American schools aint ...
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blackdemo
Members Posts: 2,350 ✭✭✭
I believe a good education is important too but I believe it is best left to the private sector and not the government to provide. Here is why:
"I'm from the government and I'm here to help." We all know that is a joke because the government doesn't help, government destroys anything it touches. The reason education is so expensive is BECAUSE of government intervention. Look to the federal reserve and government policies for the high cost of tuition.
When the federal reserve creates artificially low interest rates, people and businesses make risky "mal-investments" they wouldn't normally make with higher interest rates. Why? Because with low rates, you have less to pay back, assuming it is a fixed rate. Now throw in the government sponsored enterprises (GSE), like Sally Mae, whose cheap student loans are backed by the government and all lending standards go away. Basically, the government tells Sally Mae that if a student defaults on the loan, the government will pay it back for the student so there is zero risk to Sally Mae. If there is no risk, then they will lend $100K or $200K to a 19 year old kid with no income, effectively giving them a mortgage without the house. Colleges know that these kids have no trouble getting these loans so they take advantage of the situation and raise tuition so they can make a bigger profit.
This wouldn't happen in a truly free market because the government wouldn't be there to give the bank money if a student fails to pay their loan. Therefore, if the bank had potential to lose out (risk), they would think twice to make the loan. Not one bank would lend a kid $100K or even $30K with no income, and no credible plan to pay it back. The money wouldn't be there so colleges would be forced to lower tuition just to get students to enroll or else nobody would attend and the college would go under.
This is the almost the exact same way the housing bubble happened and popped. Just replace Sally Mae with Fannie Mae & Freddy Mac.
"I'm from the government and I'm here to help." We all know that is a joke because the government doesn't help, government destroys anything it touches. The reason education is so expensive is BECAUSE of government intervention. Look to the federal reserve and government policies for the high cost of tuition.
When the federal reserve creates artificially low interest rates, people and businesses make risky "mal-investments" they wouldn't normally make with higher interest rates. Why? Because with low rates, you have less to pay back, assuming it is a fixed rate. Now throw in the government sponsored enterprises (GSE), like Sally Mae, whose cheap student loans are backed by the government and all lending standards go away. Basically, the government tells Sally Mae that if a student defaults on the loan, the government will pay it back for the student so there is zero risk to Sally Mae. If there is no risk, then they will lend $100K or $200K to a 19 year old kid with no income, effectively giving them a mortgage without the house. Colleges know that these kids have no trouble getting these loans so they take advantage of the situation and raise tuition so they can make a bigger profit.
This wouldn't happen in a truly free market because the government wouldn't be there to give the bank money if a student fails to pay their loan. Therefore, if the bank had potential to lose out (risk), they would think twice to make the loan. Not one bank would lend a kid $100K or even $30K with no income, and no credible plan to pay it back. The money wouldn't be there so colleges would be forced to lower tuition just to get students to enroll or else nobody would attend and the college would go under.
This is the almost the exact same way the housing bubble happened and popped. Just replace Sally Mae with Fannie Mae & Freddy Mac.
Comments
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they also took alot of programs out of the schools so u would have to rely on collage like shop class
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Academically speaking, American colleges are among the best, but....the price and all that is a problem
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I believe a good education is important too but I believe it is best left to the private sector
Okay look at the countries that don't have public education systems.
Now look at the ones that do.
You're wrong. -
Academically speaking yes we're great but it kinda sucks how u gotta pya an average of 20,000 a year while north of the border students pay 3,000. no debt when they find a job, its sickening
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lol @ 3,000.... thats for college
university is pricy as ? up here
naw its really not not at the uofm buddy, or the uofw, it depends which province u go to n ur in BC right? isnt it 10,000 a year over there at UBC? u cant go wrong when american spay double that -
lmao my bad i jus looked it up n schools in BC are 5,000 a year, in fact college is more expensive then university in Canada...oddly enough, because the hands on programs run for a year or two and u get into the workforce faster but u have to put in hours.
Ice stop misrepresnting canada, im tryna make it look good because it is n u over here tryin to say its expensive when u dont even know what expensive is of course ur gonna think it is because youve never seen prices in the US, u grew up in BC all ur life..
