Digging Out of Student Debt

I am not anti capitalism. The capitalism that many today practice is in line with "hit once become very rich" attitude. The notion is that, you make all the money you intend to make from very few customers (victims) that you have. What happened to charging a reasonable amount with the sense that the reasonable cost will attract more, and in due time, a decent profit will be made?

Would you agree that between the start of a program and graduation at many b & M schools, that tuition at the beginning does not double (or close to double) at graduation? Aside from students withdrawing from such schools when tuition keeps increasing astronomically every year, what options do students who depend on loans have to keeping their loan amount down?

Also, what expenses do DL universities have that their tuition have to be set very high because " it is what the market will bear"? Does it mean because other schools charge high tuition, that every school should follow suit and charge high tuition? Are all these not a result of the need to make very high profits at whatever costs even if those actions will threaten the entire system? Do we not see these presently, where many graduate program tuition rates are set at $20, 500 per year, which is what the federal loan system makes available to students yearly? Would one be honest if they say that every graduate program that charges $20,500 per year is really worth $20,500? or is it not the need to go after that money without regard to whether some of their products (their graduates and the degree received) would be capable of repaying the debt.

Until the sources of these problems are also looked at, american capitalism will continuously collapse and need to be rescued. In truth, capitalism itself is set up such that it crumbles from time to time, which is fancily called "economic down turn," after all, it is a system that is based on selling at hyper-inflated costs so that owners of the the business can make a lot of money.

Again, I am not anti-capitalism. What I'm saying is that today's "hit once and get rich" capitalism that is practiced by all, is why folks will continue to owe more than they can afford because they were sold stuff that is worth below 50% of the amount charged. Referring to high tuition as "what the market will bear," in the case of an online-only school with limited operating expenses simply means "charge as high as students can borrow" with the excuse that other schools are charging the same. Just like the sub-prime mortgage mess that the entire system is suffering from now, we will soon realize that this attitude simply doesn't work, and it is selfish. Sadly, those who benefit from these rip-offs are usually not affected because they "stole" enough to leave lavishly.

It is easy to blame a student who accepts high loan amount to pursue a worthless degree from a hyped-up "non-profit" institution. Do the school authorities not know that "their products" are not worth much?

 

Not sure what its like for kids today, but back when I had just graduated HS, kids who went to CC after high school were almost looked down upon as underachievers by those that went directly to a 4 year school. Don't know if that holds true today? I didn't care when I started attending my local CC since I was 30 at the time. But two students with the same degree, one attended the University for the entire 4 years, and the other transferred in from the CC and saved a ton of money. I'd say the transfer student wasn't a fool after all. I'm very glad I went the CC route then transferred for my undergrad.

 

And in my 30's I can appreciate that perspective, but I agree with you, when I was in high school (mid- to late-90's) the people who attended CC we're looked down upon. In hindsight I can completely see the benefit of the CC route, but at 18 I wanted the greek system (alright, I wanted the sorority girls), football games/tailgating, band parties, etc., etc.
All I am saying is that I remember what it was like when I was 18 and how I thought, I can empathize with the girl in the article if she just wanted that traditional college experience...but as I said, even when I was 18, I would have never considered going $92k in debt to attend the Univ. of Hartford. That's just stupid.

 

Exactly. I got accepted at several pretty good schools (and one Ivy) straight out of high school and didn't go because the cost was too much. I ended up going to a good state school (Michigan State, if anyone cares) before I had to drop out bc of family illness...and bounced around at various schools before consolidating at TESC and just finishing. Would I have loved to have gone to a very very good school? Well, yes, but I was planning on being a teacher and there was no way I could pay that much debt on a teacher's salary, and I knew it, even at 17.

The aid package the schools offered wasn't enough, my mom couldn't take out loans for me, and I wasn't willing to go like $70k+ in the hole (back then; it would be more now with tuition increases!) just to say I went somewhere.

 

Yeah, its different for a traditional student that has earned a scholarship or if someone is willing to foot the bill for a traditional student to get the traditional college experience. So many traditional students want the college experience and look at things like going to class and schoolwork as crimping their lifestyle while having their college experience. I know so many folks who flunked out of school at the traditional route because they either partied too much or were just irresponsible. I flunked out also, but luckily back then it was only my first semester taking two classes at CC, and it didn't cost my parents or myself much money or grief. I can't believe so many Universities look at the conflict of interests among students with the traditional college route and wonder why graduation rates are so low? Then nowadays with the ridiculous cost of college, they are still following and promoting this model.

 

Don't move to Boston, you couldn't get a studio apartment with a kitchenette until you came up with at least two and a half times that here.