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De Omnibus Dubitandum - Lux Veritas

Saturday, September 7, 2013

Why Does College Cost So Much?

John C. Goodman | Sep 07, 2013
We spend about twice as much as other developed countries as a fraction of national output. Yet our results are mediocre. Public and private spending is growing much faster than our income ? putting us on a course that is clearly unsustainable. It appears we are buying quantity instead of value. Outcomes vary wildly from state to state. And programs that target the poor seem to be backfiring instead.
I could easily be talking about health care. Instead, I'm speaking about higher education ? making some of the same points that President Obama made the other day. Unfortunately, both fields have the same problem. The entity paying for the service all too often tends to be different from the person who is supposed to be benefiting.
Spending on higher education as a percent of GDP in the United States is about twice the OECD average (3.1% versus 1.5%). Yet our results are far from the top:…..
In 1964, federal student aid was a mere $231 million. By 1981, the feds were spending $7 billion on loans alone, an amount that doubled during the 1980s and nearly tripled in each of the following two decades, and is about $105 billion today. Taxpayers now stand behind nearly $1 trillion in student loans.
It appears that we are sending too many people to college these days. (There are 115,520 janitors in the United States with bachelor's degrees?)......To Read More….

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