Good point well I guess the cheap-financing era is coming to an end -- hopefully that will start putting pressure on tuition prices.
I do think it's sad that the first thing that gets cut in this world is public education budgets.
Re: college costs
burn0050
4/19/2012 2:01:17 PM
I'm sure a good chunk of it goes towards "recruiting" of athletes. Which is the other bizarre part of it. Colleges and universities (the bigger ones, at least) make huge amounts of money from the broadcast rights for their sports, not to mention playoff/bowl money, all of which has only increased in the last 10 years.
Someone needs to show this chart on TV to let the real outrage begin. And Obama wants more people to get higher education? We've already got enough debt in this country - how will we ever afford this? I think we NEED to make higher education more affordable, as the US is already losing its place in the science/technology world.
I only have some college education, but being in computers has allowed me to have a successful career. Looks like I may need to teach my kids how to trade for a living...
Re: college costs
driven
4/19/2012 1:21:32 PM
By the time your daughter graduates, the value of a $1 will be a fraction of its current rate, so the loans she has to take out won't seem so bad. Or else the whole country will be bankrupt and it won't matter.
i was SO HAPPY to see that my daughter's #1 choice of college is the most expensive public school in the US.
| U.S. Department of Education |
| Public, 4-year or above with Highest Tuition |
| National Average: $6,397 |
| Pennsylvania State University-Main Campus |
PA |
$14,416 |
| University of Pittsburgh-Pittsburgh Campus |
PA |
$14,154 |
| University of Vermont |
VT |
$13,554 |
| St. Mary's College of Maryland |
MD |
$13,234 |
| New Jersey Institute of Technology |
NJ |
$12,856 |
| Pennsylvania State University-Penn State Altoona |
PA |
$12,750 |
| Pennsylvania State University-Penn State Berks |
PA |
$12,750 |
| Pennsylvania State University-Penn State Erie-Behrend College |
PA |
$12,750 |
| Pennsylvania State University-Penn State Harrisburg |
PA |
$12,750 |
| University of New Hampshire-Main Campus |
NH |
$12,743 |
| The College of New Jersey |
NJ |
$12,722 |
| University of Illinois at Urbana-Champaign |
IL |
$12,528 |
| Pennsylvania College of Technology |
PA |
$12,480 |
| Miami University-Oxford |
OH |
$12,312 |
| Pennsylvania State University-Penn State Abington |
PA |
$12,250 |
| Pennsylvania State University-Penn State Beaver |
PA |
$12,250 |
| Pennsylvania State University-Penn State Greater Allegheny |
PA |
$12,250 |
| Pennsylvania State University-Penn State Lehigh Valley |
PA |
$12,250 |
| Pennsylvania State University-Penn State Mont Alto |
PA |
$12,250 |
| Colorado School of Mines |
CO |
$12,244 |
| Pennsylvania State University-Penn State Hazleton |
PA |
$12,200 |
| Pennsylvania State University-Penn State New Kensington |
PA |
$12,200 |
| Pennsylvania State University-Brandywine |
PA |
$12,150 |
| Pennsylvania State University-Penn State Fayette- Eberly Campus |
PA |
$12,150 |
| Pennsylvania State University-Penn State Schuylkill |
PA |
$12,150 |
| Pennsylvania State University-Penn State Wilkes-Barre |
PA |
$12,150 |
| Pennsylvania State University-Penn State Dubois |
PA |
$12,130 |
| Pennsylvania State University-Penn State Worthington Scranton |
PA |
$12,110 |
| Pennsylvania State University-Penn State York |
PA |
$12,110 |
| Pennsylvania State University-Penn State Shenango |
PA |
$12,050 |
| University of Illinois at Chicago |
IL |
$12,034 |
| University of Massachusetts Amherst |
MA |
$11,917 |
Student financing is not cheap. Unsubsidized Stafford loans are now going for 6.8% -- and if a couple makes a combined income of more than about $50,000, their child will be offered an unsubsidized loan.
Private loans (from banks) are even higher.
Not sure if this will help or just create more paperwork. But under new federal law, the five hundred thirty colleges with the fastest-rising published tuition costs will now be required to explain to U.S. Department of Education officials why these costs went up. In addition, these institutions will need to outline strategies for controlling cost in the future.
What do you think?
My theory on tuition is that it is like the housing bubble: easy financing.
In my 15 years of financial journalism, I have noticed a theme: Bubbles are often connected to easy financing. This happened in the telecom/networking bubble of 1998-2000, when companies provided "vendor financing" to their suppliers -- lending them money to buy their gear. In housing, it was the mortgage lenders who laid down easy money to stimulate housing demand.
So what's going on in tuition? $1T in student debt is financed largely by low-interest loans subsidized by the government. There is a connection here, as easy financing distorts the market and makes it hard to value the actual product in a cash market.
Imagine for a moment if there was not easy student-loan model or that student financing was @6%. What would happen to tuition rates?
I can tell you why tuition is so high...because we are being scammed.
It really makes little sense, especially since Like most non-profit organizations, universities pay no property taxes; many of the buildings were gifts from wealthy donors; and professors, as a rule, don't earn mega-salaries. Where is the money going?
There have been suggestions on the message boards before that the best solution is for the federal and state govts to stop making student grants -- then the colleges would have to reassess their ridiculous tuition structures to attract students. As it is, the grants just lop off a small portion of an outrageous bill and students still end up taking out loans to cover the difference,
Re: college costs
burn0050
4/18/2012 10:19:17 PM
How is it that college tuition has soared so much higher than everything, especially health care costs? I would swear that dotted red line would be health care. That's crazy, and I just don't understand it. Any college professors here, or better yet, college administrators that can explain it?
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