If someone wants to address price gouging start here!
Vote blue no matter who and we can get these student loans forgiven!
Because the powers that be are profiting as well!
Because of government-backed student loans.
It’s free money for the institution and everyone else gets saddled with debt that controls their lives.
My state government did. They gradually reduced the budget for our university system forcing the individual campuses to lobby for increased tuition which happens in big bursts, with off years to say “no raise this year”. That’s why fees have gone up to compensate. Over a twenty year period while employed on a campus, the state contribution to the overall campus budget went from ~45% to less than ~20%, yet the state maintains 100% control. The campuses make up the difference with fees, contracts for vending machines, corporate donations, begging alumni and raising tuition.
They did do something, they stopped subsidizing colleges after Reagan turned many people against it.
What do you expect them to do?
The problem is…the government DID do something.
Have you looked at that graph? The government is already full-open throttle, three sheets open, pedal-to-the-floor doing something. Stop worrying and love the tuition.
Government can’t pay their own bills let alone help their employers. Nancy Pelosi only cares about her insider trading.
The graph is deliberately misleading. First, it hasn’t adjusted for inflation. Secondly, it conveniently omits public investment in higher education; states have been steadily dropping their per-pupil allocations so public universities have to raise tuition to offset the drop in state appropriations.
They could do few things. In my opinion.
1. End loans, since this is pushing prices up
2. Have incentives for American citizens, a lot of foreigners are using the American education system, causing huge competition. In Europe many universities are much cheaper for EU citizens.
3. Make clear rules that don’t allow people buying spot in universities without deserving it.
Maybe we can offset these differences with augmented AI? 🤖
They created this on purpose – they are letting it happen – this money goes right into the pockets of their top donors.
Is cost of tuition adjusted for inflation?
Just don’t subsidize student loans and watch those costs fall
The graph is the sticker price, not the actual costs. Lots of schools raise their price to attract students – the economics of “the price is $30k and we’re giving you a 50% scholarship” vs “the price is $60k and we’re giving a 75% scholarship” basically mean the same thing to the school, but a student feels like they’re getting a much better deal at the second.
At top schools the main group paying the full sticker price are international students and less academically talented rich kids.
Lower tier schools are more likely to set their tuition to max out available student loans, get students who are told “you must go to college” but aren’t academically really prepared for it, etc. The more subsidized loans are available, the more they charge.
I think there’s some room to revise the federal subsidized loans to base the amount they will loan around a particular programs expected future value. Ex: you get $0 for university of Phoenix, but Harvard or Stanford probably qualify for the whole amount, etc.
Well. The government already did something … in the 1980s. They cut public funding for schools and universities, forcing the people attending the schools to pay for the service. And so the student loans were born. Yay!
Higher education and licensing are increasingly a gate way for nepotism. The developing world is quickly closing the gap when it comes to middle class skills, and a lot of upper class skills. It is increasingly about established wealth buying opportunities for their kids, and excluding opportunities from poor people.
There is not good reason higher education shouldn’t be free to the consumer.
Why doesn’t the government do something??? The government did do something. They quit funding public education (well, reduced) and gave out cheap loans and told you that no matter your degree you will make lots of money.
Doesn’t this correlate to the losses of population in the middle class?
The government is why we’re in this mess!
The education system in Colorado is poorly funded. In fact despite being a top ten USA economy, we rank near the bottom in terms of funding. As a result Colorado university tuition rates are very expensive. Thank goodness for in state tuition rates!
Well tbf government is just a group of people.
Half the government wants this and they want it to be worse….because they hate education.
Why don’t people understand that government isn’t some magic monster but rather people who are influenced by the public.
Poors in college!? But what about the desperate workers we’ve taken so long to cultivate?
That’s what happens when the government does something
26 comments
If someone wants to address price gouging start here!
Vote blue no matter who and we can get these student loans forgiven!
Because the powers that be are profiting as well!
Because of government-backed student loans.
It’s free money for the institution and everyone else gets saddled with debt that controls their lives.
My state government did. They gradually reduced the budget for our university system forcing the individual campuses to lobby for increased tuition which happens in big bursts, with off years to say “no raise this year”. That’s why fees have gone up to compensate. Over a twenty year period while employed on a campus, the state contribution to the overall campus budget went from ~45% to less than ~20%, yet the state maintains 100% control. The campuses make up the difference with fees, contracts for vending machines, corporate donations, begging alumni and raising tuition.
They did do something, they stopped subsidizing colleges after Reagan turned many people against it.
What do you expect them to do?
The problem is…the government DID do something.
Have you looked at that graph? The government is already full-open throttle, three sheets open, pedal-to-the-floor doing something. Stop worrying and love the tuition.
Government can’t pay their own bills let alone help their employers. Nancy Pelosi only cares about her insider trading.
The graph is deliberately misleading. First, it hasn’t adjusted for inflation. Secondly, it conveniently omits public investment in higher education; states have been steadily dropping their per-pupil allocations so public universities have to raise tuition to offset the drop in state appropriations.
Finally, [Baumol’s Cost Effect](https://www.vox.com/new-money/2017/5/4/15547364/baumol-cost-disease-explained) comes into play here, too.
They could do few things. In my opinion.
1. End loans, since this is pushing prices up
2. Have incentives for American citizens, a lot of foreigners are using the American education system, causing huge competition. In Europe many universities are much cheaper for EU citizens.
3. Make clear rules that don’t allow people buying spot in universities without deserving it.
Maybe we can offset these differences with augmented AI? 🤖
They created this on purpose – they are letting it happen – this money goes right into the pockets of their top donors.
Is cost of tuition adjusted for inflation?
Just don’t subsidize student loans and watch those costs fall
The graph is the sticker price, not the actual costs. Lots of schools raise their price to attract students – the economics of “the price is $30k and we’re giving you a 50% scholarship” vs “the price is $60k and we’re giving a 75% scholarship” basically mean the same thing to the school, but a student feels like they’re getting a much better deal at the second.
The very top schools (ivy leagues, for instance) all have sliding scale tuition where someone who’s family makes less than something like $80k pays $0. Here’s Harvard’s statement on it https://college.harvard.edu/admissions/why-harvard/affordability
At top schools the main group paying the full sticker price are international students and less academically talented rich kids.
Lower tier schools are more likely to set their tuition to max out available student loans, get students who are told “you must go to college” but aren’t academically really prepared for it, etc. The more subsidized loans are available, the more they charge.
I think there’s some room to revise the federal subsidized loans to base the amount they will loan around a particular programs expected future value. Ex: you get $0 for university of Phoenix, but Harvard or Stanford probably qualify for the whole amount, etc.
Well. The government already did something … in the 1980s. They cut public funding for schools and universities, forcing the people attending the schools to pay for the service. And so the student loans were born. Yay!
Higher education and licensing are increasingly a gate way for nepotism. The developing world is quickly closing the gap when it comes to middle class skills, and a lot of upper class skills. It is increasingly about established wealth buying opportunities for their kids, and excluding opportunities from poor people.
There is not good reason higher education shouldn’t be free to the consumer.
Why doesn’t the government do something??? The government did do something. They quit funding public education (well, reduced) and gave out cheap loans and told you that no matter your degree you will make lots of money.
Doesn’t this correlate to the losses of population in the middle class?
The government is why we’re in this mess!
The education system in Colorado is poorly funded. In fact despite being a top ten USA economy, we rank near the bottom in terms of funding. As a result Colorado university tuition rates are very expensive. Thank goodness for in state tuition rates!
Well tbf government is just a group of people.
Half the government wants this and they want it to be worse….because they hate education.
Why don’t people understand that government isn’t some magic monster but rather people who are influenced by the public.
Poors in college!? But what about the desperate workers we’ve taken so long to cultivate?
That’s what happens when the government does something