I have been reading a lot lately about how student debt is going to be the next crisis to hit American finance.  I can believe it too.  I cannot imagine coming out of school right now with a mountain of debt and anemic job prospects at best.  Why wouldn't kids just walk away from there debt, they have been seeing there parents or friends parents do that with mortgages for the past four+years?  I actually think the student debt crash may be worse than the housing crash because the bank can't repo an education.I also wonder if student debt was repackaged and sold overseas like mortgages were, I haven't read anything about that but it would not surprise me if they had been.

That would put the universities in line with the demonized banks in enticing people into buying things they can't afford.

I have thought that for years anyway.  I just don't see how $300-500 per CH prices are justified in the first place.  Universities are just as much about making money as any corporation, at least the For-profit schools are up front about it.

Here's something else to think about.  In the university where I teach as a grad student, my classes average probably 80-100 students.  I don't know how much the tuition is for the class but even it it's $1000/semester, so I'm bringing in $80,000-$100,000 per semester for the university.  My take is a small fraction of that.  I've kind of wondered where the rest of the money goes.

That new stadium or Arena, Tenured professors, conference attendance, and probably a huge chunk for administrative personnel.  My big question is value.  As in, Am I getting value for my money in that with a degree I can get a good job?  I don't necessarily think that is the case given the reported numbers of jobless college grads, though that is reportedly getting better..  The army, and you, ;D spent just under $40k for my BA and MA and I can't get a decent job.  Part of that, hell probably most, is my choice of major.  However, I know several friends and relatives with degrees in practical disciplines such as engineering or science that are finding the job search equally if not more difficult than me.  I at least have plenty of practical experience to lay on the table.  I simply don't think there is as much value in a BA or BS when the job prospects are better for someone with trade school or practical experience.  I get the feeling that most people want a degree for its perceived prestige more than any practical benefit they gain from it.

Okay, hot button issue for me.  A few things to consider:1. Schools do not control how much a student takes out in student loans.  The amount of the loan can cover tuition, fees, books, and living expenses.  So a student going to school with, let’s say, $30,000 in tuition, $8000 in books, $3000 in fees, $20,000 in room & board ($61,000) can take out loans in excess of $100,000.  2. The federal student loan process is broken, to say the least.  We, as a society, encourage students to go into debt to go to school by making financial aid easier and easier to get.  The unintended result is what is becoming known as the “Bennett Hypothesis” – public schools lose state tax funding, so they raise tuition rates and fees, federal student aid covers the increase, so budgets are met, and excess funds are fed back into the university.  Since all excess funds are poured back into the university, and state tax supported funds are not increased, tuition and fees are increased again, federal student aid makes up the difference, and again, schools meet budgets, pouring excess funds back into the school.  It’s a vicious cycle that brings in more tuition revenue that is used less and less in actually educating the student.3. For state schools, it is a mix of tuition and fee increases (covered by federal student aid) and increasing the number of out-of-state students who pay higher rates (which again is covered by federal student aid).  (See where this is going?)4. I think that it is also the result of the stigma associated with higher education – yes, stigma.  Students are pushed into schools they cannot afford, and are taught that it is okay (if not expected) to go into debt to go to school.  Students are encouraged to attend the best school that they can get into – without regard to what it costs, and are then deemed to have “settled” if they have the temerity to actually attend a “lesser” school that they (or their parents) can actually afford.5. Higher education is an investment in our (and our children’s) futures, but how much have we failed if we still have people going into debt not knowing the terms of their loans or how it will be repaid?I think that the matter is further complicated by the growing perception that the purpose of going to college is to get a job.  More and more, students and their parents seem to believe that a college degree should be come with a guarantee of a job – and likewise, it seems that more and more, employers are expecting colleges to train graduates for a particular job.  This is quite a paradigm shift from what I remember – which is for a college to provide an education and produce well rounded citizens who are capable of learning, researching, and making well informed decision.  When I hear someone ask, “If I get a degree ____, will it get me job as a ____?”  My reply is always a simple and emphatic “No.”  A college degree will not get you a job, that’s not what it is designed to do – just like a new suit won’t get you a job.  A college degree may help you get a job, but it is the full package of “YOU” that the company is hiring – what else do you bring to the table other than this degree?I think the issue is that people are seeking a college degree as some sort of panacea, when instead they should be seeking a college education.Sorry, I think my “old fogey” is showing.