Today, however, Ms. Munna, a 26-year-old graduate of New York University, has nearly $100,000 in student loan debt from her four years in college, and affording the full monthly payments would be a struggle. For much of the time since her 2005 graduation, she's been enrolled in night school, which allows her to defer loan payments.I've pointed out for years now that the primary cost driver for higher education in this country has been "EZ loans for all." When virtually anyone can get $100k, $200k, $300k in cash for college expenses, what should you expect? It's a repeat of bubble pricing during the subprime mortgage fiasco. Here's a novel thought: Make all student loans non-recourse, and get government out of the loan process. The price of a college education would collapse within 1-2 years.
That doesn't help people like Ms. Munna because the damage is already done. That's why Congress will bail them out very soon.
9 comments:
Quiet, you'll give Casey ideas.
"Yes, I'm going for a bachelor's degree in queer studies and I would like a $200,000 loan."
Of course, he's a serial fraudster so he'll try to do this multiple times before vanishing with a million bucks in cash.
Talk about a powerful block...break it down, offering useless degrees takes workers off the market and makes them feel good while lowering unemploymnet rates, teachers get jobs for life at high relative pay/benefits packages, liberal studies teach the young the beauty of socialism and evil of capitalism, all wraped in feel good politics. College degrees in womens studies for 100,000 and the article never questioned how that decision was going to pay off? The author must be a college graduate that has yet to figure out that they have been had.
The federal government may bail out the squishy minded subprime students, but when the governement does so they'll tax them for it for it as an income in the present, and then add the the principal amount to the federal debt that these same young people and others of their age will be paying, one way or the other, down the line.
Meanwhile Sallie Mae and the Orwellian Dept of Education will continue doing their thing, inflating costs, buying votes with borrowed money, spreading favors and jobs around.
But Obama just wants everyone to get a college education. Isn't that fair?
Speaking of bailouts...and Ridin' Dirty when it comes to paying the mortgage:
http://blogs.wsj.com/developments/2010/06/04/rapper-chamillionaire-ridin-into-foreclosure-on-houston-mansion/
Houston, you own this little twerp.
Lou,
Do you really want all those Masters of Edjamaktion at loose in the productive economy? Think of the havoc, the productivity decline.
Yea, edjamaktion seems expensive, but only when you think of the alternative.
Minnsota Public Radio had a surprisingly sensible interview with Anya Kamanetz.
http://minnesota.publicradio.org/display/web/2010/06/04/midmorning2/
The money quote: "Educators think the solution to 'not enough money' is to simply find more money. Not many people in higher ed seem to care about reducing cost."
She also stole your real-estate parallel, Lou!
Why are these kids from modest backgrounds attending NYU in the first place? What's wrong with SUNY?
How can anyone ever imagine that somebody with an interdisciplinary degree in "religious and women’s studies" will ever find a well paying job?
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