans, people can pay effectively $0 or a very small amount without being considered defaulting if they are making minimum wage or something with their worthless degrees. College and Financial institutions are getting good at delaying the issue.
https://www.cnbc.com/2017/08/09/the-costs-of-deferring-a-student-loan-may-make-you-think-twice.html
debt results in the spending of future money. Think of it as a ponzi.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
when I first read that '30 years ago' part, I thought, "man, he must be an old timer." Then I did the math. I graduated 30 years ago too
The prices for training are unreasonably high, and there is no correlation between the cost and quality of training. It is high time for America to switch to cheaper education.
Yeah...sure doesn't feel like it.
Knowledge is the enemy of fear
That makes three of us.
Here in Iowa they want to raise tuition 7% a year for the next 5 years for the 3 state schools.
40 years for me.
Yep.
If 35 grand is nothing, please send me nothing.
@TwoSides2aCoin said:
As long as you send me the next 40 years of earnings above a non college educated profession.
Knowledge is the enemy of fear
The big money is in trade businesses. HIre, fix, bill.
Expand and repeat.
waiting tables and tending bar doesn't pay as well as you think, even with a degree.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Maybe I'm wrong, but I don't think those are college educated professions. Nope, I'm not wrong.
Knowledge is the enemy of fear
You are right, the professions don't require a degree. Unfortunately many of those in the positions have a college degree. Seems to be many more degrees than high paying jobs.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Then maybe folks will stop paying 100k for a liberal arts degree. Maybe folks will stop paying 100k for a degree they could have gotten elsewhere for 20k. Make better decisions and get a better job...there are 5 million job openings....go get one.
Knowledge is the enemy of fear
Have fun at work. Have fun at play. "Have fun with your coins". The underlying message is : "have fun", no matter what.
Your experience of 30 years ago is out of touch with today's reality.
Suppose you want to go to College, and not incur the debt. So you work and save to pay for it debt-free.
But even if your "individual choice" is not to finance it, you are still affected by all those that do finance it because they bid up the cost of going to college and so you must work ever harder and save ever more to be able to go.
If an individual has a college degree and a lot of debt and is working as a waiter or bartender or barrista or the hotel desk for any length of time, it is unlikely to be anyone else's fault but their own.
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