Friday, April 20, 2012


I've often written on the blog over the last couple of years about how college costs are out of control.  You can say that costs are driven higher by excess demand as "everyone" needs to go to college now and others point their finger at the massive college loan and federal aid subsidies that put gobs of money into the hands of immature and financially illiterate youths that have never thought to examine the return on investment for $100,000 of borrowed money.  (See past writings on this subject - "SLAVERY THROUGH STUPIDITY, ENTITLEMENT, AND LIBERAL ARTS")

Clearly, college tuition costs have raced higher over the last 10 years and it is probably attributable to these ideas and even others like the expansion of stupid programs and hiring of professors and Deans to promote "Diversity" on campus.  I've howled about how colleges now emphasize more liberal arts and less hard science and math and how the "system" is not focused on teaching but providing "the college experience".

I even wrote about how the Alumni Association of the University of Texas rallied against Texas Governor Rick Perry's challenge to create a 4 year degree program for students that could be completed online at a cost of no more than $10,000.  They complained that the degree conferred would rob students of the maturing they receive and the college experience.  Let me tell you, that "college experience" robbed me of 2 extra years in school and it would have been longer had I not discovered that the purpose of college is to be equipped in the skills of critical thinking and teaching valuable real world information to prepare kids for a real job.  Nothing else!

Here is a snapshot of what has happened to costs in the last 10 years courtesy of Bloomberg.

Bloomberg is trying to make the point here that out of control college costs are crowding out a person's ability to purchase a home because student loan debt makes them hesitant to buy.

Finally, I'll end with a nice chart from the WSJ - This chart highlights the highest paying college majors and also some of the lowest.

Personally, I feel pretty strongly that anyone that wants to go into Social Work should only do so by obtaining an education at a public higher education institution (not private) and only based on receiving grants and other scholarships.  This is a fine helping career, but it isn't one that cannot support a living, especially if that student takes on $125,000 in debt to finance it from a private school.  Remember these two clowns?.... -Social Workers with $240,000 in loans-.


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  1. saw your post at Slope....

    sounds like the theme of this post may be generational? The current stress in your family story is a good example.

    from esquire:

    “The political imperative is to preserve the economic cloak of unreality that the Boomers have wrapped themselves in.”

    “If you follow the money rather than the blather, it’s clear that the American system is a bipartisan fusion of economic models broken down along generational lines: unaffordable Greek-style socialism for the old, virulently purified capitalism for the young. Both political parties have agreed to this arrangement: The Boomers and older will be taken care of. Everybody younger will be on their own.”

  2. I like your writing though I generally disagree with your point.
    In this piece, you miss a major contributing factor for the increase costs of tuition - decreased federal funding which began under Regan (Pell Grants are still limited to 1980 levels). Also, banks have gotten into student loans big time...can you say "privatization".
    I believe a republic like ours depends on a strongly educated populace. Education is an engine for economic growth.
    I do agree with you that not everyone belongs at a college. Our system needs an overhaul and so does our healthcare system.
    Thanks for your blog...good read...too much Texas conservatism for me.


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