I think that the freely available loans-- made to students who often have no credit history-- allowed schools to continue the steep rise in tuition. The loans used to come with a very low interest rate, but it has crept higher. And at the same time salaries have edged lower.
Example: law school. When I started law school it was expensive but not crazy-expensive, and jobs were plentiful and paid well. Ten years later, law firms were all trying to "do more with less" and squeeze more work out of their hires while lowering starting salaries. After I left my full-time job, I was doing some pleasant legal temp work with a bunch of younger people, most of who had graduated law school but had not yet secured jobs.
One afternoon, a young lady left to go on an interview. She came back in tears and told us that the law firm offered her 40k to start, and she'd be expected to bill 80 hours a week, working 7 days a week. After a year, if they wanted to keep her on, she'd get a small increase. This is in NYC where you can barely squeak by on 40k/year. She was 240k in debt!
I think that the freely available loans-- made to students who often have no credit history-- allowed schools to continue the steep rise in tuition. The loans used to come with a very low interest rate, but it has crept higher. And at the same time salaries have edged lower.
Example: law school. When I started law school it was expensive but not crazy-expensive, and jobs were plentiful and paid well. Ten years later, law firms were all trying to "do more with less" and squeeze more work out of their hires while lowering starting salaries. After I left my full-time job, I was doing some pleasant legal temp work with a bunch of younger people, most of who had graduated law school but had not yet secured jobs.
One afternoon, a young lady left to go on an interview. She came back in tears and told us that the law firm offered her 40k to start, and she'd be expected to bill 80 hours a week, working 7 days a week. After a year, if they wanted to keep her on, she'd get a small increase. This is in NYC where you can barely squeak by on 40k/year. She was 240k in debt!
I agree; tuition really seemed to start rising when the government took over the loans.
I would have come back in tears too, if I were her!
It is only a matter of time before it all crashes down.
College is irrelevant now.