Peter Schiff explains how government intervention drives up college tuition

[ronpaulkid]

great clip thanks!

[historyboy12]

Has Schiff not thought about the number of students in total, or the number in regards to population? Basic supply and demand. Yale can charge high fees because plenty of people WANT places at an Ivy league. It's not just americans but wealth international students.

[LeifEiriksson]

@historyboy12

Sure places like Yale can charge higher tuition than other institutions b/c it is more prestigious and it is more competitive. But why are they still going up during the greatest recession since the1930's? For the vast majority of (public) colleges though the acceptance rate is well above 50%, which isn't the same as Yale's 5 or 10%, yet prices are still skyrocketing and has nothing to do with competition.

[historyboy12]

As a British student who was considering studying in the US, I was only aware of the historical costs of the Ivy league institutions and also Chicago/MIT etc. But I preseume that in state colleges fees are not rising at the same pace? Fees would rise for the same reason as the UK if the govt didn't impose a cap; our worst recession since the 1930s caused a 20-30% surge in applications nationally.

[historyboy12]

In the UK, private schools such as my old one had increased fees at 10% yearly for the last 2 decade and continue to do so. There's no government backed loan here or support either. It's driven by demand for places by domestic and international students.

The domestic increase is due to firstly the strong rise in real wages in the last few decades within the upper strata of US and UK society and equity due to the housing bubble. Although easy lending conditions probably did play some role.

[xMaXiMuSx]

@historyboy12

you're missing the point.. yes a few really top schools would be able to charge very high but in the USA every and any crappy school is charging 20,000-50,000 because of goverment guaranteed loan.

[LeifEiriksson]

@historyboy12 (continued)

But it comes down to that it doesn't matter how many kids "want" to go to college, it's how many can afford to go. With no government assistance tuition would have to come down because almost no one can afford it now, no? If government weren't guaranteeing loans for everyone and then college tuitions were still going up, then there's a good chance I'd agree with you that it is just because there are more students fighting for the same # of spots.

[Rensune]

@historyboy12 I went to the cheapest school in my state and now I owe them 48k (with the in state tuition). His argument applies across the board.

[historyboy12]

An undergraduate education at Oxford, Cambridge, the LSE, medical school, dental school or vetinary school is only £3,125 a year or like $5,000. We also get grants and interest free loans in the UK. Thank god for the government stopping world class universities charging $25,000+ a year here! And most top UK universities are amongst the best in the world too.

[jimmyd3277]

look at Ucla raise 35% LOL so truth

[dankeewolnir4042]

i wish i heard this 7 yr ago...