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View Diary: GOP senator: Vocational school is the answer to high student loan debt (121 comments)

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  •  Cost of education (1+ / 0-)
    Recommended by:
    Whatithink

    Of course, the expanding student loan program is responsible for education costs that have far outstripped inflation-going up faster than inflation by a factor of 3.

    Like the home interest deduction, if you subsidize something the price usually goes up.

    With education, accredited and "good" degrees are relatively fixed in supply.  If you drive a wedge between what the college receives and what the student pays (through the loan subsidy), the price goes up because the effective demand has shifted.

    As an economist, I encounter these second order effects quite often.  Initially, the student loan program is a benefit.  Over time, the benefits accrue not to the student but to the scarce resource-in this case, the prestigious (and this includes many state universities) college.

    And what do the colleges, or to be more exact, college administrators, do with this extra money?  Hire more bureaucrats!  Cal Berkeley this year topped the number of professors they had with administrators.  Aren't you glad students are footing the bill for this?

    •  You might want to provide some (0+ / 0-)

      proof for this assertion:

      Of course, the expanding student loan program is responsible for education costs that have far outstripped inflation

      "Lone catch of the moon, the roots of the sigh of an idea there will be the outcome may be why?"--from a spam diary entitled "The Vast World."

      by bryduck on Wed Jul 17, 2013 at 05:12:06 PM PDT

      [ Parent ]

      •  Proof (1+ / 0-)
        Recommended by:
        Whatithink

        For proof, read Goldin (Harvard) and Cellini (George Washington) in the NBER research papers.  NBER is perhaps the most prestigious economic research organization in the world and has strict peer review.

        You might want to provide some logic as to why my assertion is not valid.

        Plus, why wouldn't anyone be interested in a valid explanation as to why something has risen in price 3x faster than inflation?
        Certainly professors salaries have not even kept up with inflation.  I would love to hear another analytically valid explanation besides "the lone catch of the moon.."

        Sorry, I expect left to be very bright.

        •  All assertions require proof (1+ / 0-)
          Recommended by:
          mike101

          before being accepted as fact by any thinking person. Otherwise we call it "faith." Not providing it is grounds for questioning, especially from a blog comment. Thank you for the references; are they freely available?

          "Lone catch of the moon, the roots of the sigh of an idea there will be the outcome may be why?"--from a spam diary entitled "The Vast World."

          by bryduck on Wed Jul 17, 2013 at 05:43:08 PM PDT

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          •  Yes, type NBER or Goldin and Cellini (0+ / 0-)

            But my argument (not fact) is based on logic not faith.  You offer no argument or logic, simply a quote that sounds like faith.  Your explanation for the education inflation phenomenon?  

            Remember, studies show liberals are smarter.  Do math.  Do logic.  Act like one.

            •  Wow, condescension and a (1+ / 0-)
              Recommended by:
              mike101

              lack of substantiation! I'm not posing a counter argument, I'm asking for you to prove yours. My initial digging showed yours to be full of it, btw:
              This abstract says:

              we find little evidence of the Bennett hypothesis among either public or lower-ranked private universities.
              But, it only covers a panel of 71 universities from 1983 to 1996, so maybe things have changed. Again, would you like to show me some proof?

              "Lone catch of the moon, the roots of the sigh of an idea there will be the outcome may be why?"--from a spam diary entitled "The Vast World."

              by bryduck on Wed Jul 17, 2013 at 06:08:56 PM PDT

              [ Parent ]

            •  Lastly, even your own cited paper (0+ / 0-)

              only covers the for-profit sector. They freely admit that the results are "mixed" when studies have tried to prove "Bennett":

              Previous research on the Bennett hypothesis
              has focused primarily on four-year public
              and non-profit colleges with mixed results.

              "Lone catch of the moon, the roots of the sigh of an idea there will be the outcome may be why?"--from a spam diary entitled "The Vast World."

              by bryduck on Wed Jul 17, 2013 at 06:17:58 PM PDT

              [ Parent ]

        •  It doesn't look like they are (0+ / 0-)

          readily available; I don't have a .gov email address. From the abstract I read a very tepid endorsement of your POV:

          The dollar value of the premium is about equal to the amount of grant aid and loan subsidy received by students in eligible institutions, lending some credence to a variant of the “Bennett hypothesis” that aid-eligible for-profit institutions capture a large part of the federal student aid subsidy.
          Would you care to elaborate for us who can't access that article?

          "Lone catch of the moon, the roots of the sigh of an idea there will be the outcome may be why?"--from a spam diary entitled "The Vast World."

          by bryduck on Wed Jul 17, 2013 at 05:51:00 PM PDT

          [ Parent ]

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