(Score: 0) by Anonymous Coward on Monday May 30 2022, @03:01AM
by Anonymous Coward
on Monday May 30 2022, @03:01AM (#1248890)
it was more like 1980 when the huge tuition increases started.
And the huge tuition increases are the direct result of too much "student loan" money.
When students pay for their schooling with free money (and to an 18 year old, a student loan is "free money" -- few yet even begin to understand what a "student loan" means, they lose all desire to care one bit what their school of choice charges per year.
When the schools learn that the students are no longer price sensitive, they realize they can charge whatever they want, and the students will just pay (by pulling in more "free money") whatever the school asks, then the schools all start increasing their tuition at a rapid pace, in order to grab more of that "free money".
The sad part is that this very exact scenario is taught, in those same schools, in the Econ. department, when the economic theory gets brought out that pumping too many free dollars into a market leads to rampant price inflation. The student loans pumped loads of dollars into the university tuition market, and what was the result? Rampant inflation of the costs of college. Just exactly like the Econ. theory predicts.
(Score: 0) by Anonymous Coward on Monday May 30 2022, @03:01AM
And the huge tuition increases are the direct result of too much "student loan" money.
When students pay for their schooling with free money (and to an 18 year old, a student loan is "free money" -- few yet even begin to understand what a "student loan" means, they lose all desire to care one bit what their school of choice charges per year.
When the schools learn that the students are no longer price sensitive, they realize they can charge whatever they want, and the students will just pay (by pulling in more "free money") whatever the school asks, then the schools all start increasing their tuition at a rapid pace, in order to grab more of that "free money".
The sad part is that this very exact scenario is taught, in those same schools, in the Econ. department, when the economic theory gets brought out that pumping too many free dollars into a market leads to rampant price inflation. The student loans pumped loads of dollars into the university tuition market, and what was the result? Rampant inflation of the costs of college. Just exactly like the Econ. theory predicts.