Posts in "Tuition"

Bonnie Kristian's picture
By Bonnie Kristian at 8:07AM
Jun 11, 2010

Is the college tuition bubble going to burst?

Are college tuition rates the heir to inflated housing prices -- a bubble about to burst?  Here are eight arguments why they are (and here's the source and explanations for the arguments):

  1. Tuition is, and has been, increasing at double triple the rate of inflation
  2. Students are borrowing more than ever to pay for college
  3. For profit colleges are paying homeless people to take out federal loans to enroll
  4. Colleges are on a non-teaching staff hiring spree that far outpaces enrollment
  5. For profit reliance on federal loans has reached an all time high
  6. Schools are spending on luxurious amenities to lure in more students
  7. College president salaries are sky high, even in a historical economic downturn
  8. The student loan problem cuts across all schools, for profit and nonprofit

So what do you think:  Is the (government caused) tuition bubble going to burst?

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Bonnie Kristian's picture
By Bonnie Kristian at 12:55PM
Mar 9, 2010

March 4 Riots Missed the Point

imageFive days ago college campuses across the country erupted in riots over hikes in student fees and tuition.  Complaining about "government imposed austerity measures" was the students' goal as they protested to preserve what is so obviously their right:  Using ever larger amounts of other people's unwillingly given money to pay for their educations.

Mish Shedlock argues that they've missed the point:

The real problem is the entire student loan system is a scam. The government guarantees student loans so colleges have every reason to make the loans no matter how poor the student or how high the cost of education relative to job pay upon graduation.

Government guaranteeing the loans makes the money readily available to all takers driving up the cost of education.

It's an argument Peter Schiff has made repeatedly -- and one the March 4 protesters would be wise to consider.

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Bonnie Kristian's picture
By Bonnie Kristian at 10:15PM
Dec 2, 2009

College graduates' loan debt climbs to record levels

For students in Oregon (and around the country) times aren't good.  Debt and tuition are up; job opportunities are down:

More than 60 percent of Oregon's 2008 graduates in public and private colleges took loans averaging $21,029. That is the 22nd highest debt rate in the nation, and just slightly lower than the national average – a record high of $23,200.

Aggravating the problem is their difficulty in finding jobs that enable them to pay off their loans. National unemployment rates  for college graduates ages 20 to 24 rose from 7.6 percent in 2008 to 10.6 percent this year....At the same time, tuition has gone up significantly.

Peter Schiff has an explanation for the first two problems (well, and the third, but that's another blog post):

 It's the government's fault for handing out so much money through loans and grants.  No government bailout, Schiffian logic goes, no inflated tuition.

"College should not be so expensive. It's the biggest recession since the Great Depression. How could college prices go up?" Schiff asked...

Read the rest here.

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