Surprise! Universities will raise tuition in response to Biden's "loan forgiveness" scam

[marvin martian]

File this under: "Things a five-year old could have seen coming"

Republicans will have A LOT of work to do cleaning up the Biden disaster.

• Joe Biden isn’t forgiving student loan debt, he’s subsidizing college tuition. This one-time giveaway is only going to raise tuition for future generations,” Mike Pompeo, former CIA director and U.S. Secretary of State, said on Twitter.
• Several experts told Fox Business that Biden’s plan is expected to cause an incline in college tuition prices and actually add to the inflation crisis.
• “Students will likely feel liberated to borrow more money on the assumption of future loan forgiveness, and universities will take advantage of the additional borrowing by raising tuition,” said Brian Riedl, a senior fellow in budget, tax and economic policy at the Manhattan Institute.
• “This is pretty similar to the fact that historically 60% of all student aid increases have been captured with tuition hikes, and this will be treated like an increase in student aid moving forward, which suggests that 60% will be countered by tuition hikes.”

Despite Biden Giveaway, College Tuitions Set To Soar 60%

Biden's Giveaway Means 60% Hikes Coming Soon

offthepress.com

 

[Polishprince]

Colleges would be sort of stupid if they didn't raise prices. Sleepy Joe's action means more money will be chasing the same amount of education, and you don't have to be an economics professor to guess the next step.

 

[Dekster]

It won't be the foregiveness that results in then. That only applies to debts prior to June of this year. The other proposal he announced the same day that would cap payments at 5% of discretionary income, cover any unpaid interest on an on-going basis, and discharge the rest after 20 years could cause colleges to try to inflate tuition. At the same time, dumb teenagers might not be agreeable to the 20 years because "that is like forever, man; like longer than I have already been alive, dude."

 

[marvin martian]

Colleges would be sort of stupid if they didn't raise prices. Sleepy Joe's action means more money will be chasing the same amount of education, and you don't have to be an economics professor to guess the next step.

That's how we know this "forgiveness" was just more corporate welfare for Biden's billionaire patrons in education and finance.

 

[BackAgain]

How could this possibly have been foreseen?

 

[candycorn]

You'd figure that college football would pay for all of this with the billions of dollars it brings in.

 

[Winston]

That's how we know this "forgiveness" was just more corporate welfare for Biden's billionaire patrons in education and finance.

The entire premise of this thread is economically ignorant. First, this doesn't create any "new money", it is forgiveness of money already spent and has no impact on a university's pricing power. Second, the argument that increased government involvement results in higher tuition does not pan out. In 1980 a Pell Grant covered more than 80% of the average tuition. Today, it doesn't even approach 30%. States have woefully underfunded their public universities, and loans have been used to cover the difference.

And the above claim, corporate welfare, how the hell does that even make sense? The banks put up the money, the government subsidizes the interest. When those debts are forgiven, the interest stops. The banks, "those billionaire patrons", LOSE MONEY, dumbass.

One of the biggest drivers of increased tuition is the reality that colleges are not places of higher education as much as they are now baby sitting services. Olympic pools, palatial student unions, outstanding food options, luxurious dorms. Take High Point University, 40 grand a year in tuition and not really sure why anyone would go there unless they were seeking a career in furniture. But they serve steak in the cafeteria and an ice cream truck travels through campus every day, the ice cream is free.

 

[BackAgain]

You'd figure that college football would pay for all of this with the billions of dollars it brings in.

No. You’d “figure” something that stupid.

 

[AZrailwhale]

You'd figure that college football would pay for all of this with the billions of dollars it brings in.

College professors used to be considered genteel poor, now they are upper class in income. Teaching used to be a calling, now it's big business.

 

[candycorn]

College professors used to be considered genteel poor, now they are upper class in income. Teaching used to be a calling, now it's big business.

College professors should make a nice income. Paying football and basketball coaches tens of millions of dollars a year at a state university should be a non-starter. The costs are great, the impact on the students is negligible, and most importantly the facade that the money spent is an investment in the university has been proven to be laughable

 

[struth]

this was a double wham for the demafasict…an attempt to buy votes from young people with loans, and bailout to their professor base as well…

 

[LeftofLeft]

You'd figure that college football would pay for all of this with the billions of dollars it brings in.

Nationalize the NCAA. “Take” all of the money. See how far and long that goes. That actually would be the catalyst to ignite a feeder football league for the NFL.

 

[Missouri_Mike]

If this is how these loans are going to go then I’m signing up for a student loan next year. I have no intention of going. I’ll just take my ten grand and then let it be forgiven. I hope next year it goes to 20k I’ll be signing up for that too.

 

[candycorn]

And we all know that college costs never rose a penny until Biden became President. LOL

 

[Missouri_Mike]

And we all know that college costs never rose a penny until Biden became President. LOL

They started with guaranteed government backed loans. How do you not know this?

 

[22lcidw]

You'd figure that college football would pay for all of this with the billions of dollars it brings in.

A good start is to let people choose the basic cable stations they want without charging for them. The cable sports networks will than become premium or their price will rise for subscribers and those who want it will pay for it.

 

[Polishprince]

College professors should make a nice income.

Depends on their field of expertise.

If someone is professor of proctology, sure he should be paid a salary comparable to what he would in private practice, which is a good amount.

But if someone is a professor of gender studies or German polka, their outside opportunities are a lot more limited so $15-$20 an hour would be competitive.

 

[candycorn]

Depends on their field of expertise.

If someone is professor of proctology, sure he should be paid a salary comparable to what he would in private practice, which is a good amount.

But if someone is a professor of gender studies or German polka, their outside opportunities are a lot more limited so $15-$20 an hour would be competitive.

Oh lord.

You guys really hate "gender studies".... Is it the INCEL in you talking or are you just generally stupid?

 

[Polishprince]

Oh lord.

You guys really hate "gender studies".... Is it the INCEL in you talking or are you just generally stupid?

I don't "hate" gender studies at all.

I just recognize that there isn't much demand for the field in the private sector, so its pointless for a university funded by the taxpayers directly or indirectly to pay big bucks for experts in the field.

 

[candycorn]

I don't "hate" gender studies at all.

I just recognize that there isn't much demand for the field in the private sector, so its pointless for a university funded by the taxpayers directly or indirectly to pay big bucks for experts in the field.

Almost the same demand for a left tackle or power forward, no?