25 ms·

Which was the status quo before federal student loans.

Kevguy 8y ago
I know the standard talking point is that easily available student loans is the only cause of tuition increasing so much over the years. But this ignores the massive drop of state funding that used to go to most colleges, and (IMO even more important) demand vs supply. It used to be that college was one of several valid options after high school, but now everyone is supposed to go to college and there is a lot of societal pressure to go, without regard to what a person wants to do with their life. This allows colleges to keep increasing tuition almost without limit, because you _have_ to get a degree so cost doesn't stop people from going.
JimboOmega 8y ago
I'm just curious, before federal loans, were private lenders willing to fund anybody, or only degrees they found lucrative? Or was the tuition so low it didn't matter? (E.g., somebody who gets a psychology degree and winds up making $40k/year doing data entry still can afford to pay the relatively small amount)?
- jki275 8y ago
  I don't remember the exact numbers, but tuition in the 90s was very low in comparison. Here's a link that shows 2-3x increase in adjusted dollars: https://www.cnbc.com/2017/11/29/how-much-college-tuition-has-increased-from-1988-to-2018.html https://www.cnbc.com/2017/11/29/how-much-college-tuition-has...
- derekp7 8y ago
  From what I recall, parents had to save for their kids college, and if you didn't have a college savings fund then you worked your butt off in high school in order to qualify for scholarships. And you worked a side job to pay your way through college. And a lot of people didn't go to college, because a lot of people could get really good (decent paying) jobs without it.
- squirrelicus 8y ago
  Before federal student loans it was possible to attend University on a part time wage. It was hell, like it always is when trying to improve your socio economic status. But possible, unlike today.

I know the standard talking point is that easily available student loans is the only cause of tuition increasing so much over the years. But this ignores the massive drop of state funding that used to go to most colleges, and (IMO even more important) demand vs supply. It used to be that college was one of several valid options after high school, but now everyone is supposed to go to college and there is a lot of societal pressure to go, without regard to what a person wants to do with their life. This allows colleges to keep increasing tuition almost without limit, because you _have_ to get a degree so cost doesn't stop people from going.

JimboOmega 8y ago

I'm just curious, before federal loans, were private lenders willing to fund anybody, or only degrees they found lucrative? Or was the tuition so low it didn't matter? (E.g., somebody who gets a psychology degree and winds up making $40k/year doing data entry still can afford to pay the relatively small amount)?

jki275 8y ago
I don't remember the exact numbers, but tuition in the 90s was very low in comparison. Here's a link that shows 2-3x increase in adjusted dollars: https://www.cnbc.com/2017/11/29/how-much-college-tuition-has-increased-from-1988-to-2018.html https://www.cnbc.com/2017/11/29/how-much-college-tuition-has...
derekp7 8y ago
From what I recall, parents had to save for their kids college, and if you didn't have a college savings fund then you worked your butt off in high school in order to qualify for scholarships. And you worked a side job to pay your way through college. And a lot of people didn't go to college, because a lot of people could get really good (decent paying) jobs without it.
squirrelicus 8y ago
Before federal student loans it was possible to attend University on a part time wage. It was hell, like it always is when trying to improve your socio economic status. But possible, unlike today.