« Last post by forgetful on January 20, 2017, 09:33:17 PM »
Are you asking if home debt skewed home prices? Where you in a coma from 2006 to 2010, the financial crisis?
Your last line is correct, college tuition is priced like art or Jewelry. If it does not cost a ton of money, it must not be good. So we base our perception of what is a good school by how much it costs.
Home prices were skewed slightly, because of predatory loans tied to assuming annual increases in home values of 10% or more. That led to immense pressure on the system that was unsustrightble, coupled to fraudulent activities by major banks it led a massive economic collapse. The economic collapse made home buying unattrightble exacerbating the slight inflation of home values. In the vast majority of areas, the collapse has fully rebounded and home valuations are back to where they were pre-collapse. In some markets home values have skyrocketed again. My home, purchased at the bottom in 2010, is now worth 70% more than we paid for it in 2010. The home valuation issues were more to do with the economic collapse (and response to fraudulent banking activities) than it was to availability of loans.
Student loans are permanent, there is no declaring bankruptcy and they often persist through death. They (in response to buck chuckler) are not artificially depressed rates, instead they are actually usually well above market rate for other types of loans, especially given that they persist through bankruptcy.
That's why banks love doing student loan refinances, guaranteed revenue, little risk.
Your comment on us determining educational value based on how much it costs is patently false and couldn't be more ignorant of the truth.
What is a better college USC or BYU? I would say they are about equal. USC costs about 55k per year, BYU 5.5K. There are an infinite number of examples like this.
I've never met a student that was thinking about going to go to a college and then heard it was cheap and said...nah, must be a bad University. I have heard them justify going to an expensive college by realization of the quality of education or (and often) by the overall quality of the experience.
The latter is most often the justification. Kids/parents believe they are not paying for the education, but the lifetime worth of experiences, whose value cannot be emphasized enough.
Business people trying to take over academia have over focused on the latter by providing bigger and more stuff not related to education that has driven up costs and led to gross inefficiency in academia.
I seriously advise you to read fall of the faculty if you have an interest in this area, inform yourself of all sides of the issue first, before touting and pushing the uninformed ideals of people like Thiel. The answer is typically somewhere in the middle, right now you are choosing one side...the least informed side.