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Topic: MARK CUBAN: 'The Student Loan Bubble Is Going To Burst' (Read 889 times)

sr. member
Activity: 644
Merit: 260
Yes, I have been wondering why it costs almost $3000 to take one class. That is fucked up.

The problem is that anyone can qualify for a student loan regardless of their ability or future ability to pay. Students are also conditioned to believe that they should not let the cost of going to college prevent them from attending any specific college. Both of these factors prevent colleges from even attempting to keep costs and expenses down.

Colleges also have the incentive to offer worthless degrees that offer little to no job skills, but appeal to the masses as the more people that attend a college the more money the college will receive.

Colleges have little to no incentive to keep costs in line with what they should be and spend an ginormous amount of money on things like research. It is great that research can be done, however it is unfair for students to be asked to pay for this.   

AFAIK the average class at college for "in state" tuition is closer to $1,000 per class for a 3 hour per week class per  12 week semester. If a professor is available for 3 hours per week per class they teach then each 3 hour class would have them work 72 hours per class over the course of 12 weeks. This works out to $13.88 per student per hour. If a professor taught a very small class of 20 students (most classes have attendance in the hundreds) then the school would be bringing in roughly $277.77 per hour that the professor works.
legendary
Activity: 1568
Merit: 1001
Yes, I have been wondering why it costs almost $3000 to take one class. That is fucked up.
It's because the govt and society writ large thinks any and all who wish to attend 'higher' education deserve to do so. So, they set up student loan programs and guarantee collateral that students don't have which allows the schools to always raise rates going forward. Market indicators aren't available for schools to realize that they need to cut costs because the market of said industry has been bastardized. Meanwhile, these universities have huge endowment but there's this never ending building and faculty expansion despite the true costs of education going down. Everything the govt subsidizes, there becomes more of it. Education should be going the way of technology (computers, phones, cosmetic surgery) as in lowering of the price over time as the free market drives down prices. Everything the govt touches w/ regulations and guarantees always goes up in price (education, health care, military hardware prices, etc).
full member
Activity: 196
Merit: 100
Yes, I have been wondering why it costs almost $3000 to take one class. That is fucked up.
sr. member
Activity: 322
Merit: 250
Decentralize All The Things!
Who F-ing cares about what shape these colleges are in? It's those that have been sold a bill of goods about going to college and are sitting on 50k+ in loans while holding a mostly worthless piece of paper while making minimum wage and still living in their parents houses that are truly the bagholders. This loan debt is non-transferable and the monthly payments are usually 1.5-2X a new car payment. What you have is a lost generation that won't lead middle class lives nor will they be able to purchase the homes at any decent price so the baby boomers can retire w/ ease. Of course, those college grads that were wise enough to look into BTC and realize the benefits will be living extremely comfortable going forward. The others...not so much.

So true and so sad. We are indeed headed for a very polarized world, let's at least just hope that we here are betting on the right horse.
sr. member
Activity: 350
Merit: 250
Who F-ing cares about what shape these colleges are in? It's those that have been sold a bill of goods about going to college and are sitting on 50k+ in loans while holding a mostly worthless piece of paper while making minimum wage and still living in their parents houses that are truly the bagholders. This loan debt is non-transferable and the monthly payments are usually 1.5-2X a new car payment. What you have is a lost generation that won't lead middle class lives nor will they be able to purchase the homes at any decent price so the baby boomers can retire w/ ease. Of course, those college grads that were wise enough to look into BTC and realize the benefits will be living extremely comfortable going forward. The others...not so much.

Darwinism at its finest
legendary
Activity: 1568
Merit: 1001
Who F-ing cares about what shape these colleges are in? It's those that have been sold a bill of goods about going to college and are sitting on 50k+ in loans while holding a mostly worthless piece of paper while making minimum wage and still living in their parents houses that are truly the bagholders. This loan debt is non-transferable and the monthly payments are usually 1.5-2X a new car payment. What you have is a lost generation that won't lead middle class lives nor will they be able to purchase the homes at any decent price so the baby boomers can retire w/ ease. Of course, those college grads that were wise enough to look into BTC and realize the benefits will be living extremely comfortable going forward. The others...not so much.
legendary
Activity: 826
Merit: 1002
amarha

I doubt that many colleges are going to fail. A lot of these schools have huge endowments. They've been making a killing over the years with tuition. I think a lot of them could afford a price crunch.

Maybe some fringe schools might not cut it. But maybe that's just the market clearing out those who can't compete.
sr. member
Activity: 476
Merit: 250
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