If competition should ensure low prices, why are college

because the government insures these loans, so anyone regardless of qualification can go to college and pay later.

>>1432039
I am European, so take for granted that I know little to nothing about these loans.

Assumed government subsidies are cut, how could children of less-than-rich parents still pay for college?

>>1432049
Private loans given at 25% apr

>>1432049
>how could children of less-than-rich parents still pay for college?
By not making it easy to borrow money and inflate college tuition to ludicrous prices.

>>1432035
False. Competition ensures efficient pricing, not low pricing.

Efficient means balance the demand with the supply.

You might want to take econ at a community college before you go to uni. There are lots of community colleges (suppliers of education) so classes are generally priced competitively.

Or you could just whine on Facebook about capitalism and socialism like all the other uneducated millenial faggots

>>1432054
Unacceptable.

>>1432055
>By not making it easy to borrow money
You might have reduced nominal costs then, but heightened interest rates will (over)compensate for it. So the factual costs stay the same. Not a solution.

>>1432064
>Competition ensures efficient pricing
The question of efficiency of education is more complex than the price on the entry ticket, in the long run. Government-subsidized college might mean higher investment at first, but then also higher return in taxes.

It depends on whether graduates get good jobs afterwards.


One question, have the accessibility and amount of US government really increased four times between 2003 and 2013?

What competition?

Don't say between universities, cause they don't compete with each other at all.

>>1432065
>but heightened interest rates will (over)compensate for it
No, you're missing the point. If loans were hard to borrow, overall tuition will decrease despite a higher interest rate. It's a vicious cycle of easy money and inflation. That's how bubbles work and the federal government gives money like candy to everyone. It's really irresponsible.

>>1432049
>how could children of less-than-rich parents still pay for college
Colleges would offer deferred payment plans much the same as car financing or home loans. Or people would do what every other country does and work to earn money to pay for it.

If competition should ensure low prices, why are medical costs skyrocketing?

>>1432090
>If loans were hard to borrow, overall tuition will decrease
I got it.
What I meant is: increasing interests on student loans by 25% might mean that prices fall by the same amount. But since you still have to pay the interest, the effective price is the same. 25% of the profits were simply redistributed from universities towards lenders.

>>1432088
May very well be.

But then, I often heard Republicans saying that "more competition between colleges" is a solution for rising costs. And I thought it makes sense at first.

>>1432094
>Or people would do what every other country does and work to earn money to pay for it.
Not every other country, lel. In continental Europe, tax-funded college has been the standard solution.

Your proposal is ineffective economically, since young people would waste years in low productivity jobs before getting a qualification that allows for high productivity.
>If competition should ensure low prices, why are medical costs skyrocketing?
I can only speak about Europe, as I know little about the US system of (not) funding medicine.

Here, it is old people. A mandatory public health care insurance is a blessing for the old and sickly and a burden on the young and healthy. And we are getting more and more of the former.

>>1432035
Because, in short, credit markets are efficient.

In detail, the interest rate on a loan should always reflect credit risk of the borrower. If more and more kids are defaulting on their student loans then the overall credit risk of borrowers who are students should increase so the interest rates on these loans should increase over time (as long as kids keep defaulting and not paying their loans back).

Do you know how loans or credit work?

>>1432110
>increasing interests on student loans by 25% might mean that prices fall by the same amount.
>the effective price is the same.
No you're still not getting it. The effective price will not be the same. If tuition is lower, people can pay out of pocket. Students won't have to take a full loan to go to college. Effective price of higher education will most definitely lower.

>>1432111
>Do you know how loans or credit work?
I do.
So more and more (in relative numbers) are defaulting on their student loans?

That is a desperate situation for graduates, where are worse labour market also means worse credit conditions.

>>1432071
>the question of efficiency of education
Similar words, but talking about different stuff entirely. Go to school, you're not too smart for it.

>>1432049

Work and study part time

no downward pressure on college prices.

customers make no value judgements on price since the cost of education is hidden by easy to get government loans

These loans will always be adequate to pay for education, and so colleges can inflate prices for any arbitrary shit and no one cares.

>>1432119
>http://www.wsj.com/articles/more-than-40-of-student-borrowers-arent-making-payments-1459971348

Pretty much. I think it has to do with kids picking stupid majors under the assumption that they don't have to pay for school because they take out student loans (which they don't even consider their possibility to pay back when picking their major). It's on the students more so than the lenders and educational institutions.

>>1432035
>tfw where I live I receive top education for 1000$ / year.

>>1432035

It's a fixed game. No different than the healthcare crisis.

Pro-tip: It's really easy to fix the game when the industry in question provides a commodity every citizen needs (or in this case, every citizen was convinced to need)

>>1432035

Because there is a greater supply of people trying to enter colleges. This creates high demand for them and increasing prices.

Its shitty though that all majors are the same equivalent cost. Should be a per major tuition, not per student. Colleges should adjust pricing for students based on the demand for that major at their school.

Schools with impacted majors could charge more for that major, but leave the other students with less demanded majors at a lower tuition.

This would stabilize impacted majors and increase enrollment in less chosen majors like STEM.

College is a meme

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>bank account gets 0.025% interest
>student loans have 5% interest

>>1432453
That is the case though, to some degree. Colleges within the University itself will have varying tuition costs based on what I assume is demand and some part reputation.

>>1432035
What competition?
Number of spots at good institutions are limited,
No one wants to go to Bum fuck University.
People only want to go to Good Universities like Monash University.

>>1432054
No, more like 6-8%

t. student

>>1432468
perpetuated by boomers who think college is today what it was in 1970

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Because no president or congress wants to tell the American people that, "oh my, not everyone is smart enough for college!!!"

So they just bullshit to everyone, saying they and their children are all "special snowflakes" that should follow their dream career, even if it's a career in making menstrual period paintings (yes, there are actual artists like this out there, I wish I was kidding).

Also, it's probably jews again trying to create a new indentured plantation slavery system, based on inescapable debt, by tricking people when they are young, stupid, and not knowledgeable about finance still.

>>1432765
How would they know? Some don't even have High School education.

>>1432035
Because these days... no really high paying job would hire you without some college degree.

So it's either flip burgers at mcdonalds... or get some overpriced degree with crazy debt...

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>>1432438
It is obvious that this system benefits the lenders and universities more than the graduates, yup. I am trying to find out to which extent and in which ways.
>>1432828
Pic related.
Also,
>>1433066
>Because these days... no really high paying job would hire you without some college degree.
There is some demand for trade jobs, but it is limited as well and you end up unemployed or underpaid more often on average.

Much of the loan money comes from the government. The rest of it is more or less "insured" by the government via bankruptcy law so that private lenders are always guaranteed to get their money back.

Without these two things, fewer people would go to college, MUCH fewer people would go to expensive colleges for all four years, and there would also be some sort of break on studying useless shit.

The simple fact of the matter is that I know people that went to community college for two years, transferred to a local commuter university, and came out with $30k in debt and a $70k a year job and I know people that went to a semi-famous private art school for six years for graphic design, makes $35k, and now has $400k in debt that he won't be able to pay off before he dies.

>>1433082
Trades aren't bad tbqh, problem is within 10 or 20 years there's a possibility many positions will get replaced by automation. Also, by the time you're 40 you're pretty beat. So in that sense might as well get an undergraduate degree in something else if the particular trade isn't stable enough to last about 20 years.

>>1433092
>Much of the loan money comes from the government.
That still has to pay private lenders to lend it to others, if I am not mistaken.
>went to community college
Are community colleges acknowledged by employers to the same extent as expensive private colleges are?

>>1432035
Too many people going to college and cheap government money. There actually isn't that much competition as so many students are going to college that universities don't really have to compete with them. There's such a huge glut of students and money that the for-profit college industry sprung up to take advantage of it. Most degrees are essentially worthless. I couldn't believe the kind of fucking mouth breathers I had to share classes with in college.

>>1433112
Well yeah, University became a business. I've ever encountered one adviser that was completely honest about the coursework/programs at a university. They always try to sell some retarded jew personality test and tell me I should be an engineer.

>>1432049
If guaranteed loans were not in the picture, the tuitions would have to come down. The market would find a way.

>>1432481
oh does your bank hold your money and refuse to return it for 20-30 years?

>>1432049
By doing well in school and applying for every scholarship and grant under the sun

>>1432035
Maybe more people attend college now?

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>>1432035
Competition amongst debtors for access to debt-servicing will just drive up its cost.

>>1432064
>Efficient means balance the demand with the supply.
You mean aggregate demand not real demand, demand only counts if you have access to spending power under capitalism.

>>1433856
Leave Econfag.