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There is a simple solution for this (even if your argument makes sense) and that is that the government also sets the legal maximum tuition fees. In the Nether

by wybo 14y ago

There is a simple solution for this (even if your argument makes sense) and that is that the government also sets the legal maximum tuition fees. In the Netherlands the government subsidizes universities per student they take on, provides a monthly stipend to students (from about $400 to $800 depending on whether your parents income, with the possibility to borrow more) and sets yearly home-student tuition-fees (at $2200). And still Dutch universities perform quite well in the world-rankings (all 14 roughly between spot 40 and 200). Admittedly this is made easier by the fact that the Netherlands does not have any private universities (of any fame and influence), and the fact that things have been organized like this for a long time now... After having spent 5 years in university, having a debt of even $40.000 is considered a lot here.

notlisted 14y ago
Precies! Weet je ook waar ik vandaan kom :-)
liber8 14y ago
This is not a simple solution. This is yet another government solution to a government-created problem. The "solution" breeds more problems of its own, which will in turn require more "simple" government solutions. If you need an example of this, take a look at our federal tax code. The simple solution is to stop subsidizing loans to any student for any degree.
- JPKab 14y ago
  Can you clarify your statement? Would you agree with subsidizing loans to good students, with impoverished backgrounds, choosing a degree which is in high demand in the marketplace(just an example)? I, for one, am apalled at the gov't subsidizing the huge number of art, fashion, music degrees that they do. I would be curious to see the default rates on these sorts of loans.
  - liber8 14y ago
    No. If the degree is in high demand, there’s no need to subsidize it. Either banks will lend based on the student’s projected ability to repay the loan or employers (who need people with the skill the student will be learning) will subsidize the student’s education. People like to believe basic economic principles like supply and demand don't apply to things like education or healthcare, even when the evidence stares them in the face. (See millions of unemployable liberal arts graduates and the voracious demand for computer science majors.) re student loan default data, this is very difficult to determine. First, many subsidized loans are being deferred, and thus not counted as "in default", even though they are not being repaid. The only data I can find quickly on the web only goes through 2009, which is obviously going to be dramatically lower than the default rate today.

by wybo 14y ago

notlisted 14y ago

Precies! Weet je ook waar ik vandaan kom :-)

liber8 14y ago

This is not a simple solution. This is yet another government solution to a government-created problem. The "solution" breeds more problems of its own, which will in turn require more "simple" government solutions. If you need an example of this, take a look at our federal tax code. The simple solution is to stop subsidizing loans to any student for any degree.

JPKab 14y ago
Can you clarify your statement? Would you agree with subsidizing loans to good students, with impoverished backgrounds, choosing a degree which is in high demand in the marketplace(just an example)? I, for one, am apalled at the gov't subsidizing the huge number of art, fashion, music degrees that they do. I would be curious to see the default rates on these sorts of loans.
- liber8 14y ago
  No. If the degree is in high demand, there’s no need to subsidize it. Either banks will lend based on the student’s projected ability to repay the loan or employers (who need people with the skill the student will be learning) will subsidize the student’s education. People like to believe basic economic principles like supply and demand don't apply to things like education or healthcare, even when the evidence stares them in the face. (See millions of unemployable liberal arts graduates and the voracious demand for computer science majors.) re student loan default data, this is very difficult to determine. First, many subsidized loans are being deferred, and thus not counted as "in default", even though they are not being repaid. The only data I can find quickly on the web only goes through 2009, which is obviously going to be dramatically lower than the default rate today.