Forgive tuitions, or, help families in FHA loan foreclosure?

@AverageJoe1 keep in mind that, unlike mortgages, student loans cannot be refinanced when interest rates go low. Over the past 40 years the cost of college has increased by 180% according to Forbes, a respected business periodical.
"How College Prices Ballooned Over 40 Years" Forbes March 28, 2022

In 1980, the price to attend a four-year college full-time was $10,231 annually—including tuition, fees, room and board, and adjusted for inflation—according to the National Center for Education Statistics. By 2019-20, the total price increased to $28,775. That’s a 180% increase.

College prices have soared across all institution types, but private nonprofit institutions continue to cost more than public colleges. A full-time student paid $48,965 at a private nonprofit college on average in 2019-20 compared to $21,035 at a public university.

Since 2019, however, the trend has slowed. In fact, from the academic year 2019-20 to 2021-22, average tuition, fees, and room and board dropped 0.2% at private nonprofit four-year schools, according to the College Board. From 2020-21 to 2021-22, prices dropped a further 1.7%. Costs at public four-year schools followed a similar pattern in the same timeframe.

It’s unclear if this is a short-term or long-term deceleration in price growth. But some reasons for the change include pandemic stimulus funding to postsecondary institutions, which helped them increase grant aid to students, and tuition freezes across several colleges in response to the economic impact of the pandemic.
Why Have College Prices Risen So Dramatically Over Time?

Even if college prices have stabilized for now, they’re still unmanageable for many students. More than half of bachelor’s degree recipients from public or private four-year colleges graduated with debt in 2020, and the average debt load was $28,400, according to the College Board.

How did prices rise so substantially? There is a range of possibilities, many of which researchers aren’t in agreement on. For example, increases in both federal student loan availability and administrative positions at colleges are widely debated as contributing factors. But data doesn’t conclusively show that these factors cause prices to rise in a significant way.

Here are some trends that have likely contributed to higher costs for colleges over time.
1. Colleges Provide More Student Support Services

Colleges have stepped in to fill many roles for students outside of educating them. This includes mental health support, which has become even more necessary as college students navigate the pandemic, plus help securing housing, food, transportation, child care and more. Academic advising is also important to help ensure students graduate on time or meet their transfer goals.

These supports can make a real difference in student outcomes. The City University of New York’s (CUNY) Accelerated Study in Associate Programs initiative, for example, has been shown to almost double graduation rates among community college students over three years, according to a report by social policy evaluation organization MDRC.

Adding these services requires hiring nonfaculty personnel to staff and manage them. Programs at community colleges that provide academic and personal guidance to students through individual advising can cost $1,000 to $5,700 per student annually, according to the Brookings Institution.

Check Out: Best Private Student Loans
2. Changes in State and Local Funding

Aside from tuition payments, public institutions depend on funding from states and localities to operate. State and local funding made up 55% of public two-year college revenues and 44% of public four-year college revenues in 2018-19, according to the College Board.

The amount states and local governments give to colleges fluctuates depending on market conditions and tax revenues. Economic downturns like the Great Recession in 2008 led to funding cuts, and in 2020, average education appropriations per full-time equivalent student were still 6% lower overall than in 2008, according to a report from the State Higher Education Executive Officers Association (SHEEO).

When public colleges have less state and local funding, it’s more likely they’ll pass costs on to students in the form of tuition increases, according to a 2019 report from the Center on Budget and Policy Priorities. State and local support for colleges is on the upswing, however. As of 2020, average public higher education funding increased for eight years in a row, according to the SHEEO report, and 18 states have brought funding up to pre-2008 levels.

That’s good news for today’s students. When we look further back, though, we can see how state and local disinvestment in higher education funding has affected college costs overall. State and local funding per student for higher education dropped about 25% between 1988 and 2018, according to an analysis by Douglas A. Webber, an associate professor of economics at Temple University.
3. Overall Increase in Costs for Service Industries Like Education

One primary reason for the huge jump in college prices since 1980 is a concept called cost disease, argue Robert B. Archibald and David H. Feldman, economics professors at the College of William & Mary.

Unlike other areas of the economy, like manufacturing, it’s difficult to increase productivity in higher education while maintaining the same experience. New technology and improved methods can increase production at a steel mill, for example, but there’s not much innovation to introduce in a traditional 10-person literature seminar without sacrificing quality.

So while productivity gains in the overall economy keep the cost of producing goods from growing too fast, higher education and other services haven’t benefited from that productivity boost. That means it costs colleges more to produce an education, and that has led to higher prices for students.

Plus, it costs more to hire highly educated professors and administrators than it did in the past. Colleges are also likely to invest in the latest technology on campus, and in innovations in other areas that serve students, including career counseling, which raises costs.
How Should You Approach Rising College Costs?

It’s frustrating to see never-ending tuition inflation and feel powerless against it. But as an informed consumer, you can make smart choices to ensure that you don’t pay more than you can afford. You may choose to attend an in-state public college, for example, or to attend an affordable community college for two years and then transfer to a university to complete your degree.

No matter what type of school you plan to attend, use a net price calculator to determine how much you might actually pay at a certain school. You may find that you qualify for more financial aid than you expected. Also, make sure to fill out the Free Application for Federal Student Aid (FAFSA) to be eligible for grants, scholarships and low-cost federal student loans. That can make a significant difference in the amount you pay out of pocket."

@jimm619 said
No NEW cars to be sold.
Hey Jo, did you also read that LAKE MEADE, and LAKE TAHOE
are at their lowest water levels in RECORDED HISTORY?

@phranny said
@AverageJoe1 keep in mind that, unlike mortgages, student loans cannot be refinanced when interest rates go low. Over the past 40 years the cost of college has increased by 180% according to Forbes, a respected business periodical.
"How College Prices Ballooned Over 40 Years" Forbes March 28, 2022

In 1980, the price to attend a four-year college full-time was $10,231 an ...[text shortened]... federal student loans. That can make a significant difference in the amount you pay out of pocket."

@Mott-The-Hoople if the loan is refinanced through a private lender, yes. Federal student loans cannot be financed. If the federal student loan is refinanced through a private lender, all benefits of the federal loan disappear. "President Joe Biden’s student loan forgiveness plan, announced August 24, could decrease the loan balances of millions of people by up to $20,000. But the forgiveness only applies to federally held loans. For borrowers who previously refinanced their federal loans into a private loan, forgiveness is likely out of the question, according to loan experts." Time magazine
FHA mortgages can be refinanced.

@athousandyoung said
Are you suggesting the Republican Party wants to help people "who bought homes they couldn't afford"?

https://www.cbsnews.com/news/tea-party-on-foreclosure-they-bought-houses-they-couldnt-afford/

And where did you get this bizarre idea that high school graduates with 2 children are buying houses?!

@phranny said
@Mott-The-Hoople if the loan is refinanced through a private lender, yes. Federal student loans cannot be financed. If the federal student loan is refinanced through a private lender, all benefits of the federal loan disappear. "President Joe Biden’s student loan forgiveness plan, announced August 24, could decrease the loan balances of millions of people by up to $20,000. Bu ...[text shortened]... ely out of the question, according to loan experts." Time magazine
FHA mortgages can be refinanced.

@AverageJoe1 a well educated citizenry is essential for our national economic interests. It is not just a matter of benefiting an individual. It is about national security and national prosperity. Unfortunately, most conservatives are only interested in themselves and individuals. What benefits the prosperity and security of the nation is of little concern.

@phranny said
@AverageJoe1 a well educated citizenry is essential for our national economic interests. It is not just a matter of benefiting an individual. It is about national security and national prosperity. Unfortunately, most conservatives are only interested in themselves and individuals. What benefits the prosperity and security of the nation is of little concern.

@averagejoe1 said
Millions of people? OK, in small town USA, there are 20 people who are about to lose their homes in foreclosure. There are 20 people who graduated from college and have tuition loans to be paid.
The town Council is meeting today to decide how to apply tax money ….both groups of people are asking for that money to pay their loans.
If you were on the council, how ...[text shortened]... heard the college grads representatives and the rep for people who are close to losing their homes.

@phranny said
@AverageJoe1 a well educated citizenry is essential for our national economic interests. It is not just a matter of benefiting an individual. It is about national security and national prosperity. Unfortunately, most conservatives are only interested in themselves and individuals. What benefits the prosperity and security of the nation is of little concern.

@mchill said
If you were on the council, how would you vote, given these facts?

I would never vote to authorize the use of local tax money to pay for someone's private debt. Local tax money should be used for local services i.e. schools, road maintenance, libraries, streetlights etc.

@averagejoe1 said
Who is suffering the most? College graduates, who have moved up a rung on ladder of life, or a high-school graduate, (if that), unsteady, working, with a starter home (FHA loan), having a hard time making payments, feeding 2 children? Would it make more sense to pay off the choking FHA loan?
I look forward to an honest debate!!!!

@zahlanzi said
honest debate? ha!


ok, honest questions: is the US bankrupt? Has it run out of money? Is it a third world country?

If you obviously answer no, then get off your hypocritic ass and demand you republican representative to ALSO support those families you claim to care so much about. I am sure the reason why republicans don't introduce bills like this is because they ju ...[text shortened]... eciles don't realize that it's actually the republicans that block everything that might help people

@AverageJoe1
There is the problem of the fact that student loans cannot be taken care of by going bankrupt. You can claim bankruptcy on a house loan, and maybe even come out of it with your house intact plus there are means that mortgage companies can help out with forbearance for instance but there is no such ability for student loans so it is the student loan folks who are in worse shape if they get into trouble paying off those loans.

@Mott-The-Hoople
Yep, poor water maintenance. The mere fact there is a 500 year drought has nothing to do with it.
YOU ARE AN IDIOT with nothing but 'How can I best screw democrats'.