Peter Schiff on why college is so expensive (loans)

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http://www.youtube.com/watch?v=w4P3oezI2s8

Do you agree that the 18 year olds are the most inexperienced and unqualified borrowers and should not be given a 100k credit line to go to college and that this inflates what colleges are charging?

I'm actually one of the subscribers to Peter Schiff's channel, because he actually knows what he's talking about. He definitely makes some really, really good points in that video. Like when he says that college SHOULD be cheaper than it used to be, because of vast technological innovations that have taken place in recent history.

If anyone's not convinced though, take this example. If you want to buy a good-sized dinner in Iran, it costs about $2. If you want to buy a good-sized dinner in the USA, it'll cost at least $15 most likely. What's the difference between these 2 countries? People in the United States generally have more money. This shows that if people have more money, businesses/colleges/whatever can charge more money for goods and services. It's basic supply and demand. So when the government backs tens of thousands of dollars in college loans, that means colleges can get tens of thousands of more dollars from you.

I like Peter Schiff as he outlines the problems well, however, his solutions are wacky.

I more or less agree with this. I'll give him credit for having a good eye for the present economic crisis, but don't trust anyone who thinks they definitively have the solutions.

A-freaking-men!

It is true that (1) the law has allowed most all of the consumer protections in lending to be gutted where student loans are concerned and (2) most college-aged kids are too naive about how economic realities operate to understand how bad an idea it is to borrow to pay for a college education (a lesson they quickly learn AFTER they leave school and go into repayment).

I believe 100% that the "easy credit" for college is largely responsible for (1) the explosion of new schools and new degree programs, and (2) the ever rising cost of tuition.

If only those who could afford schools could attend, or if credit for loans was only reserved for programs with high job placement (in demand fields) rates, schools would limit how many they take and they'd really watch costs. It's not like they don't do it now, but it's all about bodies in the chairs, and if "cash and carry" would be a disaster, we'd have identified the failures of our educational system long ago.