[HN Gopher] Some colleges will soon charge $100k a year - how di...
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       Some colleges will soon charge $100k a year - how did this happen?
        
       Author : gnicholas
       Score  : 80 points
       Date   : 2024-04-05 17:46 UTC (5 hours ago)
        
 (HTM) web link (www.nytimes.com)
 (TXT) w3m dump (www.nytimes.com)
        
       | pydry wrote:
       | Staggering levels of wealth inequality
        
         | umeshunni wrote:
         | It's amazing how the highest rates of inflation are in the
         | industries that are most affected by government intervention
         | (housing, education, healthcare)
        
           | ceejayoz wrote:
           | They're also the industries whose providers know you can't
           | really go without.
           | 
           | US healthcare and education is _abberantly_ expensive
           | compared to the rest of the OECD, most of which regulate them
           | _more_.
        
           | dwallin wrote:
           | I know you only implied it but be careful with causation
           | here. We know that there are situations where the free-market
           | does not lead to ideal outcomes. Does it not seem likely for
           | government to involve itself more in areas where the free
           | market is most likely to fail?
        
             | complianceowl wrote:
             | You mean like involve itself in housing by requiring the
             | industry to grant a certain amount of home loans to make
             | the "American Dream" a reality, thereby creating a housing
             | market bubble, then when the bubble popped and tanked the
             | economy, blamed it on the banks?
        
           | ushiroda80 wrote:
           | This happens in the USA. The regulation is pushed by private
           | companies to increase cost of market entry ( I.e. decrease
           | competition) Japan has none of the crazy inflation in these
           | categories. The other key variable is these are core
           | essential needs hence people will continue to pay.
        
         | readthenotes1 wrote:
         | Staggering levels of debt funding backed by the inability to
         | bankrupt one's way out of it.
        
         | jgalt212 wrote:
         | subsidized student loans don't make education cheaper, it
         | increase the ability to pay (adjusting for demand elasticity).
         | 
         | The same goes for the housing market. Govt interventions has
         | only made home prices more expensive vis a vis other items we
         | may consume.
        
         | next_xibalba wrote:
         | Please explain the details of how wealth inequality causes
         | extreme inflation in higher ed prices. I've yet to see wealth
         | inequality fingered as the culprit.
        
           | fire_lake wrote:
           | Some people have several orders of magnitude more to spend
           | giving their offspring an advantage. It's worth it too, due
           | to massive inequality in job market.
        
       | skadamat wrote:
       | After being frustrated for many years by the rising cost of
       | college, I've internally decided to flip the questions.
       | 
       | - Why _would_ college tuition decrease?
       | 
       | - What's actually stopping the elite schools from doubling their
       | tuition in a single year?
       | 
       | - What forces would actually cause colleges to lower their
       | tuition?
       | 
       | It's unfortunately really hard to find good answers here IMO with
       | the layout of the current "market conditions" for colleges that
       | we've setup in America.
        
         | d--b wrote:
         | Because not everything in life should be driven by optimizing
         | profit?
        
           | stuartjohnson12 wrote:
           | This is a normative claim, which therefore cannot answer
           | questions about what is, or what could be.
        
           | BriggyDwiggs42 wrote:
           | Parent comment is probably not arguing in favor of overpriced
           | college, just saying the situation won't resolve naturally
        
             | d--b wrote:
             | I'm saying it may resolve naturally, if any of the
             | overpriced university decides that over charging for
             | education is not in line with their ethics.
        
         | colechristensen wrote:
         | Reduce the amount students can borrow for college, that's it.
         | If you give people ever increasing amounts of money to acquire
         | something that society convinces them they need, the price will
         | keep going up as the loan money available goes up.
         | 
         | It's just being sucked into bullshit administration and
         | infrastructure costs.
         | 
         | A university could be a few dozen professors, zero admin
         | besides secretaries for the professors, and having the
         | professors share whatever small organizational tasks are
         | actually necessary.
         | 
         | Like think of how you would run a startup university. Do as
         | little as possible outside of actual teaching and research,
         | charge tuition to cover costs which would be much lower.
         | 
         | There's not any competition though. So it's not happening.
        
           | pc86 wrote:
           | I agree with the general thrust of your argument but it's
           | oversimplifying the causes. A real university would not be
           | able to run with just professors and secretaries, that's
           | ludicrous. You need some administration to handle compliance,
           | organization, finance, etc. You can both acknowledge the
           | objective reality that a university is a complex organization
           | that needs administration _and_ that most universities today
           | have 3-4x more administrators than they need.
        
           | newaccount74 wrote:
           | I studied at a "startup university" that had just a few dozen
           | professors. The total number of employees was still more than
           | 100, and it wasn't all "bullshit administration".
           | 
           | There were assistants to the professors (1 assistant per 3
           | professors), the bigger research groups had post docs and lab
           | technicians, there was an IT team (3 people), there was one
           | person responsible for the sign up formalities of the
           | students, a director of the institute, his assistant, one HR
           | person, 3 or 4 people in the cafeteria, cleaning staff, head
           | of microscopy lab, some scientific support technicians,
           | people feeding rats and mice in the life science facility, a
           | few people in the machine shop, a librarian (library was
           | digital only; still took a dedicated person who made sure
           | everyone got access to the literature they need), and those
           | are just the people I met and remember.
           | 
           | That university only offered PhD programs, so there were only
           | few lectures. If you wanted to do undergraduate courses as
           | well, you'd need a lot more people than that.
           | 
           | Universities just need a lot of staff.
        
           | gnicholas wrote:
           | That sounds somewhat like the university of austin, or
           | whatever it's called. They're launching this fall and trying
           | to get accredited. It will be interesting to see how that
           | plays out.
        
           | miki123211 wrote:
           | > and research
           | 
           | Why research? Why not go further and cut that bit out and
           | just leave teaching?
           | 
           | I'm not convinced that the best place to teach student is
           | necessarily the best place to do research at, and I'm pretty
           | sure that your competence at being a good researcher has very
           | little to do with your competence at being a good teacher.
        
         | pc86 wrote:
         | #2 and #3 both have simple answers - "Nothing," and "Eliminate
         | the free money buffet of federally guaranteed loans that can't
         | be discharged by anything short of death."
         | 
         | "Eliminate 80% of administrators" would also help with #3 but
         | there's no incentive to do that, especially without the more
         | direct answer to #3 happening first.
        
         | Tiktaalik wrote:
         | Just in general I would like to say that flipping the question
         | like this is a great way to look at all aspects of a problem.
         | Similarly "why would the price of housing decrease?" etc
        
         | lukas099 wrote:
         | > What's actually stopping the elite schools from doubling
         | their tuition in a single year?
         | 
         | If a school doubled tuition, it would be less competitive and
         | fewer of the best students would choose to apply and enroll
         | there. That would make that school less elite.
         | 
         | > What forces would actually cause colleges to lower their
         | tuition?
         | 
         | Increased supply and/or lowered demand.
        
           | pc86 wrote:
           | Harvard could triple its tuition and the same people are
           | going to apply to Harvard.
        
             | gnicholas wrote:
             | This would be true for those whose contribution would be
             | capped based on parental earnings/assets, since their
             | effective price would not increase. And it would be true
             | for extremely wealthy folks whose parents can spend $1M on
             | college and not worry about it. But for the marginal
             | applicants who would be paying full freight under the old
             | price but can't easily toss out another $150k/yr on
             | tuition, there would definitely be a drop in application
             | rates.
        
             | finolex1 wrote:
             | They might apply, but certainly won't attend if they are
             | admitted to Stanford, Yale, etc. The higher the price
             | differential, the more likely people would be willing to
             | take a 'prestige' hit and go to the lower cost school.
             | 
             | Anyone applying from a family making 400k a year (top 2%)
             | would still be sensitive to an 80k vs 240k/year sticker
             | price change.
        
               | TuringNYC wrote:
               | Operation Varsity Blues
               | (https://en.wikipedia.org/wiki/Varsity_Blues_scandal)
               | suggests there are plenty of individuals willing to pay
               | plenty more. Some would even break the law and risk
               | prison. If it were legal, probably many more would pay.
               | 
               | There are just the people who got caught!
        
               | pquki4 wrote:
               | Hypothetically -- what if Stanford and Yale etc also
               | triple their tuition at the same time?
        
         | bnralt wrote:
         | > - What forces would actually cause colleges to lower their
         | tuition?
         | 
         | Decoupling education from certification would work. Most people
         | are willing to pay so much for college because they need
         | certification; they're forced to pay for the education, whether
         | or not they actually learn anything.
         | 
         | The Federal government could mandate that any school that's
         | eligible for funds has to make the certification open to
         | anyone, and also make sure that the certifications themselves
         | around coupled together (you don't need a certification in Art
         | History to get certified in Biochemistry). If people can pass
         | the Harvard certification for, say, Harvard Astrophysics, then
         | they get a Harvard Astrophysics degree the same as someone who
         | took classes at Harvard and passed the certification.
         | 
         | It's known that bundling items together is usually a good way
         | to force people to buy things they don't want. People talk
         | about this all the time when it comes to cable bundles. But our
         | higher education system is based on bundling a lot of things
         | together, so when people are trying to acquire what they need,
         | they're forced to pay for many things they don't.
        
           | OkayPhysicist wrote:
           | The resulting certifications would be worth approximately the
           | same amount as the existing online-only degrees. Basically
           | ticking the box for "college educated", but be passed over on
           | any further scrutiny than that.
           | 
           | Because the selling point of prestigious schools is the
           | filtering and networking.
        
           | totalhack wrote:
           | I'm not opposed to any attempt to remove the need for these
           | full college degrees as a hiring requirement, but this also
           | ignores that the point of many colleges is the network. You
           | are paying to be part of a club.
        
           | miki123211 wrote:
           | I don't think you're wrong, but I think that food and
           | accommodations would be better places to start the unbundling
           | with.
           | 
           | A lot of US schools require you to live on campus and pay for
           | campus food, which is a perfect example of bundling if there
           | ever was one. As a European, the fact this is legal seems
           | absurd and ridiculous to me.
        
         | red-iron-pine wrote:
         | > _- Why would college tuition decrease?_
         | 
         | in theory, because of a few factors
         | 
         | 1) more kids doing online, or community college, degrees
         | 
         | 2) more people opting to go into the trades, as AI eats
         | knowledge workers and the cost-benefit doesn't make sense; or
         | else skipping and going straight to certifications for things
         | like IT
         | 
         | 3) legal or structural changes impacting how many international
         | and out-of-state students are allowed. many public universities
         | operate at a loss for locals, but subsidize those costs with
         | higher fees for out of state and international students.
         | 
         | 4) the gub'mnt finally gets around to rejecting or capping a
         | lot of student loan applications
         | 
         | Been seeing a lot of chat about #1 and #2, but until the last
         | two get changed I don't think anything will drastically improve
        
         | nameless912 wrote:
         | > - Why _would_ college tuition decrease?
         | 
         | The only answer I can think of is strong and swift government
         | regulation, and there's no appetite for that, so...I dunno man.
        
         | gnicholas wrote:
         | Tuition could decrease because of the growing sense that
         | college is not 'worth it'.
         | 
         | > _A poll published in 2022 asked parents if they would rather
         | their child attended a four-year college or a three-year
         | apprenticeship that would train them for a job and pay them
         | while they learned. Nearly half of parents whose child had
         | graduated from college chose the apprenticeship._ [1]
         | 
         | > _Nearly half of parents say they would prefer not to send
         | their children to a four-year college after high school, even
         | if there were no obstacles, financial or otherwise. Two-thirds
         | of high-school students think they will be just fine without a
         | college degree._ [1]
         | 
         | When there is a large change in the demand for a product, the
         | price often drops.
         | 
         | 1: https://www.wsj.com/us-news/education/why-americans-have-
         | los...
        
         | Manuel_D wrote:
         | You'd think that college tuition would decrease in the US
         | because university enrollment has actually been on a downward
         | trend for over a decade. However, in the US university
         | primarily serve as social signalling and an elite prestigious
         | university is a very different type of product than a typical
         | university (most of which are not particularly exclusive,
         | admitting over 70% of applicants).
         | 
         | Presumably, competition prevents this. It would really depend
         | on the applicants' other options. Between attending Vanderbilt
         | at $200K per year and a moderately less prestigious state
         | university for about an order of magnitude less a lot of
         | students would pick the latter. The university could admit more
         | students that are willing to pay the doubled tuition, but
         | that'd probably result in lower graduate quality.
         | 
         | I'm not sure what could make elite universities lower their
         | tuition save for legislation. As the Varsity Blues scandal
         | demonstrated, families are willing to pay huge sums of money to
         | get their kids into elite university. Besides laws, the only
         | other answer I can think of is to reduce the prestige of elite
         | universities. If an Ivy League, Stanford, or MIT diploma ceases
         | to confer so much advantage in academia and the labor market
         | then their ability to charge large sums would go down.
        
         | fancyfredbot wrote:
         | This is a great question.
         | 
         | - Why would college tuition decrease?
         | 
         | 1) College tuition would decrease if it led to increased profit
         | for the college. This could happen for many reasons including
         | the case that they can't find enough students willing to pay.
         | 
         | - What's actually stopping the elite schools from doubling
         | their tuition in a single year?
         | 
         | 2) Mostly the fear that it would reduce profits - for example
         | through bad publicity, increased regulation, or an inability to
         | find students willing to pay
         | 
         | -What forces would actually cause colleges to lower their
         | tuition?
         | 
         | 3) market forces - on the demand side a decrease in students
         | willing to pay, or maybe on the supply side an increase in
         | competition for students. Or maybe government/regulatory
         | interventions. Or possibly even a reduction in the costs of
         | providing education.
        
           | dan-robertson wrote:
           | What does it mean for a school like Harvard to make a profit?
           | Why do they want to do that?
        
             | StressedDev wrote:
             | They won't call it a profit. What they will do is spend as
             | much as they can on salaries (especially for the senior
             | employees), increasing the size of the administration (more
             | jobs for insiders), buildings, sports, etc.
             | 
             | Basically, people think non-profit means the organization
             | works for the public or puts the public first.
             | Unfortunately, what it often means is money goes to
             | employees and insiders instead of shareholders. For
             | colleges, it means the students (and the Federal Government
             | which issued the student loads) comes last and the
             | college's employees come first. Not great public policy.
        
               | kristopolous wrote:
               | This is why running things that aren't a business "like a
               | business" is profoundly dangerous and destructive and
               | anybody advocating it should be dismissed as
               | ideologically driven.
        
               | dan-robertson wrote:
               | I can see the logic of administrators wanting to spend
               | money on their own remuneration, but why should they care
               | about building new buildings?
        
             | fancyfredbot wrote:
             | https://finance.harvard.edu/financial-overview
             | 
             | "The University ended fiscal year 2023 with an operating
             | surplus of $186 million compared to $406 million in fiscal
             | year 2022, on an operating revenue base that increased 5%
             | or $262 million, to $6.1 billion. The reduced surplus was
             | not unexpected and was driven primarily by expenses
             | associated with renewed return to campus activity and
             | strategic investments in our workforce, with increased
             | compensation for faculty and staff, a decrease in vacancy
             | rates, and overall growth in new workers across campus."
        
               | dan-robertson wrote:
               | Sure, but that money isn't going to shareholders is it?
               | Why would the school's management want to make that
               | number bigger?
        
         | quickthrowman wrote:
         | > - Why would college tuition decrease?
         | 
         | The single change that would cause the largest downward
         | pressure on college pricing would be removing federally
         | subsidized student loans.
        
         | TuringNYC wrote:
         | >> - What's actually stopping the elite schools from doubling
         | their tuition in a single year?
         | 
         | It is effectively double -- the rest of the "tuition" is legacy
         | contribution. There is an entire standard contribution schedule
         | based on how many years out of college you are. Many legacy
         | parents pay hoping this gets their children into the school
         | when the time comes.
        
       | tekla wrote:
       | Mostly because we allow easy loans for students who don't read
       | the paperwork.
       | 
       | We need to stop giving out easy loans to anyone who asks. The
       | schools will lower prices if people can't afford it via a loan.
        
         | orthecreedence wrote:
         | > We need to stop giving out easy loans to anyone who asks.
         | 
         | Right, by not having student loans backed by the federal
         | government. As it stands now, if you put glasses on a dog he
         | could get a student loan because lenders have no incentive to
         | scrutinize the debt. The federal government collects for them.
         | 
         | We're pushing people with absolutely no financial experience
         | and no financial training to sign up for debt they can never
         | get rid of without what's effectively economic indentured
         | servitude.
        
         | nothercastle wrote:
         | I don't have any issue with easy loans just make them
         | dischargable so banks have skin in the game
        
           | tekla wrote:
           | Why would ANYONE agree to service that? It's an insane
           | proposal.
        
       | philip1209 wrote:
       | Federal student loans broke the market. People became price-
       | inelastic.
        
         | silverquiet wrote:
         | What is your price elasticity for your childrens' future?
        
           | cj wrote:
           | > What is your price elasticity for your childrens' future?
           | 
           | This is a silly question.
           | 
           | Silly answer: I would want my kid to be able to retire
           | happily. If college debt prevents that, let's ditch it.
        
           | brk wrote:
           | Your comment highlights what I personally think is some of
           | the reason for the extreme tuition increases: too many people
           | believe that college is the singular best path for their
           | children's future.
        
             | ceejayoz wrote:
             | Including, unfortunately, the vast majority of employers
             | and human resources people those children will encounter
             | when attempting to get a job.
        
             | silverquiet wrote:
             | I don't have kids, but I believe it. I have several close
             | family members whose biggest regret is that they didn't go
             | to college.
        
             | BobaFloutist wrote:
             | It (still), mathematically is.
             | 
             | The return on the investment of a college degree is
             | absolutely worth it.
             | 
             | What's becoming much less clearly worth it is the value add
             | of going to an elite school over a state school.
        
             | tekla wrote:
             | College was/is/remains one of the biggest factors in
             | determining incoming levels and general success in life.
        
           | 999900000999 wrote:
           | I can think of a much better use of 400k. I went to community
           | college and a cheap state school and I make good money.
           | 
           | Colleges don't refund you if you can't finish or get a decent
           | job afterwards.
           | 
           | The system as is doesn't make alot of sense. Just running
           | though Harvard's cost calculator, if you have a family income
           | of 300k you're out 86,666$. Drop that down to 175k and it's
           | only 26k.
           | 
           | Given how bad the tax rates are at that level you might as
           | well have one parent play golf all day.
           | 
           | 300k is a very reasonable amount for two typical people.
           | After income taxes takes 100k off top( assume a high tax
           | state like Hawaii), you're talking about spending more than
           | 1/3rd of your take home on one child's education.
        
             | silverquiet wrote:
             | > 300k is a very reasonable amount for two typical people.
             | 
             | It's literally four times the median household income of
             | the US. (And even after inflation, bananas still don't cost
             | anywhere near $10 two decades on after that joke was made).
             | This sort of statement is a bit out of touch if you ask me.
             | 
             | Here's where I'm certainly willing to accept that I'm a bit
             | out of touch - I don't have children. So my question is,
             | how much would you be willing to pay if you _thought_
             | something would give them a significantly better future?
        
               | 999900000999 wrote:
               | How will anyone have an extra 86k on a 300k a year salary
               | ?
               | 
               | The numbers just don't make sense. I don't have kids so
               | I'll probably cross that bridge if I get to it, but
               | there's a limit.
               | 
               | You can have a great future with community college +
               | state school.
        
               | silverquiet wrote:
               | If I math this out right $300K - $100K taxes (your
               | estimate) - $86K tuition = $114K which is still a lot
               | higher than the median household income (which I'm pretty
               | sure is still pre-tax). That said, I think you are onto
               | something - these schools are for the elite; not the
               | merely well-to-do or below.
               | 
               | I also went to state school, so I'm not really dissing
               | the thing, though people here would probably laugh at me
               | if I said how much money I make, so maybe your mileage
               | may vary on that one. But my perception (which could
               | certainly be mistaken) is that the elite degrees actually
               | have a huge premium, which is why there is so much
               | competition for them.
        
               | 999900000999 wrote:
               | 114k isn't going very far in an expensive city. Plus a
               | ton of people aren't doing great.
               | 
               | For example in LA the average income is only 76k.
               | 
               | https://www.census.gov/quickfacts/fact/table/losangelesci
               | tyc...
               | 
               | At that point you'll never be able to afford to buy a
               | home which used to be a Hallmark of the middle class.
               | 
               | It wouldn't be possible for a family making 300k to pay a
               | mortgage in LA and send a kid to Harvard.
        
               | silverquiet wrote:
               | Then they'd have to choose one or the other. My parents
               | told me in no uncertain terms that there was no money to
               | send me to private school, so I didn't apply to them; I'm
               | also quite allergic to debt.
               | 
               | I had a paper pointed out to me recently that I found
               | enlightening.
               | 
               | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5222535/
               | 
               | > The recent proliferation of studies examining cross-
               | national variation in the association between parenthood
               | and happiness reveal accumulating evidence of lower
               | levels of happiness among parents than nonparents in most
               | advanced industrialized societies.
               | 
               | It seems that the pressures we place on parents as a
               | society have grown as we've advanced. I certainly am not
               | built to deal with that kind of stress, and given the
               | dropoff in fertility, I think that that's a more common
               | view these days.
        
               | 999900000999 wrote:
               | I took a much different route. I barely got out of
               | highschool ( although I was at the point where I would of
               | taken a GED test and walked out).
               | 
               | Then I did well in community college, couldn't afford my
               | last year of college, dropped out. Worked for a very cool
               | startup for a bit, and I was making a very respectable
               | salary without a degree.
               | 
               | Eventually I finished my degree at a very cheap state
               | school, but it hasn't really mattered. My major is in
               | some unrelated non sense. Gets me past HR filters though.
               | 
               | Ultimately I just really love programming, I learned
               | enough to get my first job with an old laptop. I reckon
               | anyone with a 100$ laptop ( install Linux on whatever you
               | can find on eBay) can learn programming for free.
               | 
               | My real belief is college is a nice to have, but
               | shouldn't be required to start a career. If anything I
               | think most people should take a bit of time to work and
               | figure out what they enjoy before commiting to school.
        
               | astura wrote:
               | >This sort of statement is a bit out of touch if you ask
               | me.
               | 
               | Just a bit? It's wildly out of touch, $300,000/year is
               | literally the 95th percentile of income for families[1].
               | Dude called income that's more than 95 PERCENT of the
               | population "a very reasonable amount for two typical
               | people."
               | 
               | Fucking hell!
               | 
               | [1] https://dqydj.com/household-income-percentile-
               | calculator/
        
         | giantg2 wrote:
         | "People became price-inelastic."
         | 
         | Isn't it the opposite? The tutution became increasingly
         | inelastic. Consumers would technically be more elastic given
         | the higher credit available.
        
           | t_mann wrote:
           | https://en.wikipedia.org/wiki/Price_elasticity_of_demand
        
             | giantg2 wrote:
             | "A good's price elasticity of demand"
             | 
             | Yeah, so the tuition is more inelastic, not the people.
        
               | t_mann wrote:
               | technically, it's demand that is meant here by what's
               | elastic (or not). there's also a price elasticity of
               | supply (eg, if tuition goes too low, some colleges will
               | close).
               | 
               | the way the GP used the term was understandable to me,
               | and how I'm used to seeing it used. it's basically
               | shorthand for 'people's [demand for college degrees]
               | became price-inelastic'. if you want to use it
               | differently in your communication, it's up to you. just
               | remember that people might understand something other
               | than what you meant.
        
         | skhunted wrote:
         | Last year about 7.5 million people attended public 4 year
         | institutions and about the same number attended public two year
         | institutions. Around 5 million attended private institutions.
         | Over the last 25 years there has a been a steady decline in the
         | public funding of public higher education on a per student
         | basis.
         | 
         | Higher education is a large market and there are many, many
         | forces at play. Blaming a single item is too simplistic an
         | analysis.
         | 
         | https://nces.ed.gov/programs/digest/d13/tables/dt13_303.70.a...
        
           | pc86 wrote:
           | The number of students is irrelevant. The government will
           | secure your student loans and the only way you can get rid of
           | them _is to die_. When a school can basically decide how much
           | money they want, wave a magic wand and the money arrives in
           | their bank account, it 's going to skyrocket exactly like it
           | has.
        
             | skhunted wrote:
             | The number of students at public institutions vs. private
             | institutions does matter. You do not know much about how
             | higher education works. Public institutions generally can't
             | just raise tuition as they see fit. They usually need the
             | approval of state governments. Tuition has gone up at
             | public institutions as state funding has gone down.
        
         | jdeal wrote:
         | Federal loan limits for the first year of undergrad are $5,500
         | for dependents and $9,500 for independents, so they can't be
         | blamed for a single year costing $100K.
        
           | empath-nirvana wrote:
           | Private loans aren't dischargeable in bankruptcy.
        
         | acchow wrote:
         | Student loans became non-dischargeable. That broke the market.
        
         | bdjsiqoocwk wrote:
         | Wanna share why having loans make people price-ineslastic?
         | Mortgages are a thing and people aren't indifferent to house
         | prices.
        
           | gnicholas wrote:
           | Mortgages don't qualify for income-based repayment schemes or
           | forgiveness for govt/nonprofit employees.
        
           | quickthrowman wrote:
           | Mortgages must be paid on time or your lender will foreclose
           | on your home and liquidate it to pay off your debt.
           | 
           | That is impossible to do with an education. Add in loan
           | forgiveness and income based repayment from the sibling
           | comment, and the fact that a mortgage is securitized by
           | collateral and it's almost like a student loan and a mortgage
           | have nothing in common aside from being loans.
        
         | empath-nirvana wrote:
         | This problem would be solved immediately by making student
         | loans dischargeable in bankruptcy. The easy money would
         | evaporate and a lot of colleges would have to figure out how to
         | make money on lower tuitions.
        
       | spike021 wrote:
       | That's on top of every other expense like books, scantrons (not
       | sure if those are even used anymore), and whatever else.
       | Everything adds up for students.
        
         | jer0me wrote:
         | That price is inclusive of room, board, and other expenses.
        
           | spike021 wrote:
           | In my experience whenever prices were calculated that way
           | there would still be unexpected expenses.
        
       | leplen wrote:
       | Price discrimination in the form of scholarships and the "show us
       | exactly how much money is in your wallet" scam they call "need-
       | based-aid" allowing universities have essentially perfect price
       | discrimination and to gobble up the entire consumer surplus is
       | definitely a big part of it.
       | 
       | Imagine any other service where they demanded your bank
       | statements before they told you what they would charge you, and
       | the impact that would have on sticker price.
        
         | fishpen0 wrote:
         | Funny enough this is exactly how vendor engagement goes when
         | you are publicly traded. They can see your books more or less
         | and charge wildly different numbers to different companies. It
         | has nothing to do with how much you use the product or the
         | resources you'll use and everything to do with what they think
         | you are worth. We've had so many calls where we're like "brand
         | new product with team of 10 wants your thing" and they come
         | back with a high 6 figure saas contract. It's so fucking
         | annoying that they don't have to show their prices online and
         | can make all their customers sign pricing NDAs
        
           | exe34 wrote:
           | I suppose it's karma for all the companies that refuse to
           | publish the salary being offered for jobs upfront.
        
         | SkipperCat wrote:
         | I've always wondered why the family that pays full price for
         | tuition does not get the tax credit for their charitable
         | contribution to some other student whom they subsidize.
         | 
         | If I donated $20k to a university, I'd get to write that off as
         | a charitable contribution in my taxes. If I pay full tuition
         | and 1/3 of that goes to a student needing aid, I get no
         | deduction.
        
           | vernon99 wrote:
           | That's the only thing that bothers you? :) How about we
           | outlaw the price discrimination described in the parent
           | comment? I think everything else just pushed the conversation
           | deeper in the weeds and does us all a disservice.
        
             | gnicholas wrote:
             | So no more youth ticket prices, senior discounts, etc.?
             | Price discrimination is a very commonly-used tactic, and it
             | goes by many different names.
        
           | rendang wrote:
           | It's typically the opposite of what you say - the true
           | expenses/student that a private university pays is much
           | higher than even the richest kid pays (difference made up for
           | by the endowment's income)
           | 
           | So the better question is why they don't raise prices such
           | that the rich kids have to pay the true full price & have
           | more money for aid for the less-rich.
        
             | floor2 wrote:
             | No that's not the better question.
             | 
             | If private universities are truly spending so irresponsibly
             | and profligately that their sticker price isn't covering
             | their expenses, then their entire administration should be
             | thrown out and replaced. It's only incompetence or
             | corruption that could excuse such costs.
        
               | AgentOrange1234 wrote:
               | Throwing out the entire administration and then only
               | replacing a small fraction of it would work even better!
        
             | StressedDev wrote:
             | I have a hard time believing this. Every course I took in
             | college had at least 15 people and usually 30-50 people.
             | Large classes like Calculus 1-2, Linear Algebra, and
             | Differential Equations had at least 300 people. There is no
             | way you cannot pay the salary + legitimate overhead for 1
             | profess, and 1-10 TAs with these class sizes. My guess is a
             | lot of the money does not go to instruction but goes to
             | administration, sports palaces (stadiums), luxury dorms,
             | etc. Colleges used to be MUCH cheaper in the 1950s, 1960s,
             | and 1970s. The education was just as good but cost far
             | less.
             | 
             | The big problem with colleges today is they are "non-
             | profit" in name only. Instead, of giving profits to
             | shareholders, they are giving them to employees and
             | insiders. This hurts students and the United States.
             | However, colleges do not care because they, their
             | employees, and friends benefit.
        
             | lukev wrote:
             | Given a typical professor's salary, it is... difficult to
             | imagine that this is true, at least not without
             | fantastically bloated administrative and overhead costs.
        
               | CPLX wrote:
               | > fantastically bloated administrative and overhead costs
               | 
               | Indeed. Go check the trends on the ratio of non-teaching
               | staff to students at these major name colleges.
        
               | ckrapu wrote:
               | "non-teaching staff" includes all the research
               | scientists, postdoc, and techs that help make the
               | research happen. These universities are not especially
               | good at teaching compared to SLACs. They are
               | exceptionally good at research.
        
         | weitendorf wrote:
         | It's not just price discrimination, but the process of applying
         | and choosing a college is essentially an auction process
         | designed to benefit colleges over students. US colleges all
         | band together to participate in a single coordinated system
         | (FAFSA, college ranking systems, the common app, Early decision
         | rules, etc.) , acting almost like a cartel, so they get away
         | with it. If you view the college application process through
         | the lens of Mechanism Design you can see that colleges hold all
         | the cards and so the entire system is designed to their
         | benefit: https://en.wikipedia.org/wiki/Mechanism_design
         | 
         | What exactly is unfair about the process?
         | 
         | 1. The colleges which most heavily implement price
         | discrimination are the most desirable to attend and also tend
         | to accept large portions of their student body through Early
         | Decision applications that don't allow apply to most (not all)
         | of the other most desirable colleges. This means that accepted
         | ED applicants have no recourse beyond either accepting or
         | rejecting the proposed "aid package".
         | 
         | 2. Highly desirable colleges aim for high applicant "yield" for
         | rankings/planning, which in aggregate makes it so most of their
         | accepted students only get into one highly desirable college.
         | Even outside of early decision applicants, this puts applicants
         | in a bad bargaining position - they must choose between either
         | paying more for the ~single highly desirable college they got
         | into or less for a less desirable college.
         | 
         | 3. You cannot generally bid between colleges even if you got
         | into comparably desirable/expensive desirable colleges (you
         | can't tell Dartmouth and Brown that each is proposing a cost of
         | $40k/y and have them bid against each other). This is because
         | they essentially operate as a cartel. This limits downward
         | pressure on prices.
         | 
         | 4. The application process operates in rounds with fixed dates,
         | there aren't really do-overs within a given year, and waiting
         | for the next year changes the process (you're either a transfer
         | or gap year applicant). This puts a lot of pressure on
         | applicants to accept the least-worst option and doesn't give
         | them the ability to react to a bad outcome by eg applying to
         | more places after the fact.
         | 
         | 5. The acceptance criteria are opaque and in many cases
         | subjective (eg your application essays). Applicants need to
         | hedge their bets and deal with a lot of uncertainty. Any
         | accepted offer from a highly desirable college then feels like
         | a gift and not worth squandering/negotiating.
         | 
         | 6. As you mention, colleges know exactly how well you'll be
         | able to pay, and because they act as a cartel that disallows
         | bidding wars or negotiation + all the other forced
         | scarcity/time pressure I mentioned, they can essentially
         | extract as much from applicants as they want, up to their
         | sticker price.
         | 
         | It's worth mentioning that not all competitive colleges
         | participate in the cartel to the same degree as the Ivy League.
         | When I was applying to colleges, I remember MIT and Caltech had
         | Early Application (not Early Decision) processes, didn't make
         | applying in those rounds as beneficial as ED colleges, and
         | didn't have as many athlete/legacy "backdoors" as the Ivy
         | League.
         | 
         | I also remember that Duke and Vanderbilt offered full merit
         | scholarships to some students who might've received no need-
         | based aid, which I was fortunate enough to benefit from and am
         | extremely grateful for, even if it was probably a self-serving
         | policy to poach applicants away from the Ivy League/improve
         | yield.
        
           | meetingthrower wrote:
           | Beautiful reply. #3 can be pushed by aggressive negotiators,
           | but requires "like for like" schools to make a mistake. Then
           | you can leverage one school to ask for more money from
           | another.
        
         | meetingthrower wrote:
         | 100%. There are revenue management consulting firms that boast
         | of increasing price realization by 15%+ by managing admission
         | rates, communication patterns, and "scholarship grants" to
         | optimize bottomline price.
         | 
         | When the marginal cost of each student is probably $20K,
         | anything over that is awesome. So even if you give a $30k
         | "merit scholarship" to a full pay student you are making bank,
         | as you are still clearing $50K+ as a university.
         | 
         | Perverse outcome of this is that the richer students will get
         | more "merit aid."
         | 
         | Also, Ivy leagues + Stanford and MIT are a cartel, and don't
         | give merit aid. So they use the "need based" aid system to even
         | more increase their price realization from the richest folks.
         | 
         | (Ask me how I know: parent who went way too deep on this, and
         | is now stroking a $85K check to an ivy.... lol.)
        
           | gnicholas wrote:
           | What makes you say the marginal cost of each student is $20k?
        
             | danielheath wrote:
             | That number is preceded by the word "if", right?
        
               | gnicholas wrote:
               | It is not. I don't think it said "if" before, but it
               | certainly doesn't say it now:
               | 
               | > _When the marginal cost of each student is probably
               | $20K_
        
         | happytiger wrote:
         | It's the same system California is putting in place with
         | income-based energy billing.
         | 
         | Income-based billing is rife for abuse!
        
         | kristopolous wrote:
         | Traffic citations in some municipalities do this.
         | 
         | College shouldn't be structured like a punitive sacrifice for
         | poor behavior
        
       | xnx wrote:
       | We are at peak college tuition. AI is coming for higher
       | education. Not Ivy League at first, but starting with community
       | colleges and working its way up.
        
         | SkipperCat wrote:
         | I think it won't be AI that causes the collapse of university
         | attendance. It will be people deciding not to go to college.
         | 
         | Most people just want jobs. Many employers are finding out that
         | people with or without college educations can perform at their
         | tasks, think critically and do all the same functions at most
         | jobs. Ergo, folks will choose not to go into student debt
         | purgatory and just dive straight into the workplace.
        
         | tqi wrote:
         | > AI is coming for higher education
         | 
         | As long as hiring managers continue to give more weight to
         | resumes with name brand colleges, these universities will never
         | be threatened.
        
           | xhkkffbf wrote:
           | Some places like Google and many state governments are
           | publicly removing all requirements for college degrees.
           | Whether they still choose degree holders anyways is an open
           | question, but some are very openly proclaiming that it's not
           | a requirement.
        
         | xyst wrote:
         | the internet already made college irrelevant. The second wave
         | of AI is just cleaning it up.
         | 
         | While I was attending college in the 2010s. They were always
         | pushing "new buildings", "new rock wall climbing", "renovations
         | to college housing", "lazy river!". Apparently funded through
         | higher tuition and fees.
         | 
         | At some point, a college degree will no longer be required
         | which will be the death knell.
        
           | HDThoreaun wrote:
           | The point of college is signaling. The internet has no answer
           | for how to signal to employers.
        
             | tacocataco wrote:
             | How about employers pay to train their own employees?
        
       | api wrote:
       | How did this happen? Subsidizing demand without addressing
       | supply.
        
         | topspin wrote:
         | Subsidizing and augmenting demand. The State Department grants
         | about 500,000 F-1s every year. COVID curtailed that a little,
         | but the numbers have since recovered.
        
       | peter_l_downs wrote:
       | "How did this happen?" -- because the market will bear it. High
       | sticker price + financial aid for 65% of students just makes it
       | easier for a college to price discriminate, which is overall a
       | good thing. And as the article points out, most students don't
       | pay anywhere near as much as a Vanderbilt full tuition, so in a
       | sense it really doesn't matter. The article does a good job of
       | explaining this.
        
         | complianceowl wrote:
         | You can't say the market is bearing it when the college market
         | is being sustained by government-backed funding via student
         | loans. If the market were really bearing it, government's
         | involvement would be minimal to non-existent.
        
           | peter_l_downs wrote:
           | The people paying $100k are not doing so via government-
           | backed student loans.
        
             | Supermancho wrote:
             | I don't understand this. When Harvard or CalTech says that
             | anyone admitted will not be turned away due to financial
             | hardship, it's because the loans are issued with a
             | qualification based on their admission. 100k or any other
             | price, the current financing structure remains the same.
        
               | gnicholas wrote:
               | I believe Harvard also guarantees some students (from
               | families below a certain income level) don't need to take
               | out loans.
        
               | bfrink wrote:
               | At Caltech, students from families making $90K or below,
               | will receive a no loan financial aid package (package
               | will consist of grants and work-study).[0]
               | 
               | [0] https://www.admissions.caltech.edu/afford
        
       | 082349872349872 wrote:
       | How did it happen? Education in the US works on a freemium model.
       | 
       | The pay-to-win aspect is more obvious at the university level,
       | but it occurs at K-12 too: it's just that there the cost is not
       | directly charged by a school district, but occurs via the premium
       | for housing in that district.
       | 
       | (take a null hypothesis: a world where school districts all offer
       | the same education. Even in this case, should parents somehow
       | agree on which the "good" district were, it would have a premium
       | reflecting how much parents who care about education are willing
       | to pay to live somewhere where their children's likely friends'
       | parents also care about education. "the mother of Mencius chose a
       | neighbourhood")
        
       | uejfiweun wrote:
       | Sometimes I feel like college tuitions and need based aid
       | programs are specifically calibrated to fuck over the "upper
       | middle class." It's completely ridiculous that households making
       | 300K or whatever (which is barely enough to support a family in
       | many cities in the nation) are put into the same financial aid
       | category as billionaires (that is to say, no financial aid at
       | all). It's a hoop that you have to jump through so that the man
       | can keep you tied to your desk working throughout your entire
       | life.
        
         | iamthirsty wrote:
         | > It's completely ridiculous that households making 300K or
         | whatever (which is barely enough to support a family in many
         | cities in the nation)
         | 
         | ...Is this /s? $300k is sufficiently enough to support a family
         | of 4 in literally any city in the U.S., including NYC & LA.
         | 
         | Outside of those 2 major cities, $300k/y for a family is _more_
         | than enough.
        
           | tstrimple wrote:
           | I lived comfortably in SoCal making around $160k/year with a
           | family of 5. These were in family friendly neighborhoods with
           | low crime and good schools, so definitely not the cheapest
           | areas either.
        
       | complianceowl wrote:
       | Posing this question almost feels insulting. How did this happen?
       | As with so many (not all) things that government gets involved
       | with, Uncle Sam did it.
       | 
       | Why on God's green earth would colleges lower their prices when
       | they have guaranteed funding via guaranteed student loans? If
       | anyone could get a loan for a house, the same thing would happen
       | to the housing market. Cough Cough...2008. Government placed
       | quotas on the industry to make the "American Dream" a reality for
       | everyone.
       | 
       | I get it. Government-backed student loans does indeed give
       | opportunities for many less fortunate people. But does giving
       | opportunities to the less fortunate, which is a much, much
       | smaller percentage than those who are not in that category,
       | justify making college unaffordable for the entire country? Keep
       | in mind that most people fall into a middle category where they
       | are not poor but still don't have enough for college and have to
       | find a way.
       | 
       | And sure, call me a conspiracy theorist, but at the end of the
       | day, the Government doesn't back student loans because they want
       | to help. They do it because it serves their special interest
       | groups.
        
       | jppope wrote:
       | "Its not about what you can afford, its about what you can
       | borrow"
        
       | cjpearson wrote:
       | Very few students will pay that price. Even those above financial
       | aid thresholds will typically be offered a ~~sale price~~ merit
       | scholarship. Also, if they have other offers they can try and
       | price match. The sticker price is so high because it feels nice
       | to get something for 50% off. Much more so if it was due to your
       | "merit" rather than your coupon clipping prowess.
       | 
       | College tuition is expensive, much more than it should be, but
       | the obsession over a sticker price that is almost never relevant
       | is silly. People should be more concerned about the actual cost
       | of attendance.
        
       | bandrami wrote:
       | Why is this presumed to be a bad thing?
       | 
       | College attendance and graduation rates are higher than at any
       | point in the past, so the cost isn't actually keeping people from
       | going to college (or at least, isn't keeping people from going to
       | college more than they were kept from going to it 50 years ago).
       | 
       | In general, the income premium from a college education is much
       | greater than the debt accrued to get that education, which is why
       | people still take the deal. (There's people on the margins for
       | whom that _isn 't_ true and I think most of the reform/bailout
       | effort should involve them.)
       | 
       | Is this actually something that needs to be "fixed"?
        
         | pc86 wrote:
         | For the sake of argument let's say college triples your income
         | potential. To make the math easy, let's say instead of earning
         | $1M over your life you'll now earn $3M.
         | 
         | We shouldn't look at a school charging $400k and say "well
         | you'll make more than that so it's a good deal." We should look
         | at what you're actually getting. A cinder block dorm, mass-
         | produced assembly line food, a professor making $80k a year
         | telling you to write a paper on a book that's in the public
         | domain. None of that is worth $400k.
        
           | aleph_minus_one wrote:
           | > We shouldn't look at a school charging $400k and say "well
           | you'll make more than that so it's a good deal." We should
           | look at what you're actually getting. A cinder block dorm,
           | mass-produced assembly line food, a professor making $80k a
           | year telling you to write a paper on a book that's in the
           | public domain. None of that is worth $400k.
           | 
           | If passing this exercise in docility gives you the mentioned
           | 2 million USD over life: why not?
        
         | gnicholas wrote:
         | You don't seem to be concerned at all by the ballooning student
         | loan debt.
         | 
         | Also, it's not clear that the wage premium from attending
         | college has to do with what is learned in college. Some
         | scholars believe that it is largely a signaling device. Others
         | believe that it is used as a proxy for general intelligence
         | tests, which companies try to avoid using when hiring employees
         | (due to a SCOTUS case from several decades ago, dealing with
         | disparate racial impact).
         | 
         | It may be true that the wage premium has outweighed the cost of
         | attendance in the recent past, but this could easily change as
         | tuition continues rising, and critically as interest rates are
         | much higher than in recent years. The discount rate to which
         | future earnings are subject is much larger than in the past 30
         | years, which means that the required wage premium has to be
         | much larger than if the interest/discount rate were closer to
         | zero. Basically, ZIRP was a boon for colleges, not just
         | startups.
        
       | RcouF1uZ4gsC wrote:
       | There an easy way to fix this:
       | 
       | Have a set price per semester hour that the college/university is
       | allowed to charge.
       | 
       | Colleges/universities are free not to abide by this, but in that
       | case they get zero federal funds, including research grants or
       | student loans, and they get treated like a for profit which means
       | no more tax deductible donations.
       | 
       | Once you set a limit on how much they can charge, the colleges
       | will iron out the inefficiencies themselves.
        
       | janalsncm wrote:
       | Something that would cost virtually nothing compared with the
       | cost of tuition is for the IRS to connect with the department of
       | education and help students as consumers to make an informed
       | decision about schools and financial outcomes.
       | 
       | An opaque system will never lead to price reductions. I want to
       | know average salary 1, 10, and 20 years after graduating for each
       | school and each major at the school.
       | 
       | Some might think it's a bit too on the nose to think in purely
       | financial terms about education. Fine. They can ignore the price
       | tags. But let's not pretend there's no relationship between
       | software engineering salaries, companies' almost uniform
       | requirement of a CS degree, and the thousands of students lining
       | up for said degrees willing to pay whatever it takes.
       | 
       | Here's another idea. How about the billionaires who say America
       | doesn't know how to build anymore, how about they create a new
       | computer science university? Undercut the competition, give
       | students an education at scale. Hire leading researchers to teach
       | classes. Students who want to pay full sticker price at a legacy
       | school can continue to do so.
        
       | janalsncm wrote:
       | One thing I have noticed in these conversations is some who say
       | government-backed loans are the root cause of price increases.
       | Even if this is technically correct, it ignores how we got here,
       | which is also why going back on that is non-negotiable.
       | 
       | And from the other side, public college was never free in the US,
       | but it didn't have to be free to be affordable. We don't have to
       | make it free to solve the problem. In 1970 tuition at University
       | of California schools was about $1000 in today's dollars. It's
       | not nothing, but it also means you're not making a huge financial
       | mistake by going to college and not getting a degree.
       | 
       | Without student loans, a lot of families simply wouldn't be able
       | to afford to send kids to college. Meanwhile, as government
       | (especially state governments) cut funding to schools, sticker
       | price has skyrocketed even at public schools.
       | 
       | So really the only solution is more public funding for public
       | universities. This will force prices down and force private
       | schools to compete. Vanderbilt wouldn't list their tuition at
       | 100k if in state was $1000.
        
         | redserk wrote:
         | I believe a number of states trimmed state-run college and
         | university funding during the 2008 housing crisis to help
         | balance the books.
        
         | ta_1138 wrote:
         | Not at all.
         | 
         | Go to one of those almost-free european colleges, and then
         | compare the experience to a US college. The US colleges expect
         | most students to come from far away, live on a big, expensive,
         | beautiful campus and have massive efforts in student lifestyle.
         | Sport facilities, museums, academic support, actual office
         | hours... it's closer to expensive, private EU universities.
         | Most EU universities don't do that, and they are ran to cut
         | costs. The expense per student is low, on purpose.
         | 
         | They might both be called universities, but it's completely
         | different goods. The transformations of European schools to be
         | available to the masses just didn't happen in the US, and
         | therefore the prices are through the roof. Give any American
         | university the budget per student than a German or Spanish
         | university has, and they'd have to just close, because they
         | aren't built for it.
        
         | floor2 wrote:
         | But this misses the fact that a huge, huge percent of the cost
         | is going to luxuries and things that have no benefit to 99% of
         | students.
         | 
         | The dorms, gyms, cafeterias and student centers built in the
         | last decade are luxurious spaces compared to prior decades.
         | Perfectly good buildings are torn down and rebuilt so that a
         | new donor can put their name on the building. Budgets for
         | sports, clubs, and other programs have skyrocketed.
         | 
         | If you were to start a new school from scratch and ask the
         | question "How can we give students the best education for a
         | reasonable price?" you could do so with a university with
         | 1/10th the headcount of staff and a correspondingly lower
         | tuition.
         | 
         | You just wouldn't have a 15-person committee meeting weekly to
         | decide if the company the university hired to perform an audit
         | of the mission statements of the companies the university hired
         | to provide consulting services to the student affairs staffers
         | were properly recorded in the new document management system
         | that was transferred from the homegrown IT solution to the new
         | vendor.
        
       | totalhack wrote:
       | Loans. Loans are how this happened.
        
         | brigadier132 wrote:
         | The schools are not free of blame. These are non-profit
         | institutions, supposedly they have 0 incentive to be raising
         | prices like this.
        
           | dragonwriter wrote:
           | If there is effectively unlimited ability to pay, and the
           | additional revenue can be used for higher-quality services
           | (and since its free money for the institution, the marginal
           | quality per dollar hardly matters) there is little reason,
           | even as a not-profit-seeking institution, not to raise
           | tuition.
           | 
           | The way to stop it is to turn off the unlimited ability to
           | pay, which is tricky to do while maintaining both independent
           | private education institutions _and_ a desire to promote
           | access the way federal aid was intended to, but it probably
           | can be done by cost caps for institutions to be eligible for
           | aid (which can apply only for students with federal aid, so
           | long as there is no negative discrimination rule for such
           | students).
        
             | brigadier132 wrote:
             | > there is little reason, even as a not-profit-seeking
             | institution, not to raise tuition
             | 
             | Except the well-being of the students? Not for profit
             | institutions are supposed to be immune to this kind of
             | behavior.
             | 
             | Also I agree with you that the way to stop this is to end
             | student loans.
        
               | dragonwriter wrote:
               | > Except the well-being of the students?
               | 
               | The long-term well-being of the students is not what most
               | educational institutions frame as their charitable
               | mission, and even if they did they don't have a good way
               | to assess marginal impacts on it the way they do other
               | things, so its unlikely to get factored in consistently
               | even if there is an intention to respect it.
               | 
               | > Not for profit institutions are supposed to be immune
               | to this kind of behavior.
               | 
               | No, charitable non-profit institutions are supposed to be
               | immune to seeking returns to investors, not from seeking
               | money to serve what they have defined as their charitable
               | mission. Quite the opposite.
               | 
               | > Also I agree with you that the way to stop this is to
               | end student loans.
               | 
               | I _very specifically_ did not say the solution was to end
               | student loans, I said it was to condition aid (including
               | whatever combination of grants and loans) on cost caps.
               | 
               | (I think aid should be mostly or all grants and not
               | loans, but that's unrelated to the cost of tuition
               | problem.)
        
           | empath-nirvana wrote:
           | Schools should be on the hook if students default on their
           | loans.
        
       | TrevorJ wrote:
       | Businesses will charge what the market will bear. And if 'the
       | market' can get government loans to pay for tuition, then the
       | market will bear an awful lot.
        
       | bdw5204 wrote:
       | One major reason is the college rankings which are based on how
       | much the college price gouges and how many prospective students
       | it rejects after stealing an application fee from them.
       | 
       | Another one is the federal student loan program which makes it
       | possible for students to borrow whatever the college wants to
       | charge even if it is obvious they'll never be able to afford to
       | repay it.
        
       | hbosch wrote:
       | It's actually incredible how many engineers and designers I have
       | met personally who believe that college was a waste of time, in
       | comparison to the knowledge that can be gained just through
       | internships, mentorship and forms of apprenticeship. Do you think
       | someone with 4 years of interning around major tech companies is
       | better equipped to work for those companies compared to a person
       | who came directly out of college?
       | 
       | The rise of bootcamps and micro-certifications teach people 80%
       | of the stuff in 20% (or less) of the time, and at fractions of
       | the cost as well. Are university educations really that much
       | better?
       | 
       | To me, the value of the university system seems to be the
       | connections and networking that form rather than skills and
       | acuity.
        
         | life-and-quiet wrote:
         | I think it really depends on what your goals are. If you're
         | just aiming to get a job or make as much money as possible,
         | then yeah I think college is often overrated. But as somebody
         | who took the nontraditional route and is now interested in the
         | "harder" aspects of computer science, there are absolutely gaps
         | where my formally trained colleagues have a leg up. Formal
         | academic bodies of knowledge, and getting exposure to them,
         | absolutely have a use. But you for sure don't need them in many
         | day-to-day jobs or to advance as a professional much of the
         | time.
         | 
         | EDIT: this response assumes a good program / department. There
         | are absolutely subpar college programs that are a giant waste
         | of money and time.
        
           | d0gsg0w00f wrote:
           | I totally feel you on this. One time I spent three nights
           | writing a language parser before my Google wormhole showed me
           | I was writing a lexer/tokenizer. My colleagues with CS
           | degrees just looked at me like I was an alien when I shared
           | my excitement.
        
         | dan-robertson wrote:
         | It's not too hard to imagine what it's like when someone spends
         | four years interning at tech companies. That's basically one of
         | the computer science courses at Waterloo. So you can just find
         | people who graduated from those courses and see how it worked
         | out for them. Though obviously there's a lot of selection bias
         | there.
        
         | ta_1138 wrote:
         | Yet many people leave college with few connections and little
         | networking ever done. So by your standards anyone without those
         | social skills should consider college as a total waste of time
         | and money. College: only worthwhile for extroverts.
        
         | alphazard wrote:
         | > The rise of bootcamps and micro-certifications teach people
         | 80% of the stuff in 20% (or less) of the time, and at fractions
         | of the cost as well. Are university educations really that much
         | better?
         | 
         | This is the wrong comparison IMO. All of the good engineers
         | I've come across are autodidacts. This makes sense when you
         | think about it. You aren't going to be among the best by
         | learning at the pace of a class. Many of them went to college
         | because culturally that's what smart people do in the US
         | (hopefully this changes). They acquired their competency
         | despite--not because of--being preoccupied with useless
         | coursework.
         | 
         | Bootcamps and micro-certifications don't produce competency
         | either, but the stakes are much lower, and it's much less time
         | and money wasted.
         | 
         | > To me, the value of the university system seems to be the
         | connections and networking that form rather than skills and
         | acuity.
         | 
         | Yes some of it is networking, but it's really that universities
         | function as rating agencies for humans. Getting into the
         | university is the most important part. If everyone switched to
         | putting the best school they got into on their resume instead
         | of where they graduated from, very little would change. And it
         | would provide roughly the same signal to employers.
        
           | gnicholas wrote:
           | > _Getting into the university is the most important part. If
           | everyone switched to putting the best school they got into on
           | their resume instead of where they graduated from, very
           | little would change. And it would provide roughly the same
           | signal to employers._
           | 
           | I understand some entrepreneurs who pitch VCs do just this. I
           | know the practice is common among HS tutors and admissions
           | counselors. Their resume includes all the schools they got
           | into, not just the one where they enrolled.
           | 
           | I would be slightly more impressed by a kid who got into some
           | Ivy but went to UCLA to save money (or even a lower-ranked
           | private school with a huge scholarship) rather than just
           | going to the Ivy.
        
         | weitendorf wrote:
         | Personally I believe that theoretical CS/mathematics in college
         | was a great use of my time, and that those subjects are hard to
         | learn and truly internalize on the job. I've got a lot of value
         | over the years from that kind of education, not only from the
         | specific things I learned, but the way of thinking it ingrained
         | and the broad exposure/skills it gave me (eg I might be able to
         | recognize some problem as control theory and find and
         | understand papers about it).
         | 
         | However, most of the practical skills I learned in college were
         | not good uses of time. Classes in general weren't structured to
         | teach you the kind of skills being an actual fulltime SWE gives
         | you. Plus the industry changes so fast, and college is so
         | unrepresentative of what actual problems people work on in the
         | real world, that you may learn something soon/already obsolete.
         | 
         | So my advice, especially for people going into the software
         | industry, is to learn as much foundational and theoretical
         | content as you can. You may never get a better chance to learn
         | graph algorithms, real analysis, abstract algebra, or theory of
         | computation after college. Your professors may be experts on
         | compilers or programming languages, and able to teach you the
         | theory behind eg LISP better than you could teach yourself
         | later.
         | 
         | Signup for the classes that will remap your brain and pay
         | dividends for decades instead of "web dev 101", and you might
         | find your college experience worthwhile (beyond the fun,
         | personal growth, and networking - all important too).
        
         | strangattractor wrote:
         | If your lens views Universities as a work training substitute
         | their view would be accurate. If you view the University as
         | Universus (Latin for Universe or everything) then what they
         | offer is quite unique. Arguably all do not fulfill all of
         | these.
         | 
         | 1. A kinder gentler form of kicking your child out of the nest
         | and learning to be on their own.
         | 
         | 2. A no mac-education environment were students can participate
         | in research and learn how to answer question that are not yet
         | answered as opposed to regurgitation.
         | 
         | 3. Learning to socializing as adults.
         | 
         | 4. Meeting groups of people that spend their days thinking
         | deeply about specific subjects. These people can then be used
         | as resources for society as a whole to solve problems and make
         | decisions.
         | 
         | 5. Exposure to just about everything we know or think we know
         | about everything.
         | 
         | If you do not view them as such then I would agree they are not
         | worth the effort or expense. Industry can afford to train their
         | own automatons. Which is one of the reasons they are salivating
         | over AI at this very moment.
        
           | zdragnar wrote:
           | Even universities advertise the job placement rates for their
           | various majors. Kids aren't told by parents, teachers or
           | counselors to go to college to become well rounded, they're
           | told to go because they'll earn more money if they have a
           | degree.
           | 
           | As for #2, that's a very rare thing to encounter in an
           | undergraduate degree. Most of your classes are being fed
           | information, then asked basic comprehension questions about
           | it. Maybe some creative authorship skills in the form of
           | writing courses, but nothing groundbreaking there either.
           | 
           | Many degrees are luxury goods that you either get paid for by
           | someone else or become a wage slave to pay off in a decade or
           | three, depending on how much you borrowed.
        
         | empath-nirvana wrote:
         | > The rise of bootcamps and micro-certifications teach people
         | 80% of the stuff in 20% (or less) of the time, and at fractions
         | of the cost as well.
         | 
         | It really depends on what you sorts of jobs you're talking
         | about. There's a bunch of work available in the vast realm of
         | "computer jobs" that are essentially on the intellectual level
         | of plumbing or hvac repair and indeed, college is a waste of
         | time for those sorts of jobs and boot camps are fine. I'm not
         | denigrating it, that's mostly what I do. I wire together
         | systems that other people mostly developed and do a bunch of
         | troubleshooting and most of the value I bring is on-the-job
         | experience with the systems involved.
         | 
         | There's also a lot of cutting edge R&D and dev work that does
         | indeed benefit from an academic background, and you don't
         | really have to look any further than open ai for that. But even
         | outside of machine learning, a lot of people have built
         | companies on taking academic research papers and turning them
         | into products.
        
           | idiotsecant wrote:
           | Those cutting edge jobs are not using material from
           | university classes, they're inventing it whole cloth.
           | University education, particularly undergraduate education,
           | is a socioeconomic filter. It proves that you have some
           | combination of family connections or money sufficient to be
           | admitted and graduate.
        
           | BigToach wrote:
           | Taking those students out of the college pool might also
           | decrease the overall cost of college.
        
         | pclmulqdq wrote:
         | A bootcamp gets you the requisite education to be an entry-
         | level engineer at a place like Google or Facebook. However,
         | these jobs are mostly training (like a bootcamp) for you to
         | become a more senior engineer, where you will actually be
         | designing systems and coordinating with others. In a senior
         | job, your job is more about communicating with people and
         | making predictions about what will happen when you eventually
         | build something.
         | 
         | The skills bootcamp graduates don't pick up are things like
         | math, writing, and research skills. You don't use those skills
         | as a code-slinging junior engineer, but when you start
         | coordinating with other people and doing things like designing
         | large-scale systems, you may find yourself doing a lot more
         | math and writing than you think.
        
         | anigbrowl wrote:
         | Social connections/networking are part of it, but so is the
         | social/professional/international cachet of having a degree.
         | Many people who express (quite legitimate) doubt about the
         | value of their degree as an educational experience are
         | oblivious to the numerous filters that get in the way of people
         | who don't have a degree.
        
         | d0gsg0w00f wrote:
         | The purpose of college is to show people you can jump through
         | four years of bureaucratic hoops with a smile on your face for
         | no guaranteed reward.
         | 
         | This is actually a fantastic test for working in a large
         | company. I always worry that anyone who can't finish college
         | may not be a good fit for a large organization. I'm not always
         | right but I'm right a lot.
         | 
         | Also it really does teach you how to learn. The content doesn't
         | really matter.
        
         | Aloisius wrote:
         | Surely we can create a cheaper networking event if that's the
         | main value.
        
       | ars wrote:
       | This is why I'm so against the government forgiving education
       | loans. All that will happen is the money will go to colleges, and
       | they'll raise tuition.
       | 
       | Instead put the schools on the hook for the loans - if someone
       | doesn't pay, well, it's the school that has to eat the cost.
        
         | jollyllama wrote:
         | You're against a particular kind of loan forgiveness, where
         | it's assumed the schools are made whole. As you note, there's
         | another kind of loan forgiveness where the obligations simply
         | evaporate.
        
           | dragonwriter wrote:
           | The schools are already whole; the schools aren't the loan
           | issuers for the loans at issue, the federal government is.
           | The schools already got paid.
        
         | empath-nirvana wrote:
         | The US already has a 'loan forgiveness program' that works for
         | every single loan _other_ than student loans, called
         | "bankruptcy". It's worked for hundreds of years, and we used to
         | allow it for college loans.
        
           | gnicholas wrote:
           | There is one difference: student loans that are being
           | "forgiven" are being put to taxpayers, whereas in bankruptcy
           | the loans are absorbed by banks that lent money (and to a
           | lesser extent, to parties with outstanding debts, such as
           | vendors).
        
       | ramesh31 wrote:
       | I've always deeply resented this "personal expenses" cost being
       | lumped into tuition prices. Yeah, living and existing as a human
       | being for a year costs about that much, whether you are going to
       | college or not. It makes no sense whatsoever how that got
       | conflated. And that's exactly how a huge portion of our entire
       | generation got to enjoy a four year free for all party sabbatical
       | in the prime of their lives, as the rest of us struggled at entry
       | level jobs through global recessions, for which they now want
       | forgiven on the backs of taxpayers.
        
         | redserk wrote:
         | It's not _that_ uncommon for a university to require you live
         | on-campus the first couple of years unless you live locally. On
         | top of this, it 's not uncommon for universities to mandate on-
         | campus students pay for meal-plans and a lot of other
         | potentially unnecessary garbage.
        
       | ars wrote:
       | One way this happened is that schools are including all sorts of
       | useless, but expensive, frivolities.
       | 
       | Why do school have ultra fancy sports areas? Why do they need 15
       | different restaurants?
       | 
       | Go visit a college - they are basically little resort towns, or
       | cruise ships on land.
       | 
       | Instead they should focus on education, and let other companies
       | do the rest of that, if students want them.
        
       | maestroia wrote:
       | I was talking to a college professor I know a couple weeks ago
       | about this exact thing. And what they said comprised a
       | substantial amount of the expenses of their 4 year private
       | college made perfect sense, because it's happening to every
       | business.
       | 
       | Health insurance costs.
       | 
       | Now, add to this: _salaries and other benefits to both staff and
       | educators._ liability insurance. _increased food costs._ I'm
       | certain facilities have increased costs also, from new
       | construction to utilities. *Plus anything else I've left out.
       | 
       | Let's face it, everything has become more expensive. The Five
       | Guys meal of a little cheeseburger, little fries, and regular
       | drink which cost me $12 4 years ago in March, 2020 (I keep
       | records), would cost me $17-18 today (I checked the prices today
       | at noon and walked away). That's a 40-50% increase.
       | 
       | Why would we expect higher education to not be effected?
        
         | brigadier132 wrote:
         | Salaries are the primary cost not health insurance. There are
         | more administrators than students. Also there is no excuse, the
         | educational institutions are incompetent at managing their
         | finances.
        
         | maxlybbert wrote:
         | I don't think anybody is surprised that college tuition has
         | increased. They're surprised it's increased faster than the
         | prices for almost every other service. So have health care
         | costs. And in both cases, the system is designed to make it
         | difficult and pointless to shop based on price.
         | 
         | I have a hard time believing health insurance costs have driven
         | the drastic increase in college costs. They've certainly played
         | a role, but I don't see any reason they would increase the cost
         | of education more than they've increased the price of
         | everything else.
        
       | jmmay wrote:
       | https://archive.is/3bUf5
        
         | lulznews wrote:
         | Thanks
        
       | thephyber wrote:
       | In high school, I only worried about what college I could get
       | into and what was the reputation of the college. Cost was
       | irrelevant because I had no job (I had worked, but for only
       | around minimum wage) and didn't know what kind of job I could get
       | after I graduated.
       | 
       | I had no ability to effectively price shop, to compare the value
       | of the degrees of different colleges, and the ability to get
       | reviews of each college seemed "impossible" (opaque and/or
       | difficult to get started).
       | 
       | In retrospect, I was a terrible consumer of the college product,
       | but I don't know how I could have changed it at the time, given
       | my situation. I know the US federal government required colleges
       | to publish key metrics such as the average salary by
       | degree/program and specific costs like tuition. Those are
       | incredibly valuable compared to the info I had, but I'm curious
       | if high school students today are any better at making value
       | judgements before they have had a non-trivial paycheck.
        
         | gnicholas wrote:
         | Yeah, I didn't give sufficient weight to the cost difference
         | between the top-ranked college I attended and the top-10-ranked
         | college I passed on. It would have cost about $40k less over 4
         | years, but it was located in a less desirable location and was
         | somewhat less prestigious/well-known.
         | 
         | When it came time to go to law school, I wised up and chose a
         | state school where I qualified for in-state tuition and merit
         | scholarship. I sometimes wonder about what my life would be
         | like if I had attended the higher-ranked school that I turned
         | down. Having fewer loans definitely made it easier for me to
         | jump from law to bootstrapping a startup.
        
       | oneplane wrote:
       | Commercial goals and no regulation that desires everyone to pass
       | the same accreditation, and only that same accreditation.
       | 
       | In theory, doing it 'better' than the competition is good, in
       | practise this just means there will always only be a handful that
       | are actually better and they will capitalise on that as much as
       | possible. But purely regulating everything into the ground also
       | doesn't help.
       | 
       | Not sure if this is even fixable, because it is a complete
       | ecosystem that is highly lucrative (money, status, offloading HR
       | to the schools) for everyone except the students and teachers
       | (professors). You can also wonder if the goal of just providing
       | good education is something people are even interested in, it's
       | so much more geared towards a 'future fabrication factory' where
       | the learning stuff part is secondary to the "follow this track go
       | get a shot at job XYZ" part that everything is minmaxing for.
        
       | brightball wrote:
       | Student loans that removed any incentive to keep it affordable?
        
       | recursivedoubts wrote:
       | Usury.
        
       | ilamont wrote:
       | In 2022 one of my kids wanted to take college classes online over
       | the summer. We created a spreadsheet with the costs for each
       | school, and what was surprising was the range of prices, from
       | $900 per class for MassBay Community College and UC Berkeley, to
       | $7,000 for Babson (a private college near Boston). The state
       | universities were all over the map - UConn and UVM are both big
       | flagship universities but UVM was >2x UConn, and even more than
       | private colleges like Brandeis. We went with UC Berkeley.
       | 
       | UVM online $4,800
       | 
       | MassBay $900
       | 
       | Harvard Extension $3,500
       | 
       | Lasell online $1,600
       | 
       | Brandeis $3,290
       | 
       | Babson $7,000
       | 
       | B.C. Woods College $2,200
       | 
       | UConn online $1,800
       | 
       | Berkeley extension $900
       | 
       | Umass Boston $1,500 (in state rate)
        
       | vsuperpower2020 wrote:
       | Half the money goes to administrators. This is also anecdotal,
       | but it's hard not to notice that my university constructed a huge
       | building exclusively for DEI. Not sure what it did that wasn't
       | done before.
        
       | tacocataco wrote:
       | People in debt are more easily manipulated.
        
       | amateuring wrote:
       | Government
        
       | cyclecount wrote:
       | Higher education in the US is hardly about learning the skills
       | for a particular discipline or trade. The American university
       | system is a class differentiation mechanism, and students are
       | paying for access to the managerial professional class, often the
       | highest class one can achieve without family connections.
       | 
       | Even if tuition costs more than can be earned back in wages, it's
       | still a good investment because the alternative is lower class
       | jobs or unemployment. (There are a few counter examples of
       | professions which pay well and don't require a university
       | degree).
        
       | lukewrites wrote:
       | I love living in the land of opportunity to accrue debt. Student
       | debt, medical debt, it's all Freedom Debt(tm) to me!
        
       | contemporary343 wrote:
       | Worth remembering that ~2/3 of U.S. students in college are in
       | public colleges and universities, not private ones like
       | Vanderbilt. Prices have gone up there too (especially since state
       | governments subsidize their public universities significantly
       | less than they used to), but they are still pretty good deals
       | given U.S. GDP per capita. In many states they can also be
       | practically free depending on income level and typically provide
       | excellent educations and career opportunities for most students.
        
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