An Ivy Greed Education

The problem is on the college side of the equation, not the student loans per se.

Why should colleges get to raise their prices at rates wildly above inflation, incomes and earning power year after year with impunity?  What makes them special, and how can their constituent costs possibly be that out of control?

I’ve been convinced for years that college education as we know it is headed for major changes; sort of a housing bubble in even slower motion.  The thing with housing is easy financing helped drive the prices wild, given the availability of money to chase supply.  Now the financing is in trouble, but it’s not all supported or given special consideration by the government the way college education loan money is.

Since the money is available, the schools will happily keep vacuuming it into their coffers as long as the scheme lasts.  It’s a little bit chicken and egg, but ultimately the schools are culpable and will hurt themselves by being all too human about getting it while they can and letting the good times roll.

1. I remember 30 years ago, when I was an undergraduate at the University of Wisconsin-Madison, and in-state tuition was $225 per semester. Even in the money of the late 1970s, that was eminently affordable. I came out of four years as an undergrad, plus three years of graduate school, only $1800 in debt. And that was loans at only 3% interest.

   I feel sorry for the kids I know nowadays who are in college, piling up massive debts that they’ll be struggling for years to pay off.

   Posted by Paul Burgess  on  03/16  at  08:04 AM  from 
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