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This is my problem with canceling student debt, and the government offering low-interest loans to students. Yes, in a vacuum, it makes total sense. If you loan

This is my problem with canceling student debt, and the government offering low-interest loans to students. Yes, in a vacuum, it makes total sense. If you loan a bit of money now, a student becomes more educated, earns more, and pays more in taxes in the long run. It's a win win! But the problem is that once you add that system, all the colleges in the country just start raising tuition to account for it, which is IMO a huge part of why they've gotten so expensive. More expensive college means more people need loans and it spirals from there. I wish there was a clean solution, but there isn't.

MisterBastahrd 3y ago
That's when you start treating public colleges like insurance companies and put a hard cap on the money spent on administrative costs.
- Night_Thastus 3y ago
  That system has its own flaws. How can government truly estimate the cost of administration? All costs vary from area-to-area, and some areas will naturally cost more. And even if you somehow did that part perfectly, the money can be shuffled around and reorganized so it looks like the college is spending more/needs more income than it really does.
  - johnnyanmac 3y ago
    >How can government truly estimate the cost of administration? Audits? we have a federal and state secretary of Education who should have resources to find this stuff out. The answer to this is that colleges appeal to get more resources if they need it, and they need to prove those extra funds are in the interest of most/all students. Governments can still give grants and whatnot, so the hard cap is just a cap on one source of income. >the money can be shuffled around and reorganized so it looks like the college is spending more/needs more income than it really does. yeah, just like any other corporation. Exploits and tax evasion. This is the everyday life of auditors. But colleges aren't exactly good at hiding what their overinflated administration is doing to begin with.

MisterBastahrd 3y ago

That's when you start treating public colleges like insurance companies and put a hard cap on the money spent on administrative costs.

Night_Thastus 3y ago
That system has its own flaws. How can government truly estimate the cost of administration? All costs vary from area-to-area, and some areas will naturally cost more. And even if you somehow did that part perfectly, the money can be shuffled around and reorganized so it looks like the college is spending more/needs more income than it really does.
- johnnyanmac 3y ago
  >How can government truly estimate the cost of administration? Audits? we have a federal and state secretary of Education who should have resources to find this stuff out. The answer to this is that colleges appeal to get more resources if they need it, and they need to prove those extra funds are in the interest of most/all students. Governments can still give grants and whatnot, so the hard cap is just a cap on one source of income. >the money can be shuffled around and reorganized so it looks like the college is spending more/needs more income than it really does. yeah, just like any other corporation. Exploits and tax evasion. This is the everyday life of auditors. But colleges aren't exactly good at hiding what their overinflated administration is doing to begin with.