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As a foreigner, it sounds to me the root of the problem is still university being way too expensive. Also, shouldn't the government provide direct financial ass

As a foreigner, it sounds to me the root of the problem is still university being way too expensive. Also, shouldn't the government provide direct financial assistance to low income people being admitted to good colleges without needing them to ever pay back?

graeme 8y ago
In reverse: unlimited loans are give that cannot be waived in university. This bids up the cost of university and has schools compete on features rather than price.
metaphor 8y ago
In general, private university tuition is extremely expensive. There are certainly exceptions to this rule that keep costs reasonable--e.g. for the financially strapped, Stanford has a "student obligation" program[1] as an element of financial aid--but they're not all comparable. Conversely, I personally think in-state tuition for public research universities of sound rapport are fair. A big issue is when an undergraduate student moves to a different state to study and is charged out-of-state tuition for at least a year before establishing residency; that single-year cost often exceeds what a 4-year student would pay at in-state rates. In some states--like CA--you're pretty much screwed[2] and will pay out-of-state rates comparable to private universities for the effective duration of study. Then there's private student loans issued by banks at gouging rates. They're super easy to qualify for and super easy to get out of control. Anecdotally, I took one out (12.74%!) during my last semester of undergraduate study which amounted to ~10% of my total student loan obligation in the end before capitalization; it was my only option since I didn't meet full-time student status that semester and didn't qualify for federal aid. This was the first loan I paid off and within 6 months of graduating, yet the interest paid on this single private loan accounted for 15% of the interest paid on the 7 other federal student loans that I paid off over the subsequent 4.5 years! It's crazy to think what that one private student loan would have cost me if I had paid it off over 5 years, let alone a 10-year period that federal student loans are amortized over. EDIT: > Also, shouldn't the government provide direct financial assistance to low income people being admitted to good colleges without needing them to ever pay back? Forgot to mention, this takes the form of academic grants[3]. Pell and SMART Grants are fairly common. [1] https://financialaid.stanford.edu/undergrad/how/student.html https://financialaid.stanford.edu/undergrad/how/student.html [2] https://www.ucop.edu/residency/residency-requirements.html https://www.ucop.edu/residency/residency-requirements.html [3] https://www2.ed.gov/programs/smart/index.html https://www2.ed.gov/programs/smart/index.html
goldcd 8y ago
I'm in the UK and went through tertiary education (Degree and Masters) at the point where we were switching towards the US model. I never paid for the education itself, but never received any funding to pay for my existence over those years. I was fortunate to have parents who could support me into my mid-twenties. The system has changed since. We've got people racking up debts they're never going to pay off for useless degrees (in UK there's threshold of income before you have to repay, and if you never reach it, it's written off). We've also got companies that used to recruit 'good' graduates (IT/accountancy behemoths) recruiting at school-exit age and offering a career to the good encumbered with debt. My takeaway thought is that tertiary education is no longer worthwhile for the sake of education. We're becoming much more utilitarian. Short term it makes sense, but long-term seems insane to not invest in people.

graeme 8y ago

In reverse: unlimited loans are give that cannot be waived in university. This bids up the cost of university and has schools compete on features rather than price.

metaphor 8y ago

In general, private university tuition is extremely expensive. There are certainly exceptions to this rule that keep costs reasonable--e.g. for the financially strapped, Stanford has a "student obligation" program[1] as an element of financial aid--but they're not all comparable. Conversely, I personally think in-state tuition for public research universities of sound rapport are fair. A big issue is when an undergraduate student moves to a different state to study and is charged out-of-state tuition for at least a year before establishing residency; that single-year cost often exceeds what a 4-year student would pay at in-state rates. In some states--like CA--you're pretty much screwed[2] and will pay out-of-state rates comparable to private universities for the effective duration of study. Then there's private student loans issued by banks at gouging rates. They're super easy to qualify for and super easy to get out of control. Anecdotally, I took one out (12.74%!) during my last semester of undergraduate study which amounted to ~10% of my total student loan obligation in the end before capitalization; it was my only option since I didn't meet full-time student status that semester and didn't qualify for federal aid. This was the first loan I paid off and within 6 months of graduating, yet the interest paid on this single private loan accounted for 15% of the interest paid on the 7 other federal student loans that I paid off over the subsequent 4.5 years! It's crazy to think what that one private student loan would have cost me if I had paid it off over 5 years, let alone a 10-year period that federal student loans are amortized over. EDIT: > Also, shouldn't the government provide direct financial assistance to low income people being admitted to good colleges without needing them to ever pay back? Forgot to mention, this takes the form of academic grants[3]. Pell and SMART Grants are fairly common. [1] https://financialaid.stanford.edu/undergrad/how/student.html https://financialaid.stanford.edu/undergrad/how/student.html [2] https://www.ucop.edu/residency/residency-requirements.html https://www.ucop.edu/residency/residency-requirements.html [3] https://www2.ed.gov/programs/smart/index.html https://www2.ed.gov/programs/smart/index.html

goldcd 8y ago

I'm in the UK and went through tertiary education (Degree and Masters) at the point where we were switching towards the US model. I never paid for the education itself, but never received any funding to pay for my existence over those years. I was fortunate to have parents who could support me into my mid-twenties. The system has changed since. We've got people racking up debts they're never going to pay off for useless degrees (in UK there's threshold of income before you have to repay, and if you never reach it, it's written off). We've also got companies that used to recruit 'good' graduates (IT/accountancy behemoths) recruiting at school-exit age and offering a career to the good encumbered with debt. My takeaway thought is that tertiary education is no longer worthwhile for the sake of education. We're becoming much more utilitarian. Short term it makes sense, but long-term seems insane to not invest in people.