LogFAQs > #923789519

Judgmenl posted...

mastermix3000 posted...

Judgmenl posted...

Peterass posted...

The real problem is why college is so expensive in the first place.

It's not. The problem is parents not considering their child's education costs when they decide to pop out 3-4 of them with al of them expecting to go to private out-of-state universities.

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I mean this outlook is weird. People don't deserve a job, but they do deserve the minimum required to live. This is why I support UBI. If you don't have the ability to get yourself a job, at least the state can take care of you.

That is a whole different issue, and also revolves around possibly replacing many menial jobs with machines/robots etc in the future. As less jobs become available, and more people reach working ages, it may be neccesary to provide a base income for all americans, or perhaps have minimum jobs (1-2 days a week) for a set base amount (splitting government jobs that require people up between many individuals...instead of having one work 40 hours, have 5 work 8-16 hours and receive a living wage (perhaps also have gov housing that can only be used by people doing these jobs as well).

The loan situation though is pretty simple, currently higher learning in the US is a for profit situation. Much of the "loan debt" in fact is not actually even based on initial costs for the loans, but based also on interest since the loans were accrued, defaults penalties etc.

One thing most don't know is that if you default or if you re-consolidate loans or a bunch of other things, they will take all interest earned and apply it to your principal balance. So if someone initially went to UoP for 4 years and ended up with 30k in debt, but could not get a job (other then what they were currently doing already..that barely paid the bills), for 5 years afterwards, so they deffered the loans. Every year the 6.6% interest of the loans would be added into the principal balance.

In 5 years that would basically make it around 45k already owed, so even if they got a job at that point paying more, they would already owe about 4k a year just to pay the interest at that point ($300+ a month).

If they could only afford $200 a month, they would still be going negative, and would be better off just paying 10% of their gross income (which is probably less then $30k a a year, so less then 3k total) with an income based repayment plan.

Problem is the total amount owed would keep going up, and if that continued for long enough they would never get out of debt. That is a direct example of the problem many Americans are currently having.

First, the education should not have costed 30k in the first place, ESPECIALLY for online colleges.

The actual cost to an online college per student is minimal, way less than physical universities. The teachers (I know, I looked into teaching the classes myself) get around $2k per class, which often has over 20 students. That is pretty much the total cost of the class for the university.

Uop charges 350-459$ per credit so 1.2-1.5k or so per student per class. One student just about pays the total cost for a class (also all the poor teacher gets), the rest is pure freaking profit. How is that even legal? If you charged based on cost with a bit extra for expenses, each student could pay less then 1/10th what they currently do, so instead of 30k for a BA, they could pay 3k total, and do that without loans.
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