College bubble and housing bubble

[Scarlett]

Then I think a first step should be changing those rules. Somehow they remind me too much of the income-stated loans for houses…How about documenting all that?

I understand even if family helps them it may not be enough, but, then loan amount should be correspondingly less. I guess it is impossible to know how much the familly helps.

But anyhow loans for living expenses should really cover bare minimum – like for housing an average rent in student housing or half the rent (you get 1 roommate) of a 1 bdr place close to univ; for food – just the equivalent of 2 meal a day at the cafeteria. A small transportation allowance if not living on campus. Really, if he needs more, then the student can take odd jobs or tutoring. or help from family.

Actually the first thing the high-school students should be taught is the compound interest calculation and how much debt they would acquire in college and how long it takes to pay it off, and how long it takes to save for retirement (I know, who think about that at 18?) – so they are not completely duped and avoid college loans like the plague they are.

[Scarlett]

[quote=bearishgurl]
There is already an overflow of qualified applicants for CA university billets and this DID NOT translate into more admissions or classes for students. In addition, the fees have been raised at least 10 times in the CSU system in the last eight or so years. It appears to me that the two systems are trying to eliminate more pension obligations so are letting go instructors before they vest. Meanwhile, the ones that are retiring are not being replaced. One business department head at SFSU told me that he had never been asked to lay off as many instructors as he had to in 2010 in his 30+ years in the system.[/quote]

I can believe that. But then the supply is very limited – and kept artificially that way – and the demand very high – so why not increase the fees – that are plenty of people qualified and willing to pay (or borrow)….that’s the bubble. Well, this has to burst sometime.

I just wonder how the dynamics will change when more people, for example in CA, can’t get in UC or CS and have to go out of state or private and therefore they (or their parents) HAVE to borrow more money. And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….

[Scarlett]

[quote=bearishgurl]
There is already an overflow of qualified applicants for CA university billets and this DID NOT translate into more admissions or classes for students. In addition, the fees have been raised at least 10 times in the CSU system in the last eight or so years. It appears to me that the two systems are trying to eliminate more pension obligations so are letting go instructors before they vest. Meanwhile, the ones that are retiring are not being replaced. One business department head at SFSU told me that he had never been asked to lay off as many instructors as he had to in 2010 in his 30+ years in the system.[/quote]

I can believe that. But then the supply is very limited – and kept artificially that way – and the demand very high – so why not increase the fees – that are plenty of people qualified and willing to pay (or borrow)….that’s the bubble. Well, this has to burst sometime.

I just wonder how the dynamics will change when more people, for example in CA, can’t get in UC or CS and have to go out of state or private and therefore they (or their parents) HAVE to borrow more money. And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….

[Scarlett]

[quote=bearishgurl]
There is already an overflow of qualified applicants for CA university billets and this DID NOT translate into more admissions or classes for students. In addition, the fees have been raised at least 10 times in the CSU system in the last eight or so years. It appears to me that the two systems are trying to eliminate more pension obligations so are letting go instructors before they vest. Meanwhile, the ones that are retiring are not being replaced. One business department head at SFSU told me that he had never been asked to lay off as many instructors as he had to in 2010 in his 30+ years in the system.[/quote]

I can believe that. But then the supply is very limited – and kept artificially that way – and the demand very high – so why not increase the fees – that are plenty of people qualified and willing to pay (or borrow)….that’s the bubble. Well, this has to burst sometime.

I just wonder how the dynamics will change when more people, for example in CA, can’t get in UC or CS and have to go out of state or private and therefore they (or their parents) HAVE to borrow more money. And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….

[Scarlett]

[quote=bearishgurl]
There is already an overflow of qualified applicants for CA university billets and this DID NOT translate into more admissions or classes for students. In addition, the fees have been raised at least 10 times in the CSU system in the last eight or so years. It appears to me that the two systems are trying to eliminate more pension obligations so are letting go instructors before they vest. Meanwhile, the ones that are retiring are not being replaced. One business department head at SFSU told me that he had never been asked to lay off as many instructors as he had to in 2010 in his 30+ years in the system.[/quote]

I can believe that. But then the supply is very limited – and kept artificially that way – and the demand very high – so why not increase the fees – that are plenty of people qualified and willing to pay (or borrow)….that’s the bubble. Well, this has to burst sometime.

I just wonder how the dynamics will change when more people, for example in CA, can’t get in UC or CS and have to go out of state or private and therefore they (or their parents) HAVE to borrow more money. And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….

[Scarlett]

[quote=bearishgurl]
There is already an overflow of qualified applicants for CA university billets and this DID NOT translate into more admissions or classes for students. In addition, the fees have been raised at least 10 times in the CSU system in the last eight or so years. It appears to me that the two systems are trying to eliminate more pension obligations so are letting go instructors before they vest. Meanwhile, the ones that are retiring are not being replaced. One business department head at SFSU told me that he had never been asked to lay off as many instructors as he had to in 2010 in his 30+ years in the system.[/quote]

I can believe that. But then the supply is very limited – and kept artificially that way – and the demand very high – so why not increase the fees – that are plenty of people qualified and willing to pay (or borrow)….that’s the bubble. Well, this has to burst sometime.

I just wonder how the dynamics will change when more people, for example in CA, can’t get in UC or CS and have to go out of state or private and therefore they (or their parents) HAVE to borrow more money. And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….

[bearishgurl]

There is another solution if your recent HS grad is qualified for and having difficulty getting accepted into CSU/UC as a freshman or is a junior who is unable to enter into the program of their choice in CSU/UC after community college. If you have willing relatives in another state, you can send your kid to live with them where they will have to get some kind of work (even min wage) immediately and start producing checkstubs and eventually W-2(s) to prove they have been a resident of that state for at least one year. Between you and your kid, you could compensate the host relative. It wouldn’t be a crime to take a year-plus off in the college-age years to work. They would absolutely HAVE to work to prove residency, though, AND claim themselves on their tax return(s). Most states are very strict on accepting young students as residents who possess recent out-of-state HS diplomas or Associate degrees. They ALL want the out-of-state tuition if they can get it. They will not accept “living with grandma” as being a resident. The kid could have just arrived last week.

[bearishgurl]

There is another solution if your recent HS grad is qualified for and having difficulty getting accepted into CSU/UC as a freshman or is a junior who is unable to enter into the program of their choice in CSU/UC after community college. If you have willing relatives in another state, you can send your kid to live with them where they will have to get some kind of work (even min wage) immediately and start producing checkstubs and eventually W-2(s) to prove they have been a resident of that state for at least one year. Between you and your kid, you could compensate the host relative. It wouldn’t be a crime to take a year-plus off in the college-age years to work. They would absolutely HAVE to work to prove residency, though, AND claim themselves on their tax return(s). Most states are very strict on accepting young students as residents who possess recent out-of-state HS diplomas or Associate degrees. They ALL want the out-of-state tuition if they can get it. They will not accept “living with grandma” as being a resident. The kid could have just arrived last week.

[bearishgurl]

There is another solution if your recent HS grad is qualified for and having difficulty getting accepted into CSU/UC as a freshman or is a junior who is unable to enter into the program of their choice in CSU/UC after community college. If you have willing relatives in another state, you can send your kid to live with them where they will have to get some kind of work (even min wage) immediately and start producing checkstubs and eventually W-2(s) to prove they have been a resident of that state for at least one year. Between you and your kid, you could compensate the host relative. It wouldn’t be a crime to take a year-plus off in the college-age years to work. They would absolutely HAVE to work to prove residency, though, AND claim themselves on their tax return(s). Most states are very strict on accepting young students as residents who possess recent out-of-state HS diplomas or Associate degrees. They ALL want the out-of-state tuition if they can get it. They will not accept “living with grandma” as being a resident. The kid could have just arrived last week.

[bearishgurl]

There is another solution if your recent HS grad is qualified for and having difficulty getting accepted into CSU/UC as a freshman or is a junior who is unable to enter into the program of their choice in CSU/UC after community college. If you have willing relatives in another state, you can send your kid to live with them where they will have to get some kind of work (even min wage) immediately and start producing checkstubs and eventually W-2(s) to prove they have been a resident of that state for at least one year. Between you and your kid, you could compensate the host relative. It wouldn’t be a crime to take a year-plus off in the college-age years to work. They would absolutely HAVE to work to prove residency, though, AND claim themselves on their tax return(s). Most states are very strict on accepting young students as residents who possess recent out-of-state HS diplomas or Associate degrees. They ALL want the out-of-state tuition if they can get it. They will not accept “living with grandma” as being a resident. The kid could have just arrived last week.

[bearishgurl]

There is another solution if your recent HS grad is qualified for and having difficulty getting accepted into CSU/UC as a freshman or is a junior who is unable to enter into the program of their choice in CSU/UC after community college. If you have willing relatives in another state, you can send your kid to live with them where they will have to get some kind of work (even min wage) immediately and start producing checkstubs and eventually W-2(s) to prove they have been a resident of that state for at least one year. Between you and your kid, you could compensate the host relative. It wouldn’t be a crime to take a year-plus off in the college-age years to work. They would absolutely HAVE to work to prove residency, though, AND claim themselves on their tax return(s). Most states are very strict on accepting young students as residents who possess recent out-of-state HS diplomas or Associate degrees. They ALL want the out-of-state tuition if they can get it. They will not accept “living with grandma” as being a resident. The kid could have just arrived last week.

[an]

[quote=Scarlett] And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….[/quote]
AFAIK, you can’t default on a student loan. That’s why they can give student loans at such a low rate, because they know you have to pay it back.

http://en.wikipedia.org/wiki/Student_loan_default_in_the_United_States

[an]

[quote=Scarlett] And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….[/quote]
AFAIK, you can’t default on a student loan. That’s why they can give student loans at such a low rate, because they know you have to pay it back.

http://en.wikipedia.org/wiki/Student_loan_default_in_the_United_States

[an]

[quote=Scarlett] And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….[/quote]
AFAIK, you can’t default on a student loan. That’s why they can give student loans at such a low rate, because they know you have to pay it back.

http://en.wikipedia.org/wiki/Student_loan_default_in_the_United_States

[an]

[quote=Scarlett] And those people upon graduation will default on the loans because they won’t have high enough paid jobs. Or they keep piling on more debt, making that much harder to marry and have kids and nearly impossbile to buy a house…. Hmmm. maybe that will push the house prices down….[/quote]
AFAIK, you can’t default on a student loan. That’s why they can give student loans at such a low rate, because they know you have to pay it back.

http://en.wikipedia.org/wiki/Student_loan_default_in_the_United_States

[Author]

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