4 ms·

Let's be honest. US colleges did this thing where when they grew they also just grew costs without growing delivery. The problem with costs is they're sticky do

Let's be honest. US colleges did this thing where when they grew they also just grew costs without growing delivery. The problem with costs is they're sticky downward. This, of course, is a good thing that these colleges are closing. Can you imagine a place teaching economics when it cannot apply it to itself?

swaits 7y ago
Fueled by cheap, even free, money. Defense, housing, education, healthcare. The market does work.
- ngold 7y ago
  A captured loan monopoly that puts kids in a non bankruptcy position since 2005. In 15 years, close to 2 trillion in debt.
- JMTQp8lwXL 7y ago
  American universities are increasingly depending upon foreign enrollment as those students will pay full price. For Americans, the sticker price is just a starting point. There will be grants and haircuts that conveniently bring the cost down to the maximum amount of government loans that student can receive.
thrower123 7y ago
It's so comically analogous to the startup that hits a big investment round and goes on a hiring spree, signing a long-term lease on a swanky office, and then the profit never comes.
cwperkins 7y ago
My thoughts exactly, I am hoping that these closures start leading to lower costs. If the price of education outpaced wage growth for a decade then we need a big correction to get back to where we used to be.
IggleSniggle 7y ago
I agree with this, but the economics do have some unique pressures. Education doesn't really get more efficient relative to the society that it is in. You're always going to get the best result with small class sizes and time-intensive one-to-one instruction. If anything, it generally gets less efficient as you need an ever greater supply of education as prerequisite knowledge increases as the edges to make forward progress. Especially given this situation, tho, you'd expect institutions to do everything they could to keep the auxiliary costs down. Those fancy dorm rooms and rec centers sell the college more than an education you can't see with your eyes, tho.

swaits 7y ago

Fueled by cheap, even free, money. Defense, housing, education, healthcare. The market does work.

ngold 7y ago
A captured loan monopoly that puts kids in a non bankruptcy position since 2005. In 15 years, close to 2 trillion in debt.
JMTQp8lwXL 7y ago
American universities are increasingly depending upon foreign enrollment as those students will pay full price. For Americans, the sticker price is just a starting point. There will be grants and haircuts that conveniently bring the cost down to the maximum amount of government loans that student can receive.

thrower123 7y ago

It's so comically analogous to the startup that hits a big investment round and goes on a hiring spree, signing a long-term lease on a swanky office, and then the profit never comes.

cwperkins 7y ago

My thoughts exactly, I am hoping that these closures start leading to lower costs. If the price of education outpaced wage growth for a decade then we need a big correction to get back to where we used to be.

IggleSniggle 7y ago

I agree with this, but the economics do have some unique pressures. Education doesn't really get more efficient relative to the society that it is in. You're always going to get the best result with small class sizes and time-intensive one-to-one instruction. If anything, it generally gets less efficient as you need an ever greater supply of education as prerequisite knowledge increases as the edges to make forward progress. Especially given this situation, tho, you'd expect institutions to do everything they could to keep the auxiliary costs down. Those fancy dorm rooms and rec centers sell the college more than an education you can't see with your eyes, tho.