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The government not only incentivizes bad loans, they also exempt college debt from the bankruptcy process. And these are loans people are supposed to agree to
by skohan 6y ago
The government not only incentivizes bad loans, they also exempt college debt from the bankruptcy process. And these are loans people are supposed to agree to when they are 17-18 years old. It's an insane system if you ask me.
As a side-note, lately I've been curious about what's actually been driving the cost of higher education. I know it's often cited as "administrative costs", but what does that actually mean? Where does the money actually go?
- vkou 6y ago> As a side-note, lately I've been curious about what's actually been driving the cost of higher education. I know it's often cited as "administrative costs", but what does that actually mean? Where does the money actually go? If you're asking about tuition? A few places. Marketing, sports stadiums, student services (Counselling, mental health, etc), bureaucratic waste (Middle managers overseeing operations people), overbuilt facilities that serve no pedagogical value (Stained glass windows and large, pretty university grounds don't maintain themselves). But that's just the half of it. In addition to tuition, most universities force you to pay for room and board, by living on-campus. Those fees go into paying for overpriced, poor-quality catered food, and overpriced dorm rooms.
- ReallyAnonymous 6y agoGF paid 18K on student loans last year, but only 2500 deductible on her taxes. I had 28k in margin interest last year, 100% deductible. US is greatly skewed to the rich