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The Shocking Increase Of College Tuition By State

Tyler Durden's picture




 

It is common knowledge that in the hierarchy of bubbles, not even the stock market comes close to the student loan bubble. If it isn't, one glance at the chart below which shows the exponential surge in Federal student debt starting just after the great financial crisis, should put the problem in its context.

And while we have previously reported that a shocking amount of the loan proceeds are used to fund anything but tuition payments, a major portion of the funding does manage to find itself to its intended recipient: paying the college tuition bill.

Which means that with student debt being so easily accessible anyone can use (and abuse), it gives colleges ample room to hike tuition as much as they see fit: after all students are merely a pass-through vehicle (even if one which for the most part represents non-dischargeable "collateral") designed to get funding from point A, the Federal Government to point B, the college treasury account.

It should thus come as no surprise that in a world in which colleges can hike tuition by any amount they choose, and promptly be paid courtesy of the federal government, and with endless amounts of propaganda whispering every day in the ears of impressionable potential students the only way they can get a well-paying job is to have a college diploma (see San Francisco Fed's latest paper confirming just this) there is no shortage of applicants willing to take on any amount of debt to make sure this cycle continues, that soaring tuition costs are one of the few items not even the BLS can hedonically adjust to appear disinflationary.

End result: tutitions have literally expoded across the country in both public and private colleges.

But while we know what the answer looks like at the Federal level, the question arises just how does this price shock look at the state level?

For the answer we go to the annual report by the Center on Budget and Policy Priorities, which periodically releases a report covering just this topic.

The answer, in a nutshell, is presented in the chart below which shows the state by state, inflation-adjusted breakdown how much the average tutition has changed in the period between 2008 and 2014.

Our condolences to students in Arizona, who have seen a near doubling of their college tuition in just 5 short years.

In fact our condolences to students in the six states where tuition have risen by more than 60%, in the ten states where it has increased by more than 40%, and in the 29, or more than half of all states, where college tuitions have risen by more than 10 times the Fed's inflation target of 2% per year.

Some of the other findings in the report:

  • Since the 2007-08 school year, average annual published tuition has risen by $1,936 nationally, or 28 percent, above the rate of inflation (in non-inflation-adjusted terms, average tuition is up $2,702).
  • In Arizona, the state with the greatest tuition increases since the recession, tuition has risen 80.6 percent or $4,493 per student after inflation.

But in addition to the "supply-side" easy credit that enables college Treasurers to demand whatever cost they want, is there any other reason for this relentless price increase? As it turns out the answers is year, and it goes back to the infamous Meredith Whitney prediction that across the US, various municipalities and states are insolvent. Because as it turns out, the main reason why so many state colleges have, at least according to the CBPP, boosted costs is to make up for the near complete collapse in state funding to higher education.

This is how the CBPP report frames the issue:

Deep state funding cuts have major consequences for public colleges and universities. States (and to a lesser extent localities) provide 53 percent of the revenue that can be used to support instruction at these schools.3 When this funding is cut, colleges and universities generally must either cut educational or other services, raise tuition to cover the gap, or both.

Indeed, since the recession, higher education institutions have:

  • Increased tuition. Public colleges and universities across the country have increased tuition to compensate for declining state funding and rising costs. Annual published tuition at four-year public colleges has risen by $1,936, or 28 percent, since the 2007-08 school year, after adjusting for inflation.4 In Arizona, published tuition at four-year schools is up more than 80 percent, while in two other states — Florida and Georgia — published tuition is up more than 66 percent.
  • These sharp increases in tuition have accelerated longer-term trends of reducing college affordability and shifting costs from states to students. Over the last 20 years, the price of attending a four-year public college or university has grown significantly faster than the median income.5 Federal student aid and tax credits have risen, but on average they have fallen short of covering the tuition increases.
  • Cut spending, often in ways that may diminish access and quality and jeopardize outcomes. Tuition increases have compensated for only part of the revenue loss resulting from state funding cuts. Public colleges and universities have cut faculty positions, eliminated course offerings, closed campuses, shut computer labs, and reduced library services, among other cuts. For example, since 2008, the University of North Carolina at Chapel Hill has eliminated 493 positions, cut 16,000 course seats, increased class sizes, cut its centrally supported computer labs from seven to three, and eliminated two distance education centers.

A large and growing share of future jobs will require college-educated workers.7 Sufficient funding for higher education to keep tuition affordable and quality high at public colleges and universities, and to provide financial aid to those students who need it most, would help states to develop the skilled and diverse workforce they will need to compete for these jobs.

Such funding is unlikely to occur, however, unless policymakers make sound tax and budget decisions in the coming years. While some states are experiencing greater-than-anticipated revenue growth due to an economy that is slowly returning to normal, state tax revenues are barely above pre-recession levels, after adjusting for inflation.8 To bring higher education back to pre-recession levels, many states may need to supplement that revenue growth with new revenue to fully make up for years of severe cuts.

But just as states have an opportunity to reinvest, lawmakers in many states are jeopardizing it by entertaining tax cuts their states and citizens can ill-afford. For example, Florida - where higher education funding is 30 percent below 2007 levels and tuition at four-year schools is 66 percent higher - is cutting taxes by $400 million in the current 2014 legislative session. Other states are also considering damaging changes to their tax codes that would make it very difficult to reinvest in higher education.

* * *

In other words, to mask their insolvency, funding for colleges has been the first outlay that states across the US were forced to trim: and the more insolvent any given state, the greater the offset that was passed through to any given state's colleges.

This is indeed confirmed by the chart below, which shows the change in state spending per student over the same time period.

And this is where students, and their massive debt loads have come in. Because as it turns out, instead of having the state fund itself and be able to return college funding to pre-crisis levels, that responsibility is now offloaded to the student.

From the report:

During and immediately following recessions, state and local funding for higher education has tended to plummet, while tuition has tended to spike. During periods of economic growth, funding has tended to largely recover while tuition stabilizes at a higher level as share of total higher educational funding.

 

This trend has meant that over time students have assumed much greater responsibility for paying for public higher education. In 1988, public colleges and universities received 3.2 times as much in revenue from state and local governments as they did from students. They now receive about 1.1 times as much from states and localities as from students.

 

 

Nearly every state has shifted costs to students over the last 25 years — with the most drastic shift occurring since the onset of the recession. In 1988, average tuition amounts were larger than per-student state expenditures in only two states, New Hampshire and Vermont. By 2008, that number had grown to ten states. Today, tuition revenue now outweighs government funding for higher education in 23 states with six states — New Hampshire, Vermont, Delaware, Colorado, Rhode Island, Michigan, and Pennsylvania — asking students and families to shoulder higher education costs by a ratio of at least 2-to-1.

The bottom line is that in order to perpetuate the myth of state solvency, the obligation to provide the funding needed for any one student's education has been transferred from the state itself to the student.

Is this a "fair" cost-shifting arrangement?

It depends on the perspective of the payor, and of course, the obligor. As Janet Yellen herself pointed out today, the fact that students are being saddled with record amounts of debt is regarded by the Fed as of the primary reason why the housing recovery has not materialized, and why household formation has collapsed and is far below historical (and expected) levels (and has indirectly led to such aberrations as the US "renter nation", and Wall Street firms such as Blackstone becoming the largest landlord in the US).

Some of the other side effects of this perverse funding shift, from the CPBB:

Rapidly rising tuition at a time of weak or declining income growth has a number of damaging consequences for families, students, and the national economy.

 

Students are taking on more debt. Student debt levels have swelled since the start of the recession. Collectively, across all institutional sectors, students held $1.08 trillion in student debt — eclipsing both car loans and credit card debt — by the fourth quarter of 2013. Between the 2007-08 and the 2011-12 school years, the median amount of debt incurred by the average bachelor’s degree recipient with loans at a public four-year institution grew from $11,900 to $14,300 (in 2012 dollars), an inflation-adjusted increase of $2,400, or 20 percent. The average level of debt incurred had grown from $11,200 to $11,900, an increase of about 6.3 percent, over the previous eight years.

 

Tuition costs are deterring some students from enrolling in college. While the recession encouraged many students to enroll in higher education, the large tuition increases of the past few years may have prevented further enrollment gains. Rapidly rising tuition makes it less likely that students will attend college. Research has consistently found that college price increases result in declining enrollment.35 While many universities and the federal government provide financial aid to help students bear the price, research suggests that both the advertised tuition cost and the actual price net of aid affect whether students go to college; in other words, a high sticker price can dissuade students from enrolling even if the net price doesn’t rise.

 

Tuition increases are likely deterring low-income students, in particular, from enrolling. Research further suggests that college cost increases have the biggest impact on students from low-income families. For example, a 1995 study by Harvard University researcher Thomas Kane concluded that states that had the largest tuition increases during the 1980’s and early 1990’s “saw the greatest widening of the gaps in enrollment between high- and low-income youth.

 

Tuition increases may be pushing lower-income students toward less-selective institutions, reducing their future earnings. Perhaps just as important as a student’s decision to enroll in higher education is the choice of which college to attend. Even here, research indicates financial constraints and concerns about cost push lower-income students to narrow their list of potential schools and ultimately enroll in less-selective institutions. In a 2013 study, economists Eleanor Dillon and Jeffrey Smith found evidence that some high-achieving low-income students are more likely to “undermatch” in their college choice in part due to financial constraints

There are many more unintended consequences of this cost shift, all of which are succinctly explained in the full study which can be found here: States Are Still Funding Higher Education Below Pre-Recession Levels.

But while questions of fairness are largely meaningless in the New Normal, especially once the Obama administration is done with them, one thing is certain: this arrangement is completely unsustainable.

It goes without saying that anything that is unsustainable eventually ends.

In the meantime the biggest loser is... you, dear students.

 

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Wed, 05/07/2014 - 20:03 | 4737899 A Nanny Moose
A Nanny Moose's picture

Arizona? Degrees in binge drinking?

Wed, 05/07/2014 - 20:06 | 4737914 Arius
Arius's picture

they got money in Arizona ... otherwise the prices would be down

Wed, 05/07/2014 - 20:16 | 4737939 CH1
CH1's picture

Why insane increases?

Because they can!

The authorized ones have the magic pieces of paper. The suckers believe they control their destiny.

So, the suckers will do anything to get the magic paper.

Save for 20 years? No problem.

Take unpayable (or dischargeable) loans? Certainly.

Mortgage their souls? Of course!

Wed, 05/07/2014 - 20:18 | 4737965 Redneck Hippy
Redneck Hippy's picture

I can tell you from personal experience, the price rise has nothing to do with the salaries of professors.

Wed, 05/07/2014 - 20:44 | 4738047 Alberich
Alberich's picture

If anything, spending on faculty is down as part-timers take over from full-timers, especially at the lower end of the market.

Wed, 05/07/2014 - 20:50 | 4738068 Beam Me Up Scotty
Beam Me Up Scotty's picture

Professors teach less, and are paid more. Thank god for TA's. They sure as he'll aren't making minimum wage. I bet the average college prof is in the top "20%" of wage earners easily. And don't come with this " I only make $50k per year" baloney. Include all of your earnings, your fat pension and healthcare benefits. And every other hidden perk you get, that you don't include in your salary.

Wed, 05/07/2014 - 20:53 | 4738091 James_Cole
James_Cole's picture

The important thing about post secondary education in the US is that it's for the rich only. Not rich enough for college? Good news! The world still needs ditch diggers. 

Or move to Germany, still have near-free post secondary ed. 

Wed, 05/07/2014 - 21:49 | 4738264 SafelyGraze
SafelyGraze's picture

this article overlooks the other factors driving up tuitions

- administrators now outnumber tenured faculty, and draw higher salaries

- those salaries are based, in part, on "overhead" generated by federal grants and contracts (a 50% tax levied by the university on the work performed)

- universities are competing with each other to build the newest and shiniest dorms and recreation centers and dining halls and aquatic centers and golf courses, incurring hundreds of millions or billions in debt

- that debt rivals the amount of student loan debt, but is not included in any of these discussions or aggregate measures

 

Wed, 05/07/2014 - 22:25 | 4738367 MiguelitoRaton
MiguelitoRaton's picture

Largest increases: (1) warm weather, (2) loose acceptance crieteria, (3)...parties!

Wed, 05/07/2014 - 22:41 | 4738413 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

College isn't about education. If an inquiring mind wants to know anything they may consult the Internet free of charge. College is just another obsolete institution which hasn't been cleared from the system thanks to socialist policies.

BTW, if the states can find a way to pay 13 years of propaganda for every student, what the hell is 4 more years?

Wed, 05/07/2014 - 22:45 | 4738444 EscapingProgress
EscapingProgress's picture

BAIL ME OUT OBAMA!!!

Wed, 05/07/2014 - 23:35 | 4738591 Quus Ant
Quus Ant's picture

It's the end of the world as we knew it.  And I feel surprisingly alright.

Thu, 05/08/2014 - 05:41 | 4738939 negative rates
negative rates's picture

All this at a time when education in this country sucks too.

Thu, 05/08/2014 - 08:22 | 4739196 SumTing Wong
SumTing Wong's picture

I can tell you from personal experience that the money is NOT being spent on new laboratory facilities, not on professors, and not on things that will educate students. Instead, the football team got a new stadium and new uniforms, the dorms now have a Subway and a frozen yogurt place, the gym has all new nautilus equipment, and they planted more flowers. We live in an entertainment society, so colleges are pandering to what it takes to bring in more students. 

Thu, 05/08/2014 - 00:14 | 4738664 Never One Roach
Never One Roach's picture

But, yeah, like, ya know...it's money well spent, Dude:

 

Results In short, the tests showed U.S. fourth-graders performing poorly, middle school students worse, and high school students are unable to compete. By the same criteria used to say we were "average" in elementary school, "we appear to be "near the bottom" at the high school level. People have a tendency to think this picture is  bleak but it doesn't apply to their own school. Chances are, even if your school compares well in SAT scores, it will still be a lightweight on an international scale.

 

http://4brevard.com/choice/international-test-scores.htm

Thu, 05/08/2014 - 01:22 | 4738751 IndyPat
IndyPat's picture

That's simply not fair.
It also completely ignores the gains made in student self esteem.

Big fuckin /s

Thu, 05/08/2014 - 13:33 | 4740340 sethstorm
sethstorm's picture

Only if you don't actually control for admissions criteria, which PISA and TIMSS do not do.

 

Thu, 05/08/2014 - 02:16 | 4738799 ghostfaceinvestah
ghostfaceinvestah's picture

Did you hear the Q&A with Yellen today?  Some Senator asked her what advice she would give to the parent of a 3 year old today, in regards to ensuring future economic success.  She said "make sure they get a college education, because the numbers show the salary difference between college grads and high school grads is huge" (I am paraphrasing of course).

Typical stupid Fed thinking.  So, at the limit Janet, what if everyone was a college grad (or even a large percentage of people were)?  We would get what we have today - college grads working as baristas at Starbucks.

How about advice like "find something you love and become the best you can at it" (I think Steve Jobs may have said something similar once)?  Or even "never live beyond your means"? 

But no, of course the Fed is going to promote a path that almost always requires taking on unsustainable debt.

Thu, 05/08/2014 - 03:59 | 4738868 monkeyshine
monkeyshine's picture

That's right. And if you want the experience of university life to "mature" and "grow experientially", you won't get into student housing but almost every major university has plenty of private housing nearby. Move into one that caters to students. Maybe even take a student roomate and get a part time job to pay the rent. Then get the course guide, find the courses you like, and go sit in. You likely won't get into the senior level courses because those are usually small and the prof will notice you are not enrolled. (but hey, its hard to imagine a prof kicking someone who is serious out of class if you were honest and forthright). But some of the large courses for freshman and sophs have 500-1000 students. They don't take attendance. Sit in and listen to the lectures. Get the handouts.  Download the course material. Also, eat in the university cafeterias. Meet people on campus. Go to parties. You will get the "socializing" and in fact you will mature faster because you have to work at it.  *(afterthought, I wonder if the campuses are harder to get onto nowadays?  As of a few years ago they were pretty wide open during the daytime. )

I am not the typical employer, but I'd rather hire someone with 4 years of experience than a brand new BA degree. 

Thu, 05/08/2014 - 15:05 | 4740744 daveO
daveO's picture

The internet has made the first 13 yrs obsolete, too. 

Fri, 05/09/2014 - 00:06 | 4742363 sun tzu
sun tzu's picture

Only for those willing to use it to learn instead of posting stupid pictures and videos on facebook, twitter or other stupid social media or watch porn all day. 

TV could have been used for education too, but it's mostly used for mindless entertainment.

Thu, 05/08/2014 - 01:32 | 4738763 mccvilb
mccvilb's picture

I-i-i-i-t-t-t-s-s TIME-E-E! For NFL Draft Night! This is why we go to college - to mold and shape concussed minds for the future.

Thu, 05/08/2014 - 07:59 | 4739129 Agstacker
Agstacker's picture

Or move to North Dakota, the school fund money from the Bakken is doing quite well.

Fri, 05/09/2014 - 00:04 | 4742356 sun tzu
sun tzu's picture

Free college? That's nice of the faculty and administrators to work for free. Do the buildings sprout up from the ground by themselves?

It's strange how I was able to get a graduate degree as one of 5 children raised by a single mother. I didn't know we were rich living in that run down 3 bedroom apartment.

Wed, 05/07/2014 - 20:58 | 4738115 ACP
ACP's picture

Just looked up one of my professors, who is now head of her department, on this state salary website:

http://www.sacbee.com/statepay/#req=employee%2Ftop%2Fyear%3D2013

Went from $160k as a tenured professor to $240k as department head. So, if anyone thinks salaries aren't the problem, um, yeah, they are.

Wed, 05/07/2014 - 21:02 | 4738128 James_Cole
James_Cole's picture

A little bit..

http://www.bloomberg.com/news/2012-11-14/bureaucrats-paid-250-000-feed-o...

In the past decade, the number of administrative employees jumped 54 percent, almost eight times the growth of tenured and tenure-track faculty.

U.S. universities employed more than 230,000 administrators in 2009, up 60 percent from 1993, or 10 times the rate of growth of the tenured faculty

^ there's your hockey stick

Wed, 05/07/2014 - 21:12 | 4738157 Beam Me Up Scotty
Beam Me Up Scotty's picture

And so, no one can figure this out and fix it?  Everyone who produces NOTHING thinks their job is the most important one on the planet and we can't live without it.  But 20 years ago, we did just fine, with 60% less administrators.  How did we EVER manage?

Wed, 05/07/2014 - 22:40 | 4738427 Stuck on Zero
Stuck on Zero's picture

You need administrators to comply with all the requirements of the other administrators.  Students and professors are not needed in this equation.

 

Wed, 05/07/2014 - 23:15 | 4738534 natty light
natty light's picture

My high school physics teacher had a sign in his lab classroom that said:

Dept. of Redundancy Dept.

Thu, 05/08/2014 - 02:18 | 4738805 ghostfaceinvestah
ghostfaceinvestah's picture

Nothing a crisis won't fix.  If these bloated institutions faced a decline in enrollments, you bet your ass they would start axing those administrators in droves.

Wed, 05/07/2014 - 21:04 | 4738136 Beam Me Up Scotty
Beam Me Up Scotty's picture

Exactly.  And how much time is she really in the classroom anymore?  Instead you get some hard to understand person from a foreign country filling in.  Pathetic!!

Wed, 05/07/2014 - 21:07 | 4738145 ACP
ACP's picture

Just for shits and giggles, I was looking up another professor, and I got this interesting result for the same name (name left out):

CSU Fresno Librarian $93.4k
Wed, 05/07/2014 - 21:15 | 4738164 Beam Me Up Scotty
Beam Me Up Scotty's picture

ACP, this tells me the whole "if you and your spouse make $250k per year you are in the top 1%" meme is yet another lie!  All kinds of people make well over 100k per year, yet they lie to everyone and make them feel like the are in the top 10% or the top 1% when they are probably really no better off than the top 50%.  More lies and propaganda to make you feel sorry for someone else and submit to higher taxation.

Wed, 05/07/2014 - 21:27 | 4738179 ACP
ACP's picture

Yeah, pretty much.

 

You wanna get really pissed off now?

Check out this motherfucker, I'll leave his name in because it's listed on the welcome page in the "TOP 10 HIGHEST PAID" list:

http://www.sacbee.com/statepay/#req=employment%2Flist%2Fsafename%3Dchris...

How the fucking fuckity fuck does your salary go from $18.5k in 2011 to $76k in 2012 to $536k in 2013?

WHAT THE FUCK??????????????

 

Edit: Here's another beaut: Correction and Rehabilitation   Parole Agent III Adult Parole   $259k

Wed, 05/07/2014 - 22:37 | 4738416 James_Cole
James_Cole's picture

ACP, apparently by getting fired from your job:

http://www.montereyherald.com/ci_13845817

A state appeals board has ordered reinstatement of eight correctional officers who were fired from Salinas Valley State Prison in the wake of revelations about a rogue gang of guards known as the Green Wall.

Ordered reinstated with back pay were guards James Benefield, Fernando Chavez, Christopher Corotan, Walter Faulkner, Derrick Mackinga and Kevin Rawhoof.

The group was exposed in 2001 by former correctional officer D.J. Vodicka, who was targeted for his role as a whistleblower and later testified before the senate committee.

"This is just an absolute travesty. This sends a clear message" to both honest and dishonest correctional officers, said Caden, now a Sacramento-area attorney. "If you commit a crime under the color of authority and stick together and keep your mouths shut, no one can do anything."

Wed, 05/07/2014 - 23:22 | 4738557 ACP
ACP's picture

Good digging!

Wed, 05/07/2014 - 21:12 | 4738156 seek
seek's picture

This is really state-dependent. Each state has unique reasons for their problems.

For most, it's cuts in funding. In states like AZ, it's due to lower tax revenue. A month ago when we were discussing Michigan's fucked up tuition, it turned out that the funding cuts were from funds being redirected to teacher pension funds. I'm sure in other states it's out of control construction costs, or administration costs. And a few, professor's salaries, but I doubt that's much compared to administator's numbers or salaries.

Fri, 05/09/2014 - 00:08 | 4742364 sun tzu
sun tzu's picture

Average salary for a tenured professor is $99K. They probably work 20 hours a week if that much.

Wed, 05/07/2014 - 23:23 | 4738564 johnconnor
johnconnor's picture

it has to do with the price of football coaches... how much were football coaches making 20 years ago vs now CPI adjusted? they are millionaires now and they are public employees!

Wed, 05/07/2014 - 23:57 | 4738631 Babaloo
Babaloo's picture

They're public employees in name only.

They get paid out of ticket and tv revenues, shoe contracts, alumni funds, etc. your tax money doesn't go to pay football coaches.

Thu, 05/08/2014 - 00:21 | 4738674 Never One Roach
Never One Roach's picture

Texas to pay $9.375 million for Charlie Strong in 2014

 

The University of Texas' new football coach, Charlie Strong, will be paid $5 million for the 2014 season and the university will pay Strong's $4.375 million buyout to Louisville, according to financial terms approved Monday by the university system's board of regents.

 

http://www.usatoday.com/story/sports/ncaaf/2014/01/13/charlie-strong-con...

 

Holy Shit!

 

 

Fri, 05/09/2014 - 00:13 | 4742373 sun tzu
sun tzu's picture

Yeah but the UT Longhorns football team brought in net income of $109 million for the university in 2013. Big time football and basketball programs bring in lots of revenue for the colleges and some are more profitable than pro teams. I'm not defending the coach's salaries, but it's misleading to imply that tuition is going up because of football and basketball programs. 

Thu, 05/08/2014 - 14:36 | 4740580 Monty Burns
Monty Burns's picture

the price rise has nothing to do with the salaries of professors.

 

Maybe not.  But someone has to pay for all those Diversity Managers.

Fri, 05/09/2014 - 00:15 | 4742375 sun tzu
sun tzu's picture

Not to mention all of those ethnic and gender studies programs that load the suckers up on debt with no job prospects. What employer in their right mind would want to hire a bitter employee with a chip on his/her shoulder that will sue over the drop of a hat?

Wed, 05/07/2014 - 20:21 | 4737973 TruthInSunshine
TruthInSunshine's picture

When MAYBE 1/2 of students will pay their loans back, either partially or at all, to quote Billary, "[w]hat difference does it make??!!!"

Stuffing the eCONomy with subprime Auto Loans & College Loan Debt
(a full 1/3 of which is currently in default or otherwise not paying/performing), bitchez! It's the NEW NORMAL IN TIMES OF BROKEN MARKETS THANKS TO INSANE CENTRAL BANK MONETARY POLICY.

NOONE COULD'VE SEEN IT COMING!
WHAT COULD POSSIBLY GO WRONG.

CBS NEWS
May 6, 2014, 7:43 PM

Americans seek relief from student loan debt

http://www.cbsnews.com/news/americans-seek-relief-from-student-loan-debt/

"Student loans have become an economic albatross that has many Americans begging for relief...

In the past 10 years, student debt has tripled in the United States, from $364 billion to more than $1.2 trillion. That's more than Americans owe on credit cards or auto lines...

...Thirty percent of federal student loans are in default, forbearance or deferment." (THAT IS 1 IN 3, FOR THOSE KEEPING SCORE AT HOME).


*Bonus material:

 

April 10, 2014
Financial Times 

http://www.responsiblelending.org/tools-resources/headlines/american-sub...

AMERICAN SUBPRIME LENDING IS BACK ON THE ROAD

"Although many asset managers said during the financial crisis that they would never touch subprime again, subprime lending has made a return in auto lending. Data show that outstanding car loans rose 25 percent in the past three years, and car loans continue to rise even as outstanding loans on credit cards hover near 10-year lows. Moreover, subprime loans now represent about a third of all new car loans, up from nearly one-tenth five years ago, and one-tenth of new loans are "deep subprime," given to consumers who previously would have had little chance of getting financed.

Observers attribute the return of subprime lending in the auto industry to asset managers DESPERATE TO GENERATE RETURNS IN THE ULTRA-LOW INTEREST RATE ENVIRONMENT ..."

 


 

Wed, 05/07/2014 - 20:53 | 4738087 Beam Me Up Scotty
Beam Me Up Scotty's picture

Funny thing is, no one ever asks why tuition is going up at 10x the rate of inflation. They only ask why there aren't more government handouts.

If your local gas station was charging $40 per gallon, and that was the only place you could buy it, you would sure be asking questions!

Wed, 05/07/2014 - 21:35 | 4738233 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

At one time I was a fan of student loan relief. The more I think about it, hell no! Why should we bail out someone who played around for 4 years, learned nothing while getting a lesbian studies degree? Full of nothing buy Marxist indoctrination.

Thu, 05/08/2014 - 00:07 | 4738654 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1 I have to agree.  Now if you want to go college, you better damn well study something worthwhile...

Fri, 05/09/2014 - 00:16 | 4742377 sun tzu
sun tzu's picture

but it's a basic human right for them to fuck around for 4-6 years on your dime

Thu, 05/08/2014 - 07:38 | 4739086 rbg81
rbg81's picture

Concur 100%.  This is nothing but a subsidy for moonbat liberal professors.

Wed, 05/07/2014 - 21:37 | 4738239 RafterManFMJ
RafterManFMJ's picture

Only imbesiles go to collage.

Wed, 05/07/2014 - 23:37 | 4738598 Beam Me Up Scotty
Beam Me Up Scotty's picture

I see you failed spelling...

Wed, 05/07/2014 - 23:59 | 4738635 Babaloo
Babaloo's picture

You apparently failed sarcasm.

Thu, 05/08/2014 - 02:01 | 4738792 Beam Me Up Scotty
Beam Me Up Scotty's picture

There's no room for sarcasm anymore. We've got a war to win!!

Thu, 05/08/2014 - 04:41 | 4738902 The Navigator
The Navigator's picture

We certainly have a war to win - sarcasm is always a useful tool in lighting a darkened room where cockroaches live.

Wed, 05/07/2014 - 22:18 | 4738346 libertus
libertus's picture

There is no excuse for paying over $10,000 a year in tuition as a student. There is no excuse for paying faculty less than $3000 a class. Fight the system by creating another one---oplerno.com is the change your waiting for. Please check it out!

Thu, 05/08/2014 - 02:32 | 4738817 joe6px
joe6px's picture

The real problem is that the American dream told them that an education would assure them a middle class lifestyle.  The middle class lifestyle has out-distanced a bachelor's degree, or even a household with two degree earners (liberal arts degrees).  SCIENCE AND ENGINEERING degrees still provide, and problem solving and American (yes American) problem solving is still the leading edge.  Sorry you got a business degree. Read and understand that electricians and hvac journeyman make more than a business educated b.s. degree earner throughout a comparative career. Simply because one individual installs it, and another pretends to understand it.  I DID MY TIME ON BOTH ENDS. My degree moved me from hourly to salary, and I earn less. Yay!  I am more than ready for the revolution, again.

 

Thu, 05/08/2014 - 06:52 | 4738987 Mareka
Mareka's picture

Once again, those of us who are paying for something WITHOUT borrowing money get screwed by the FED. Two sons in college & halfway through. 

Traded Bernanke for another clueless sock puppet.  If the actual meetings where Bernanke received his monitary policy instructions from the banking cartel were televised, I am convinced that there would still be no action by congress and no public outrage.

Fri, 05/09/2014 - 01:16 | 4742486 Ariadne
Ariadne's picture

mmm fluoride. Those NAZIs we adopted sure were the cream of the crop.

Thu, 05/08/2014 - 07:08 | 4739025 RabbitChow
RabbitChow's picture

Save for 20 years? No problem.

Interesting you should mention that.  Inflation has for the most part wiped out savings of most anyone who started when they were young.  You would have to be extremely lucky putting away $1000 in the early 70s in the right investments to make out well.  On the average, I have seen most people who were working in the 70s accrued perhaps a few hundred thousand for retirement.  What 's funny to me is that people can accrue the same amount nowadays in very little time compared to the 30 to 50 years these older folks spent.

Wed, 05/07/2014 - 20:17 | 4737957 McMolotov
McMolotov's picture

I remember the days of keeping premixed bottles of Sunny D and vodka in the minifridge. Good times. Not sure it'd be worth it with today's tuition, though.

Wed, 05/07/2014 - 22:28 | 4738387 Buckaroo Banzai
Buckaroo Banzai's picture

I never understood the appeal of vodka and orange juice.

Thu, 05/08/2014 - 05:44 | 4738940 negative rates
negative rates's picture

You never understood women.

Wed, 05/07/2014 - 21:09 | 4738149 seek
seek's picture

We have real schools here, it's just that half the students come from places with snow that think it's 24/7 party time.

You can see the tuition is due to the funding cuts -- they sent the money (what was left of it, anyway) to K-12.

The 2008 crash killed tax revenues so they passed on the lost revenue as cuts to the universities. As well, since everyone is unemployed they decided to go to school so we've got higher enrollments.

Fri, 05/09/2014 - 00:22 | 4742383 sun tzu
sun tzu's picture

With more students, why did tuition go up? One professor with a TA can teach 100 students. One professor with 2 TA's can teach 200 students. How much does one extra TA cost in comparison with the tuition from 100 additional students?

 

$2,500/class x 100 students = $250,000 extra revenue

That extra TA is probably paid $5,000 for the semester.

Wed, 05/07/2014 - 23:19 | 4738550 beercandad
beercandad's picture

I drive by the U of Arizona campus at least monthly --Millions of $$$$ of new brick palaces --when in the internet age , do we need them ?

Fri, 05/09/2014 - 00:23 | 4742387 sun tzu
sun tzu's picture

Not everyone has a science or engineering lab in their home

Thu, 05/08/2014 - 01:44 | 4738775 Freewheelin Franklin
Freewheelin Franklin's picture

Well it's cheaper to live in Arizona, if that's any consolation. Or at least, it was when I was looking at colleges to continue my education in 1991.

It was between Stevens Institute of Technology in Hoboken, and U of A in Tuscon.  A shithole studio apartment in Hoboken was about $600/month. A two bedroom house 2 blocks away from the university in Tuscon was $200/month. 

Wed, 05/07/2014 - 20:03 | 4737901 Bear
Bear's picture

California always seems to be in the top tier; increased tuition and less reduction in its support payments. But always the leader in important society changing curriculum ... 351 classes in Diversity Studies at UC Berkeley. 

Wed, 05/07/2014 - 20:50 | 4738066 Alberich
Alberich's picture

Higher education in California may offer more competitive mating opportunities than other states. At least that was true when I went to UC. Who's to say that isn't a better ROI anyway?

Wed, 05/07/2014 - 20:04 | 4737909 McMolotov
McMolotov's picture

"You fucked up. You trusted us! Hey, make the best of it!"

Wed, 05/07/2014 - 20:08 | 4737924 Buckaroo Banzai
Buckaroo Banzai's picture

"We'll swear that you parked it in the back yard last night-- and in the morning, hey! It was gone!"

Thu, 05/08/2014 - 05:45 | 4738943 negative rates
negative rates's picture

Like your mind is about to be, gone.

Wed, 05/07/2014 - 20:04 | 4737910 Colonel Walter ...
Colonel Walter E Kurtz's picture

University of Phoenix.....quality demands high prices!

 

Wed, 05/07/2014 - 20:50 | 4738041 Ignatius
Ignatius's picture

Obama's been in office about 6 years, now there's a 'liberal' education.

If people don't 'get it' now they're hopeless.

I wouldn't call it a free education, but we've been able to live/study at home, which is nice.

Wed, 05/07/2014 - 22:08 | 4738308 Cpl Hicks
Cpl Hicks's picture

How's your pyloric valve doing?

Wed, 05/07/2014 - 22:44 | 4738439 Ignatius
Ignatius's picture

Temporarily open, half way.

Wed, 05/07/2014 - 20:08 | 4737915 Chuck Knoblauch
Chuck Knoblauch's picture

Solution to the high cost of education?

At least one solution, anyway.

Major in a foreign language.

Borrow as much money as possible.

Move to another country that speaks that language.

Tell the bank(s) to go fuck themselves!

(Get your passport before you default - KEY)!

Thu, 05/08/2014 - 00:17 | 4738670 DoChenRollingBearing
DoChenRollingBearing's picture

Double major in something useful like engineering too, it will make landing "over there" easier.

Thu, 05/08/2014 - 00:26 | 4738684 Never One Roach
Never One Roach's picture

Chuck, You forgot ... max out your 34 credit cards (unsecured credit) before you leave.

Thu, 05/08/2014 - 04:46 | 4738909 The Navigator
The Navigator's picture

If possible, put ALL of your tuition on CC and THEN follow steps above.

Wed, 05/07/2014 - 20:07 | 4737917 Buckaroo Banzai
Buckaroo Banzai's picture

Student loans up 700% in five years? IN FIVE YEARS.

Fucking incredible.

Wed, 05/07/2014 - 20:09 | 4737931 Chuck Knoblauch
Chuck Knoblauch's picture

Why was the Department of Homeland Security established?

Wed, 05/07/2014 - 20:14 | 4737932 ebworthen
ebworthen's picture

Hmmm...looks like I need to go back to my Alma-Mater in Maryland to get my PhD in Economics at 60.

There are some great Jewish deli's near campus, not to mention crab cakes and blue shell crabs.

I could hit up all the 40 something MILF's getting their Masters in Social Work.

Wed, 05/07/2014 - 21:02 | 4738129 Charles Nelson ...
Charles Nelson Reilly's picture

Trust me... Unless you like living in a place where there is fukking rain tax, I'd steer clear of this fascist state. Even in the so called red counties like mine (Fredneck) the faux repubs running the show tax you to death. On top of that they love their local police state out here. Fukking dumb serfs...

Thu, 05/08/2014 - 05:48 | 4738947 negative rates
negative rates's picture

You just got trusted, and don't  pull a copycat down, i'm an administrative law judge who can have you arrested. 

Wed, 05/07/2014 - 21:06 | 4738144 Charles Nelson ...
Charles Nelson Reilly's picture

Attmans for corned beef in Baltimore, G&M near BWI for crabcakes, Cantlers for crabs out in Annapolis... That is the to do list folks when you're in the Not-So-Free state.

Crabcakes and serfdom... That's what Maryland does.

Wed, 05/07/2014 - 22:36 | 4738409 ebworthen
ebworthen's picture

Thanks Charles.

I remember well the horrendous taxes, and even the County tax (Montgomery County), and the astronomic H.O.A. fees, and fees for breathing.

I left because of that, the Police State atmosphere, the gangs and shootings, the traffic, the high cost of living, the libtards and the two-faced Rebloodlicans.  If Washington is Mordor on the Potomac Maryland is Isengard.

Thu, 05/08/2014 - 05:52 | 4738949 negative rates
negative rates's picture

Today we search without warrents cause the red tape is just phenomonal and he can't wait sometimes for his style of justice.          ; > )

Thu, 05/08/2014 - 05:46 | 4738945 negative rates
negative rates's picture

Wreckonomics, my favorite subject.

Wed, 05/07/2014 - 20:11 | 4737940 i_call_you_my_base
i_call_you_my_base's picture

That money is financing small / medium town economies. It goes into development / construction and local businesses. It's just another form of a debt-based "stimulus".

Wed, 05/07/2014 - 21:01 | 4738124 813kml
813kml's picture

It is also used to buy the latest iToys, Apple would take a serious hit if/when the student loan bubble pops.

Wed, 05/07/2014 - 23:32 | 4738585 natty light
natty light's picture

Wouldn't enjoy paying interest on a pizza from 20 years ago.

Thu, 05/08/2014 - 00:16 | 4738668 Serenity Now
Serenity Now's picture

And unlike subprime mortgages and auto loans (as bad as they are), student loans are BACKED BY NOTHING!

It is truly money created out of thin air to keep the ponzi scheme going.  And it's not going to be paid back.  Not with the moral hazard that exists today.

 

Wed, 05/07/2014 - 20:14 | 4737946 Robot Traders Mom
Robot Traders Mom's picture

God this country is a complete fucking mess. This is all social darwinism and we deserve everything we get...

www.TopTheNews.com

Wed, 05/07/2014 - 22:33 | 4738402 centerline
centerline's picture

This shit is global. Just different degrees of FUBAR. And the degrees of FUBAR won't correlate to outcome either. When this global circle jerk ends, it is going to be an "all bets are off" sort of thing.  Resources, community, etc. will matter most.

Probably will melt down over time... those are able and willing to read the proverbial tea leaves will do best.

Wed, 05/07/2014 - 22:42 | 4738434 ACP
ACP's picture

Luckily, it will be just plain Darwinism soon enough...

Thu, 05/08/2014 - 05:53 | 4738952 negative rates
negative rates's picture

Like that face we are staring at?

Wed, 05/07/2014 - 20:14 | 4737949 yogibear
yogibear's picture

The head Federal Reserve banksters love the hockey-stick debt chart. It's infinite debt for those Keynesian PhDs 

Wed, 05/07/2014 - 20:25 | 4737983 pocomotion
pocomotion's picture

I dated a smart, hot chick who was in college.  After her graduation I watched her get old and ugly all the while paying off her student loan.  I left her for a younger college chick that was smart and hot.  OK, it's bad about the student loan debt.  I just wanted to share some love in it all.

Wed, 05/07/2014 - 20:26 | 4737985 s2man
s2man's picture

And that is why Ivy Legue schools were the only ones, at one time.  Only the rich could afford it.  Then education became a public entitlement and everyone could go. So, in our broke/bankrupt economies, we will return to 'only the rich can afford it'.

VoTec, anyone?

Fri, 05/09/2014 - 00:30 | 4742397 sun tzu
sun tzu's picture

It's overrated and 70% of degrees are useless

Wed, 05/07/2014 - 20:32 | 4738001 Surging Chaos
Surging Chaos's picture

A few colleges in Oregon have had the vice tighten on them in terms of funding. It comes as no surprise that those same colleges have been on a building binge for the last 3-4 years. The money is starting to finally show signs of drying up. Of course, the response has always been the same: cut faculty, add MOAR administrators, and jack up tuition to make up the difference.

This will not end well for many colleges and the cities that depend on their local college as a major economic pillar.

Wed, 05/07/2014 - 20:32 | 4738002 redbird
redbird's picture

If you think tuition has gone up, you should take a look at the parking fees.   Cheaper to rent an apartment these days.

 

Wed, 05/07/2014 - 21:04 | 4738140 FredFlintstone
FredFlintstone's picture

Ohio State has privatized the parking. "Sold" the revenue to an Australian company for $483M. Sounds like a dirty deal involving cas and hookers.

Wed, 05/07/2014 - 20:34 | 4738008 FredFlintstone
FredFlintstone's picture

This chart makes Ohio look good, but the truth is that tuition here has gone up over 10 fold in 34 years. Tuition at OSU was like $313/quarter back in the fall of 1979 when my sister started (a little over $900/yr). Her senior year was my freshman year and we paid $527/quarter. When I graduated it was just over $700 per quarter. It is now over $10,000 per year and that does not include all of the fees they tack on.

Back when I was there the President Ed Jennings has a salary of $115,000 (in 1987?) and I thought that was outrageous as engineers were only making about $28,000 to $30,000 coming out of school. A couple of years ago they were paying that skinny-necked, bow-tied freak ( E. Gordon Gee) over a million bucks a year, with bonuses, expenses that may have included $700k for travel or something ridiculous like that, plus he lived in a university-owned mansion with staff.

Most salaries of graduates have maybe doubled, but tuition and the president's compensation goes up 10 times. Yep, you gotta love this country and what has transpired.

 

Wed, 05/07/2014 - 20:47 | 4738055 prains
prains's picture

how much does the football coach make, that will explain how truly fucked up the entire university system has become

Wed, 05/07/2014 - 21:02 | 4738130 FredFlintstone
FredFlintstone's picture

He makes a bunch. What is crazy is his asistants. They used to make maybe $200k to $250K now some of them are making $400k to $450K.

Wed, 05/07/2014 - 21:36 | 4738236 thank-you-jerry
thank-you-jerry's picture

I read today that a University of Kentucky ASSISTANT basketball coach is making $1mm a year. 

Wed, 05/07/2014 - 22:26 | 4738375 brown_hornet
brown_hornet's picture

And the football and basketball programs still pay for all the other sports plus turn a profit.

Thu, 05/08/2014 - 05:02 | 4738919 The Navigator
The Navigator's picture

I don't know where everyone plans on escaping to but when people leave their states/countries for lower tax rate states/countries, these pension are going to go belly up - and profs and TAs with great retirement programs will have to deal with 'Detroit-like-pension-renegociations'

If you can, get your business, assets, income out of these high risk states - as a last grasp, they will try to grab your money before/while you leave. CA with a 13+% income tax is coming soon to your state.

AND stackers know, it's portable, it's fungible, and it's yours.

Fri, 05/09/2014 - 00:33 | 4742402 sun tzu
sun tzu's picture

The football team probably brings in more money than tuition from all the students. Get rid of the football and basketball teams and tuition will really skyrocket.

Thu, 05/08/2014 - 18:48 | 4741482 Colonel Walter ...
Colonel Walter E Kurtz's picture

Fred, are you seeing the new residential units they are putting up in order to force the 1st & now 2nd year students to be on campus? Now that the Fed student loan money is being used for anything, they are going after the rent money. Have to believe this is going on all over the United States.

http://thelantern.com/2013/10/ohio-state-campus-living-requirement-elici...

 

Wed, 05/07/2014 - 20:34 | 4738010 Duc888
Duc888's picture

 

 

Is the edjumacation in AZ double plus good since the big increase?

The sad thing is these kids graduate with a degree and if they don't find work in their chosen field within 3-4 years....what they've learned is obsolete and if a job opening pops up a n00b would get it before them.

Wed, 05/07/2014 - 20:36 | 4738019 Duc888
Duc888's picture

 

 

Chuck K..."Why was the Department of Homeland Security established?"

 

To kill all these useless fukkerz when they finally smarten up and revolt.

Wed, 05/07/2014 - 20:48 | 4738067 Papasmurf
Papasmurf's picture

In other words, DHS is redundant.

 

Wed, 05/07/2014 - 20:38 | 4738030 A Lunatic
A Lunatic's picture

Robots don't need college educations.......

Thu, 05/08/2014 - 05:12 | 4738924 The Navigator
The Navigator's picture

Ageed

But if so, where does that leave people.

OR, was that the plan??

Once civilization reaches a point where most/all production is done by robotics, what is the need for 95% of the workers, the middle class, the 'eaters'

So where do WE figure into that equation?

Fri, 05/09/2014 - 00:35 | 4742407 sun tzu
sun tzu's picture

You/we don't

The elites will keep a small population around as servants and for entertainment. The rest of us aren't needed

Wed, 05/07/2014 - 20:39 | 4738034 New_Meat
New_Meat's picture

a college admin and "teacher" union thingie

Wed, 05/07/2014 - 20:42 | 4738040 Lone_Star
Lone_Star's picture

Just finished my MBA and while there's $Thousands in aid available I was the wrong race/gender/citizenship status to qualify. I paid for my classes semester by semester.

Wed, 05/07/2014 - 20:50 | 4738076 Papasmurf
Papasmurf's picture

Then you overpaid.

Thu, 05/08/2014 - 08:08 | 4739147 Agstacker
Agstacker's picture

Paint yourself a different color, go to school for free!

 

https://www.google.com/search?q=tuition+waiver+for+minorities&oq=tuition...

Wed, 05/07/2014 - 20:43 | 4738043 ableman28
ableman28's picture

Whoa, the one notable benefit of all this is the number of "debtutantes" flocking to sights like Seeking Arrangement. Having put three very attractive young women through school and met a number of their friends for special occassions I can say I have finally found the real benefit of slaving for decades to build up a sizable business.  

 

Wed, 05/07/2014 - 20:49 | 4738071 DOGGONE
DOGGONE's picture

AND look at the pandering rottenness of higher education's behavior:

http://occupywallst.org/forum/higher-education-panders-to-intellectual-s...

Wed, 05/07/2014 - 20:53 | 4738075 FredFlintstone
FredFlintstone's picture

Ohio State says they have 57,000 students. Not sure how many are part time. Here is how many employees they admit to having: 32,983 full time equivalents, 43,630 head count.

 

Wed, 05/07/2014 - 21:16 | 4738169 JR
JR's picture

Two additional factors, a) many of the full professors who do very little teaching are paid ludicrously high salaries and b) a large portion of the student body pays little or no tuition because they qualify for special financial aid. Add that all up and the student who does have to pay gets hit with higher tuition every year.

It would be interesting to know how many students nationwide pay nothing.

And that doesn't account for the fact that every single solitary year the university either builds a new building or adds to the ones it already has, or finances an entirely new building project. They're like insurance companies; they've never known what it's like to tighten their belts. If they don't get their grants, they start screaming like stuck little pigs.

BTW, incredible statistical find. Thanks.

Wed, 05/07/2014 - 21:34 | 4738232 machineh
machineh's picture

'It would be interesting to know how many students nationwide pay nothing.'

It would indeed. But all that matters is that one of them was named Barky Obama.

The rest is history.

Wed, 05/07/2014 - 20:52 | 4738083 Milestones
Milestones's picture

What is it going to take to get americans off theur dead asses?? My guess when ma-ma comes in and tells the old man drinking his 12 pak that she can no longer fed the kids or when the police to come for his guns and his dues for the policeman's benefit society.

We have become a society of big time losers, er chumps.                     Milestones

Wed, 05/07/2014 - 20:55 | 4738097 Bemused Observer
Bemused Observer's picture

Well, student loan debt is non-dischargeable. So, it grows at a fantastic rate...

See, the whole purpose of a periodic 'cleansing' or debt jubilee, (in modern times replaced with the bankruptcy) was to relieve pressure on the system, and provide for the releasing of excess "gas". If you don't do that, you have a problem.

So, by insisting on grabbing profit, they slapped a tight-fitting lid on a boiling pot to keep the steam from getting away.

Wed, 05/07/2014 - 20:56 | 4738103 FreedomGuy
FreedomGuy's picture

A certain part of me takes great delight in this. Colleges are to modern liberalism what churches, mosques and pagodas are to religion. This is where the left makes their own and where their monks live isolated from real life.

This is where fairness, equality and social justice are taught. Free markets and entrepreneurs are mere exploiters and not to be trusted apart from government control. Add to this the long list of stuff that should be free, principle among which is education.

These skyrocketing costs and debt burdens come from the bastions of the Left, not the greedy exploiters of the right. Take notes, students.

Wed, 05/07/2014 - 21:03 | 4738134 Dingleberry
Dingleberry's picture

Agree with everything you wrote freedom. What a nice biz model to indoctrinate your own customers.

The real reason tuition has skyrocketed has zero to do with any of these bullshit charts listed.

It's the same reason that the housing, medicine, etc. has skyrocketed:

cheap, government-backed money.

 

Wed, 05/07/2014 - 22:59 | 4738486 FreedomGuy
FreedomGuy's picture

Partially agree, Dingle. However, tuition has gone up faster than inflation. It is the access to public money and partly because it is a pillar of liberalism and state support.

The cheap government backed money is of course a core belief of statists and the centrally planned economy.

Wed, 05/07/2014 - 22:22 | 4738360 Totentänzerlied
Totentänzerlied's picture

They also teach, you know, mathematics, statistics, medicine, engineering, technology, and the sciences...

Wed, 05/07/2014 - 23:01 | 4738494 Sticky Wicket
Sticky Wicket's picture

They teach that stuff to foreigners. Americans prefer to get degrees in underwater genderqueer protest sign making.

Wed, 05/07/2014 - 23:08 | 4738519 FreedomGuy
FreedomGuy's picture

I think that degree is also called "Community Organizer".

I am going to plagiarize your post and that degree.

Wed, 05/07/2014 - 23:07 | 4738515 FreedomGuy
FreedomGuy's picture

I am not arguing they teach those things, along with a lot of stupid things, as well. I still assert that the universities are bastions of liberal statist collectivism and managed and populated by people sympathetic to those politics.

Notice that everything you list is a hard science with real application to the real world.

Historically, advanced education like college was for two purposes. It was a province of the wealthy who could afford it. A gentleman would study both basic sciences and things like philosophy, history and even theology. It was a luxury as they were going to take over the family business and estates at some point no matter what.

The second reason was more practical. You needed traiining for real work such as engineering, medicine or now even the computer or tech world. Parallel to it were actual trade schools, as well.

Now, it seems that it is almost an assumed right and the Left tells everyone that simply having a degree confers prosperity. It is a sort of light lie hidden in the averages. When you average a pediatric neurosurgeon and someone working as a barista because they have a degree in underwater basket weaving or gender studies in the Middle Ages you get a higher average but it is not true for everyone.

Wed, 05/07/2014 - 20:57 | 4738111 I Write Code
I Write Code's picture

If you come from anything like a middle-class (or lower) family the real cost of going to a UC campus is probably higher now than the cost of going to Stanford, because even though the list price at Stanford is much higher Stanford discounts heavily for students who do not come from 1% families.  Or foreign oligarchs.

Wed, 05/07/2014 - 21:02 | 4738132 david goliath
david goliath's picture

getting awfully expensive to get a job at home depot

Wed, 05/07/2014 - 21:13 | 4738160 Ski12568
Ski12568's picture

First chart looks a lot like the US money supply

Wed, 05/07/2014 - 21:18 | 4738176 Miffed Microbio...
Miffed Microbiologist's picture

Our yearly review with our financial planner was quite interesting. He commended our finances but was exceedingly shocked we had not planned any funding for our youngest's college "experience". Mr Miffed felt my ire building so he stood back when my verbal nail gun let loose.

Under no circumstances would I put any of my money into such a wasteful pointless endeavor. This child has no idea what she wants to do and to push her to get some worthless degree, putting all of us in debt is the height of stupidity. Mr Planner got rather huffy at this and insisted I was hamstringing her marketability as only a high school grad( Mr had that "Oh God buddy, you are so dead" look).

I explained through gritted teeth her marketability is based on her talents as an individual. She is a hard working child that has lots of initiative. Many people would give her glowing recommendations. She lives at home and has no debt so she could take a low salary to learn any trade or position. This is what she has and a stupid fucking degree with a shit load of student loans is of no help here. Planner looked exasperated and gave up trying to educate the dingbat microbiologist. Mr miffed just smiled at him.

Miffed;-)

Wed, 05/07/2014 - 23:03 | 4738501 prains
prains's picture

....sounds like the nSSA/uSSA needs good educators, why not push her to educate.....unfortuantely she'll need an ed, degree to do it. Being educated is not a disease if you know how to use it

Thu, 05/08/2014 - 07:41 | 4739094 SmackDaddy
SmackDaddy's picture

"so she could take a low salary to learn any trade or position"  last i heard she as working in a liquor store.  how's that going?

Thu, 05/08/2014 - 13:33 | 4740341 Miffed Microbio...
Miffed Microbiologist's picture

Actually quite well. I encouraged her to learn the business. The unfortunate part is she is not a Chaldean so her opportunities are quite limited. The stupid part is 5 years ago that place was for sale. It's in an ideal locale and a convenient store for a remote area. Too bad she was born to a couple of stupid wage slaves that couldn't perceive the golden opportunity.

Miffed;-)

Wed, 05/07/2014 - 21:19 | 4738180 22winmag
22winmag's picture

A sorry testament... to the all the *student loan suicides*.

Wed, 05/07/2014 - 21:27 | 4738211 Jack Burton
Jack Burton's picture

From what I know fo staffing levels and administrative pay at our state college system, the money flows very freely to everyone from janitor, whose kids get free tuition as an employee kids, to secretary to midlevel managers on up. The staffing in adminstration is off the charts, and benefits and work loads are mind blowing. With students told by employers that they must hold degrees, even to ask for a job that isn't burger flipping, the student is a captive to the system. Just a look around my daughters school inspred me with the wealth and ease of life style that is enjoyed by staff. Private sector would go after these bloated operations with a meat axe. But, instead, administration is handing out pay raises and benefits while jacking tuition and fees. The have no answer for why they are so costly, only saying how important educations is.

Wed, 05/07/2014 - 21:29 | 4738218 AlchemyFinancial
AlchemyFinancial's picture

Another bubble, fall for it every time.  Tech stocks, if you just invest in them you'll be rich.  Ok, so we were wrong about tech stocks, but real estate never goes down!  Ok, so we know you got burned on real estate, but really at the end of the day the only REAL investment you can ever make is in yourself!  So go get a college degree.  The markets are screwed, and the Nasdaq looks ready to collapse.  My analysis, watch the nasdaq the next few weeeks.  http://www.alchemyfinancials.blogspot.com/2014/05/stock-market-is-starti...

Wed, 05/07/2014 - 21:29 | 4738219 AlchemyFinancial
AlchemyFinancial's picture

Another bubble, fall for it every time.  Tech stocks, if you just invest in them you'll be rich.  Ok, so we were wrong about tech stocks, but real estate never goes down!  Ok, so we know you got burned on real estate, but really at the end of the day the only REAL investment you can ever make is in yourself!  So go get a college degree.  The markets are screwed, and the Nasdaq looks ready to collapse.  My analysis, watch the nasdaq the next few weeeks.  http://www.alchemyfinancials.blogspot.com/2014/05/stock-market-is-starti...

Wed, 05/07/2014 - 21:54 | 4738246 MontgomeryScott
MontgomeryScott's picture

Hmmm.

COLLEGES.

COLLEGES tell the student that he or she has to take TWO YEARS of WORTHLESS SHIT (like 'HUMANITIES') in order to even QUALIFY to RECIEVE a degree in whatever the 'major' is (like underwater basket weaving, 'social work', or 'economics)'.

COLLEGES are controlled by communists and socialists who claim to be 'educated'. THEIR 'business' is teaching masses of 'higher education candidates' WHAT to think, not HOW to think. FIT IN, CONFORM, take OUR TEST OUR way, and score more points, BUY the Houghton/Mifflin textbook NEW (for, what, $250.00), and LEARN what these pundits are FORCING you to 'know'. Ah, the KEYNSIAN THEORY, and the 'fact' that 'independent thought' is described as a psycological DISEASE, and the POLICE are there to PROTECT at ALL TIMES (especially when they are shoving your face in to the gravel because you forgot to be 'polite' to them and respect their 'authority').

Hmmm.

STATE FUNDING.

It has dropped, I see. STATE funding is IMPORTANT to COLLEGES, because without it, they have to charge their conscripts MOAR in order to keep up with the inflation in unionized SALARIES of the so-called 'TEACHERS' who READ YOU a LESSON PLAN that includes Keynsian Economics, and... ('Tenured'? SHIT! 'TEN YEARS', and all of a sudden, they are guaranteed a LIFE of ever-increasing salaries and relieved of any responsibilities for being planted and controlled tools and assholes?)...

Hmmm.

The FEDERAL GOVERNMENT, in 'cooperation' with public/private banking corporations, has to offer 'student loans', and now that there are NO JOBS (thus, 'lowered' TAX REVENUES, mostly due to the fact that the NATIONAL DEBT to these banks has to be 'SERVICED' ad infinitum; and the fact that the FEDERAL PUBLIC/PRIVATE CORPORATIONS have gone for the 'INCREASING PROFIT AT ANY COST model, as TAUGHT to them in COLLEGE, which included such things as 'just-in-time-delivery', and 'OUTSOURCING', thus KILLING the revenues that were needed to PAY for 'COLLEGE TUITION' at the STATE level),

Hmmm.

I'm wondering if all the college-educated idiots that signed off on the G.M. ignition switch problem or the design of the F-35 'strike fighter' (as a WHOLE) or the 787 'Dreamliner' batteries will lose their jobs. NO, of COURSE not, they are a part of the 'CORPORATION', and THEY have 'DEGREES', and YOU DON'T, because YOU are not SMART like THEY ARE, because the COLLEGE PROFESSOR taught THEM what to think (NOT YOU, you silly taxpaying 'citizen').

I hope that they can eat that fucking 'sheepskin', or use it as a blanket to keep them warm this winter; and all the cold, cruel winters that are destined now.

WHAT ARE THEY TEACHING THESE DAYS IN COLLEGE? CORRECTIONS OFFICER DEGRESS FOR THE FUCKING NWO FEMA CAMPS after the revolution and world war that they wanted in the first fucking place? A HISTORY OF MILEY CYRUS AND TWEAKING so that sexual deviants can get their rocks off? GAY LIFESTYLE ACCEPTANCE courses? E-FUCKING-BONICS?

Gee, it looks like a giant fucking pre-planned conspiracy or something, on the part of the 'controllers' who decide who gets WHAT funding to teach WHAT shit to the NEW CROP of useless idiots and bottom-feeding children that can talk Daddy and Mommy in to co-signing a loan from the BANK of the FED to pay exorbitant amounts of worthless scrip to get 'learned' to do stupid shit.

Too bad, though, that the fiat 'funding' is all but DRIED UP, and; say, did that proposal in your STATE to go ahead and raise your property taxes for the 'SCHOOLS' get passed again; and did you see that 'NEW' think called 'COMMON CORE EDUCATION'; and, hey, I thought that 'NO CHILD LEFT BEHIND' was going to pay for this shit; and, FUCK, PEOPLE, are you frigging BLIND as WELL as STUPID?

Ummm... YUP.

(SHAKES HEAD IN DISBELIEF OF THE IGNORANCE AND ARROGANCE OF THE SITUATION, AND THOSE WHO MIGHT POSSIBLY DEFEND, PROTECT, OR DEFLECT FROM THE REALITY THEREIN)

The FEDERAL GOVERNMENT college-educated idiots and assholes just passed a LAW that by 2016, all cars are to be equipped with 'back-up' cameras. I guess the people are too stupid and lazy to adjust mirrors or look behind them when backing up. ALSO helpful when tied to two-way transmissions of data streams, when the one at the other end wants to turn on the camera without permission, and determine exactly where you are, so that roadblocks can be set up ahead of you (in case you are doing 56 in a 55 zone, and breaking the law).

YES, they teach people to be DOCILE, and ACCEPT the rape (and that's about ALL they teach in COLLEGE, EXCEPT that they teach ways to CONTROL for the sake of CONTROL).

Wed, 05/07/2014 - 23:18 | 4738545 RichardParker
RichardParker's picture

Montgomery:

I hate to tell you this but it's actually much worse than you think.

They're pushing a new rating system for colleges and universities that helps them pick winners and losers.

https://www.google.com/#q=obama+rating+universities

And they're getting an early start on centralizing the education of children in America via Common Core.  States are losing their rights to design education curriculums in the name of democracy and equality.

https://www.google.com/#q=common+core%2Bstate+rights

Give me 4 years to teach the children and the seed I have sown will never be uprooted.
Give us the child for 8 years and it will be a Bolshevik forever.
~ V. I. Lenin

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