Posts Tagged ‘Cost of Higher Education’

College tuition and the anti-radical backlash

May 5, 2022

Will Bunch, a writer for the Philadelphia Inquirer, links the high cost of college education today to the conservative backlash against the student protesters of the 1960s.  Here is his argument.

The 1944 G.I. Bill signed by Franklin Roosevelt included a free college benefit almost as an afterthought, since academic and political leaders thought that most returning troops wouldn’t be “college material,” in an era when only 5% of Americans earned bachelor’s degrees and a majority didn’t finish high school.  Instead, the mostly working-class G.I. Bill recipients stunned the nation both in their large numbers and their devotion to taking classes. It was the start of a virtuous cycle that flowed into the unprecedented prosperity of the 1950s and the booming birth rate. By 1960, the rate of American youth heading off to college had skyrocketed six-fold to 31%

Kent State shooting

Yet this new American ideal of college wasn’t just a numbers racket. In the mid-20th century, the nation had emerged from a Great Depression, two world wars, and the arrival of the atomic bomb.  Thought leaders wondered if the concept of liberal education — geared toward developing critical thinking and not just rote career training — could steer America away from fascism, communism, and nuclear war.

Young Americans in the 1950s and ‘60s embraced this idea. Enrollment in the humanities and social sciences soared. In one 1969 survey of freshmen, 82% said what mattered about college wasn’t career training but “developing a meaningful philosophy of life.”  But for America’s so-called Establishment, the problem was what CIA agents would later label “blowback.”  Young people trained to venerate democracy and employ critical thinking turned their focus to America’s own hypocrisy — its senseless militarism in Vietnam, and racial apartheid in the Deep South, among other issues.

Top officials seemed less worried about the uproar at elite campuses like Columbia and more concerned about radicalism at the massive state universities —Berkeley or New York State’s university at Buffalo — that had exploded with working-class kids taking advantage of low (or free) tuition. They also nervously eyed rising enrollment and protests at HBCUs like Mississippi’s Jackson State University, where cops would murder two Black students on May 15, 1970.

Kent State skyrocketed from 5,000 students in 1954 to 21,000 by 1966, many of them kids of factory workers whose idealism had been forged in the New Deal-era union activism. By 1970, students exhausted by watching their neighbors return from Vietnam in body bags gravitated toward radical groups like Students for a Democratic Society, or SDS. The final trigger was then-President Nixon sending U.S. troops into Cambodia, which led to Kent State protesters burning down the ROTC building, which caused Ohio’s governor to call up the National Guard.

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Student debt may be dischargeable in bankrupcy

July 22, 2021

‘The Trillion-Dollar Lie by Matt Taibbi for TK News.  “Universities built palaces and financiers made fortunes in part through a lie: that student loans can’t be discharged in bankruptcy.  But a series of court cases is helping unravel the scam.”

For years, it was believed that .. [the Bankruptcy Act of 2005] absolutely closed the door on bankruptcy for whole classes of borrowers, and one in particular: students.  Nearly fifteen years after the bill’s passage, journalists were still using language like, “The bill made it completely impossible to discharge student loan debt.”

Even I did this, writing multiple features about student loans stressing their absolute non-dischargeability, which is one of the reasons to write this now — I got this one wrong.

In 2017, I interviewed a 68 year-old named Veronica Martish who filed for personal bankruptcy — as I put it, “not to get free of student loans, of course, since bankruptcy protection isn’t available for students” — and described her being chased by collectors to her deathbed. “By the time I die, I will probably pay over $200,000 toward an $8,000 loan,” she said. “They chase you until you’re old, like me. They never stop. Ever.”

In fact, the bankruptcy situation was murky.  Beginning in the 2010s, judges all over the U.S. began handing down decisions …. that revealed lenders had essentially tricked the public into not asking basic questions, like: What is a “student loan”?  Is it anything a lender calls a student loan?  Is a school anything a lender calls a school?  Is a student anyone who takes a class?  Can lenders loan as much as they want, or can they only lend as much as school actually costs?  And so on.

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‘Remind me why socialism is so great again’

February 22, 2018

Economist Mark J. Perry, who posted this chart on the American Enterprise Institute’s Ideas blog, argued that prices are highest in the economic sectors that are most heavily regulated.

Said he:  “Remind me of why socialism is so great again.”

One possible explanation of the price difference is Baumol’s Cost Disease, the tendency of the cost of human services to rise relative to the cost of manufactured goods.  That’s not the whole story.

The fact is that European countries that most Americans would consider socialist have free or affordable medical care and free or affordable higher education.   And it is not a case of costs being shifted from patients and students onto taxpayers.

Overall costs of health care and higher education are less in so-called socialist European countries (I write “so-called” because most of them have self-described conservative governments).

The reasons why health care costs less in those European countries than in the USA is that there are no for-profit insurance companies standing between the patient and the physician, that European countries control prescription drug prices and that the incomes of physicians and other health care providers are less.

My guess is that European universities cost less because they provide a no-frills education without spending huge sums on sports stadiums and student amenities.  My other guess is that their hospitals and universities are not so top-heavy with highly-paid administrators.

In and of itself, government regulation is neither good nor bad.  It depends on what is being regulated, how it is being regulated and in whose interest it is being regulated.

LINKS

Chart of the day (century?): Price changes 1997 to 2017 by Mark J. Perry for AEI Ideas.

Mark Perry Has Never Heard of William Baumol by ProGrowth Liberal for Angry Bear.