Another student protest, another mass arrest. Monday, thousands of students from all over California snarled traffic during their march on the Capitol in Sacramento. Hundreds of students then flooded the Rotunda of the Capitol, a somewhat raucous [7] affair. Eventually, the California Highway Patrol cleared them out, and 60 were carted off and thrown in the hoosegow for trespassing and resisting arrest.
Their problem: tuition increases. Already, tuition in California's state schools has tripled over the last decade, and state budget cuts will induce universities to jack up tuition again. But the state is out of money. And so it's struggling in a weird and ineffectual way with its red ink. For California’s ongoing debacle, read.... Searching For The Missing Moolah [8].
The same day the students were arrested, the New York Fed released a report [9] on the consequences of incessant tuition increases across the nation: ballooning student loan balances that are increasingly difficult to bear:
- 27% of the borrowers who had to make payments (not current students) were past due.
- $870 billion in student-loan balances at the end of the 3rd quarter 2011 (higher than credit card debt of $693 billion and auto loans of $730 billion), up 2.1% from the 2nd quarter, while other consumer debt declined or remained flat.
- Average balance: $23,300. That includes the millions of student loans that, after years of payment, have much smaller balances or are nearly paid off. Average balances owed by recent graduates are much higher.
The report lauded President Obama’s executive actions of October last year designed to ease the repayment burden of federal student loans. Laudable as they may be, they only soothe the symptoms for ex-students by shifting more of the costs to the taxpayer. But they don’t deal with the cause: the system itself. It has become dysfunctional.
More
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
The system is generating money for the government. SO I do not believe we will see any radical changes in the way it works anytime soon. Thats the way our country works. You want a nice career and a good job you have to go to college. If you go to college you will owe the government. How many times have you heard, "You need a degree to get a good job." That is all BS. You go spend tens of thousands of dollars to gain a decent education because this is what the price is set at. Then after you go through college and get a degree and come out $25,000 in debt, there are no jobs to be had.
ReplyDeleteTo add to my preivous post @12:04:
ReplyDeleteI am sure there will be those who look down on our generation as a bunch of cry babies who don't want to pay what they owe. Consider this though, out of all thr previous generations who has seen times like these? I am aware of the wars, I am aware of the great depression. But really, how many of those times have seen the type of government policy we see today. The crime? The general disdain for other human beings? I am in my twenties and I have seen the world flip on its head since I was born. I can only imagine what it must be like for elder generations. To compare our current situation with any other situation is just unfair.
Hey California...this is exactly what your politicians asked for. Give all of the benefits to the illegals and the legal residents have to pay more. Sometimes double the cost. ...and now they want to raise taxes! Of course, the ones complaining want to put blame on the 1% and not the govt officials.
ReplyDeleteI wish my balance was $23,300 try doubling that no wait triple that because by the time i pay it back it will have doubled due to intrest. Oh well looks like I'll be paying for the rest of my life...and do you think I even use my degree...NO!!!
ReplyDelete