Please watch this video: Peter Schiff on college tuition
Schiff says that colleges would not hike tuition if federal government loan programs did not in exist. In other words, if there were no federal government student loans available, the colleges could not increase tuition. Thus, the feds give the colleges the right to jack up tuition to astronomical proportions.
What do you think?
Schiff also says that the value of a Bachelor’s degree is now lessened because virtually anyone can receive this degree. Thirty, forty years ago, a Bachelor’s degree meant something. Schiff says to be competitive you now need a Master’s or a PhD. That means years in school and years of student loans.
There is one point in particular we’d like to comment on: Schiff states when his father was in college, he worked summers as a waiter and that was how he paid for school. Although we agree with this work ethic, Schiff must understand today’s world is very different. College students are now expected to work at unpaid internships for forty hours or more a week. This internship is expected to lead to excellent contacts and a job after graduation. Yet in this deep recession, students are not receiving these job offers after graduating. So all of that hard work and time gone into an unpaid internship is not being compensated in the end. The Catch-22 is students need these internships on their resume.
Another hard fact of this economy is summer jobs are few and far between. Full-time workers are now taking these extended summer hours. And with state budget cuts, municipal swimming pools and daycare programs are now being cut. Thus, the college student on summer break has little opportunity to make money.
Let us know what you think of Schiff’s commentary. Are the feds really to blame for this college financial aid crisis? Do you foresee the cost of college to keep rising until it’s simply not affordable for anyone except the very wealthy?
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