Dolphins9954
10-22-2012, 09:04 AM
College tuition costs have been skyrocketing and the more they go up, the more the government tries to help make college more affordable. Americans owe $1 trillion in student loans, even more than they owe in credit card debt. The federal government has been involved in student loans since 1958, either by guaranteeing loans made by private banks or by giving out loans themselves. Tuition rates have been increasing at about twice the rate of inflation (To view links or images in this forum your post count must be 10 or greater. You currently have 0 posts.), and still, proponents of federal student loans have yet to connect the dots.
Their intentions are good, but the government’s involvement is precisely what has resulted in the rise of tuition costs. Why do schools continue to increase their prices every year? Because they can. The government gives the schools whatever money they ask for, because “we must help everyone get a college degree.” If the government were to give everyone money to buy computers, the price of computers would also skyrocket.
If you support the government's involvement in student loans you are unknowingly supporting the transfer of wealth from the taxpayers to the schools. The schools are the real beneficiaries here, not the students. The students are accumulating a tremendous amount of debt for a service that is extremely over-priced, and in many cases, worthless.
For a while, private lenders were also greatly benefiting, as the government used to guarantee their loans. This meant lenders didn't have to care who they were lending money to and for what type of degree, because if the student defaulted on the loan, the government would be there to pay them. This is no longer the case. Since 2010, the Department of Education has been administering the federal student loans directly (To view links or images in this forum your post count must be 10 or greater. You currently have 0 posts.), and giving the money to the schools rather than to the bankers. They realized they were enriching the banks at the expense of the taxpayers. They somehow fail to realize they have not solved the problem. They are still enriching the schools at the expense of the taxpayers, and rather than make college education more affordable they are doing the opposite.
If you want any good to be as cheap as it can be, you need to allow for competition. Without government loans, the schools would be forced to lower their prices lest they lose customers. Today, they are being guaranteed customers regardless of how expensive they make their service.
It is ironic that those who advocate for the elimination of government student loans get accused of not caring about the students, when in fact it is the proponents of government loans that are ensuring that students pay the absolute highest price for their education............
To view links or images in this forum your post count must be 10 or greater. You currently have 0 posts.
Their intentions are good, but the government’s involvement is precisely what has resulted in the rise of tuition costs. Why do schools continue to increase their prices every year? Because they can. The government gives the schools whatever money they ask for, because “we must help everyone get a college degree.” If the government were to give everyone money to buy computers, the price of computers would also skyrocket.
If you support the government's involvement in student loans you are unknowingly supporting the transfer of wealth from the taxpayers to the schools. The schools are the real beneficiaries here, not the students. The students are accumulating a tremendous amount of debt for a service that is extremely over-priced, and in many cases, worthless.
For a while, private lenders were also greatly benefiting, as the government used to guarantee their loans. This meant lenders didn't have to care who they were lending money to and for what type of degree, because if the student defaulted on the loan, the government would be there to pay them. This is no longer the case. Since 2010, the Department of Education has been administering the federal student loans directly (To view links or images in this forum your post count must be 10 or greater. You currently have 0 posts.), and giving the money to the schools rather than to the bankers. They realized they were enriching the banks at the expense of the taxpayers. They somehow fail to realize they have not solved the problem. They are still enriching the schools at the expense of the taxpayers, and rather than make college education more affordable they are doing the opposite.
If you want any good to be as cheap as it can be, you need to allow for competition. Without government loans, the schools would be forced to lower their prices lest they lose customers. Today, they are being guaranteed customers regardless of how expensive they make their service.
It is ironic that those who advocate for the elimination of government student loans get accused of not caring about the students, when in fact it is the proponents of government loans that are ensuring that students pay the absolute highest price for their education............
To view links or images in this forum your post count must be 10 or greater. You currently have 0 posts.