Can someone smarter than me answer this question...

[SDS]

If every student was offered a $5000 per year student loan, wouldn't the cost of tuition just raise that much faster, such that the pre-loan tuition cost and the post-loan tuition cost would just be the same?

[Boomer860]

If every student was offered a $5000 per year student loan, wouldn't the cost of tuition just raise that much faster, such that the pre-loan tuition cost and the post-loan tuition cost would just be the same?

Don't burden these people with something they might have to think about

[scribo]

Likely. It is inflation, in a sense. The more money students have, the more the schools are going to charge.

[The Big Cat]

Don't burden these people with something they might have to think about

 

It appears YOU were the first one to opt out. Big surprise.

[Chef Jim]

Talk about a waste of taxpayer money. If someone put in $125 per YEAR into an account for their kid and invested it and got 8% average per year they'd have $5000. Personal responsibility ain't that hard.

[Boomer860]

It appears YOU were the first one to opt out. Big surprise.

You are not permitted to answer until you receive your next e mail from the Fraud . From now on he will do your thinking for you.

[The Big Cat]

You are not permitted to answer until you receive your next e mail from the Fraud . From now on he will do your thinking for you.

 

Well, I've already received five today.

[SDS]

Go crap in someone else's thread. I asked a serious question to those w/ a better understanding of economics than me.

[Boomer860]

Well, I've already received five today.

Thats all? Plenty of time left.

[Boomer860]

Go crap in someone else's thread. I asked a serious question to those w/ a better understanding of economics than me.

Your question answed itself. Answer yes.

[TPS]

If every student was offered a $5000 per year student loan, wouldn't the cost of tuition just raise that much faster, such that the pre-loan tuition cost and the post-loan tuition cost would just be the same?

Tuition costs are not driven by the amount a student can borrow, especially true for publicly funded institutions.

[YellowLinesandArmadillos]

Likely. It is inflation, in a sense. The more money students have, the more the schools are going to charge.

Pretty much and that is why college have been getting away with charging so much despite cutting the number of professors. They basically have been landlords and local land owners. GW, my alma mater was written up in the Post a few years back calling it "The Thing That Ate Foggy Bottom." Columbia has recently been doing the same to Harlem and the list goes on.

[Chef Jim]

Go crap in someone else's thread. I asked a serious question to those w/ a better understanding of economics than me.

 

Sorry, but when you gotta go, you gotta go.

[The Big Cat]

Pretty much and that is why college have been getting away with charging so much despite cutting the number of professors. They basically have been landlords and local land owners. GW, my alma mater was written up in the Post a few years back calling it "The Thing That Ate Foggy Bottom." Columbia has recently been doing the same to Harlem and the list goes on.

 

Can you explain whey tuition inflation has run rampant over the past 8 years? I'm not fishing for dubya bashing here, I'm legitimately curious.

[Chef Jim]

Can you explain whey tuition inflation has run rampant over the past 8 years? I'm not fishing for dubya bashing here, I'm legitimately curious.

 

Then why did you pick 8 years?

[bills_fan]

Go crap in someone else's thread. I asked a serious question to those w/ a better understanding of economics than me.

 

 

Yes.

 

I have heard that is one of the prime reasons education costs have risen so much in the last 20 years, far outpacing any measure of growth...cheap credit and access to student loans/grants. I'm not expert here, but with the pending contraction of credit, schools will have to bring down their costs.

[jjamie12]

If every student was offered a $5000 per year student loan, wouldn't the cost of tuition just raise that much faster, such that the pre-loan tuition cost and the post-loan tuition cost would just be the same?

I doubt that you could draw the same parallels with 'real world' Supply and Demand here because (in theory at least) most universities are not-for-profit.

 

I'm not so sure that your conclusion is wrong, though. Is the $5,000 a 'loan' or is it just free cash? It would seem to me that financial aid packages would just be reduced by the $5,000, rather than tuition going up. I think you'd still end up paying the same amount 'out of pocket' so-to-speak.

 

Edit: I'm probably not smarter than you, so take this with a grain of salt.

[GG]

Of course, OTOH the private schools with endowments bigger than many countries' economies have eliminated tuition altogether. Another reason to get Andrew into Hahvahd

[bills_fan]

Of course, OTOH the private schools with endowments bigger than many countries' economies have eliminated tuition altogether. Another reason to get Andrew into Hahvahd

 

 

Yes, because they had guns to their head. Most not-for-profits are required to spend a % (I think, 5%) a year of their funds. Educational institutions are exempt. They were threatened with the loss of their exemptions if they did not do something to reduce the student costs.

[The Big Cat]

Then why did you pick 8 years?

 

That's a fair question, and why I included the disclaimer about dubya bashing:

 

I picked 8 years because it incorporates the two years prior to and since mine own collegiate years.

 

I went to an INSANELY expensive school- voted third most expensive by one group's scale just a year ago. It's always been expensive, and it's always been expensive relative to other schools- but since my freshmen year (2002-2003) total package has risen from something like 32K to over 40- almost 33% increase. Since I never followed college costs before I was a student, I can't say that this is an unprecedented jump, but it seems that it's an UNSUSTAINABLE jump, and given present costs, one which couldn't have been constant over the years or else it would have been way over 32k in 2002.