[HN Gopher] College financial aid is a sham based on what colleg...
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       College financial aid is a sham based on what colleges think
       families will pay
        
       Author : tekdude
       Score  : 33 points
       Date   : 2022-07-25 18:16 UTC (4 hours ago)
        
 (HTM) web link (slate.com)
 (TXT) w3m dump (slate.com)
        
       | closeparen wrote:
       | The accounting labels are different, but structurally what's
       | going on here is as if college were publicly funded by
       | progressive taxes, except that "unfortunately" the cost tops out
       | instead of scaling with income forever.
        
         | s1artibartfast wrote:
         | It is what happens when you have an unlimited demand more for
         | services and cost controls.
         | 
         | You can provide a world-class education in a bungalow or you
         | can provide it in a marble Hall with a plethora of ancillary
         | services and an army of Administrators to support them.
         | 
         | If the consumers don't fit the bill, they will always opt for a
         | more expensive service.
         | 
         | Add and lies about return on investment and a healthy dose of
         | fear of missing out, even those who have to take on debt to buy
         | the service we'll go along with it
        
       | sircastor wrote:
       | Yes. Universities, and higher education in general (in the US)
       | has optimized to capitalistic gains. And as a result the
       | institutions are happy to accept the funding guaranteed through
       | the government - this is actually preferable.
       | 
       | It should be easy and cheap to get a good, extensive education.
       | But again, optimized for capitalism, the institution favors
       | money.
        
       | xhkkffbf wrote:
       | Their model seems to be straight forward: fill out a form telling
       | us everything you own. Then, give it to us. And if we want more,
       | we'll give you a loan so you can keep emptying your pockets into
       | our coffers for long into the future.
        
       | frumper wrote:
       | Get government financing out of college tuition. Also remove
       | special protections to banks for private college loans. Colleges
       | are filled with smart people, they'll figure it out.
        
       | anonAndOn wrote:
       | It's called perfect price discrimination[0] because it maximizes
       | the profit for every sale. It's also unethical and illegal in
       | many circumstances but cleverly not for college tuition.
       | 
       | [0]https://www.myaccountingcourse.com/accounting-
       | dictionary/per...
        
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       (page generated 2022-07-25 23:02 UTC)