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Sorry, I misspoke, it’s not completely made up by any means at the fed level. In CA, it’s far short – that’s why students are protesting.

As for Yale, no, I don’t think loans are a primary driver of the increase in tuition – but it can create some price distortion. There is a monopoly over a Yale education. Wealth and population have increased 10x, while admission numbers haven’t. If government loans went away for Yale, do I think they could still charge 50k a year for 10,000 students?

So you mean people are protesting that their free ride is being taken away?

Well, at least people aren’t having as much of their wealth transferred to others now, I say let them protest, and when they are done, they can go and get a job.

And it’s not just the loans, its all the welfare they receive. Such as regular funding from the budget, just the general fund they receive.

If you give the college let’s say, $10 million dollars every year. After a few years, they stop doing any cost reduction methods at all because they government has them backstopped, and you end up with a monster with costs increasing every year, hence higher tuition costs, especially once government welfare stops coming in.

People are protesting larger classes, rising tuitions, and overall worse conditions. It’s better to have wealth transferred by being born into it, rather than the opportunity to learn and work your way into wealth? I guess we look at things differently.

Sure, education has some amount of waste – but so do large corporations. Let’s have a counterfactual – assume a world with no government loans – Do yales, harvards etc still exist with 40-50k/year tuition? i think it’s fair to say that wouldn’t change – maybe they’d use their massive endowments to make education free or whatnot…

See, that is where your analysis if flawed, you say that 50k a year tuition wouldn’t change if the demand was dramatically reduced due to no government subsidized loans.

So who is going to pick up the demand for 10k students a year per school? The population can’t afford school without grants, loans, etc….

They would have to reduced costs to be able to lower tuition to be able to attract demand for their services.

Just look at what has happened to the auto industry without loans?

Silly guy? I suppose you think prescriptions would still be artificially high without medicade and medicare keeping the demand artificially high?

If you cut our medicare and medicade, which is 55% of all healthcare, the prices would have to fall because the demand isn’t there for there product, if they continued to try and charge the artificially high price, there inventories would be overflowing because it is unaffordable, they would have to lower prices to move product, same with education.

The auto industry collapsed – but it hasn’t created a wave of cheaper cars.

For 10k students going to top tier schools, the people that can afford to go to those schools can, or would leverage their homes. i know a shocking number of people who have done that (although that’s harder to do nowadays).

Well, first off, the auto’s are being heavily subsidized right now, so the fact price haven’t fallen only reflects that subsidizing them keeps prices high.

And ya, some people would still be going to college with no loans, but only a few, they would have to massively reduce costs.

And people you know now are only leveraging their homes because the government has created an environment where college is unaffordable without government aid.

How do you explain 32 days factory pay paying for Yale?

As for medicare, sure – but would you rather have less research and development into breakthrough drugs? Similarly for education – would you rather have a world without basic research, and breakthroughs like… say, the internet?

Well, see, you fail to understand how markets work.

Without the drug companies being heavily subsidized they would cut costs as well, they would be paying people outragous benefits and pay, etc….and the companies they deal with, would have to lower there prices as well to sell there services to the drug companies.

The whole market would adjust to market conditions. You fail to understand that and seem to think that the drug companies would be paying secretaries 100k a year.

The private market made the internet what it is, not the government.

The thing is that basic infrastructure for setup was created by public institutions. The internet, the research at Google, hell, even Yahoo – yes, they all eventually became private institutions – but they started because of public funding. They might not have necessarily come about in the absence of long-term basic, unprofitable research – at least not in the form it is today.

The basic infrastructure of the internet did start as public funding yes, but is was being used by government scientists. It wasn’t anything like it is today.

And also, you operate on the assumption that this never would have occurred in the private market. You think that the only reason we have the internet is because of the government.

And also, where in the Constitution does it say the government can create and fund an internet.

Yet another example of the government transferring wealth

let govt pump the money into the system and inflate it by stimulation stimulation stimulation. Do we know what happens to over stimulated athelete?…. the athelete is drug adict and will end up unable to perform to his/her original strenth too. The athelete will be admitted for rehab.

100000$ . This is the debt most of the students with 4 yr college degree. For this money one can get 45 years of college education in India.

Yes, I’d like 2 C more people in college – if they want it. Gov prgs are not what’s driving costs. Inflation is & schools R 2 admin-heavy. I worked my arse off to pay tuition, all summer long at construction & mfg jobs. There were times when I had three jobs and got by on 4 hours of sleep a day, for weeks at a time. And no, I don’t look down on people who don’t have degrees. Wisdom rarely comes from schools, it’s self taught. & anybody can B educated, degree or no degree, if they seek 2 learn.

govt rockets the cost of anything it throws money at

Well said Peter I couldn’t agree more!

Anytime government subsidizes anything the cost goes up

That one guy was AFTER you on Face the State.

Guys this is such a goofy video — my name is freemoviebonanza , c o m

By 2020, it will cost $500,000 to put one student through 4 years of college. Something’s gotta gove.

Sorry but he didn’t provide anything that showed that education subsidies directly inflates college tuition. Now it may or may have an effect of some sort as suggested but Schiff did not provide anything concrete delineating a direct link.

Given his cultish slavery to a fictional ideology which raises red flags with me I have to question his reasoning.

Brilliant! Thanks for putting things in perspective!