On: Student Loans Are A Drag On The Economy

[higherpurpose]

So stop letting the government guarantee the loans. Watch how the prices fall once only a small fraction can afford to take a $200,000 loan to pay for their college, afterwards. US colleges have been spoiled. That's why prices are so high.

[dlp211 → higherpurpose]

That's not the only reason that costs are increasing and to imply that it is, is dishonest.

[dredmorbius → dlp211]

Curious, but what other reasons do you see?

[dlp211 → dredmorbius]

I go to a research university so there are 4 main sources of funding in no particular order:

1) State funding (public tax dollars)

2) Student tuition

3) Research Grants

4) Alumni donations

State funding is down, research grants are down, and alumni donations are down. The autonomous costs of a university don't decline, so that loss in revenue needs to be made up elsewhere, thus it comes from student tuition.

[dredmorbius → dlp211]

That sounds vaguely in line with the dynamic I'm recalling now with public university funding.

[aaron-lebo → higherpurpose]

How do you balance that with giving access to college to individuals who wouldn't have it otherwise?

It isn't black and white.

[judk → aaron-lebo]

Community college and tuition waivers. This is a solved problem, but needs more funding in some parts of the country.

[mikeyouse → judk]

How are tuition waivers any different than loan guarantees?

[res0nat0r → judk]

I wouldn't have wasted my times trying to get my CS degree at a community college. Going to a kore prestigious institution does have advantages.

[crucifiction → higherpurpose]

More likely, you will just see the proportion of foreign students increase dramatically. College these days is already mostly made up of semi-rich kids from America and actually-rich kids from China. With loans at least some middle class American kids get a shot.

[judk → crucifiction]

If the government+voters emergent system had any sense of responsibility, public schools would expand/reserve space to serve their public.

[lawnchair_larry → crucifiction]

Already starting. Universities are intentionally marketing how great it is to have diversity to soften the backlash.