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Then how about limiting the loan amount strictly to tuition+books – something that’s clearly quantifiable and justfied by receipts etc.? Let the students figure out how to pay for the living expenses. Maybe that would force reconsidering saving for living expenses, and also housing and location of the college.

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[quote=UCGal][quote=Scarlett]I was reading a good post by Dr. Housing Bubble

Financial land of perpetual bubbles – California technology, real estate, and now higher education bubbles. In 1980 the median California household income would have purchased 17 UC bachelor’s degrees. Today it can barely purchase one UC degree.

What do you think about the college bubble? What do you think it is going to happen, and when?[/quote]
I think the bubble is already here. Tuitions and fees are high, and with budget cuts, it’s hard for students at public schools to get classes.

I’ve been socking money into the 529’s for the boys. I’m hoping they’ll be able to go to a UC or CS school.

I think WW has a point – college education doesn’t mean a job anymore… So as the kids get closer, perhaps we’ll encourage them to go to a vo-tech school… plumbers and mechanics make decent $$.

I do look at college (or vo-tech) as being for job preparation – if I’m paying for it. I’ll have the same strings attached that my parents did: career oriented major, decent grades or you’re cut off etc. (I wanted to be a poli-sci major and was told “good luck paying for that – we won’t”.)

As far as when the bubble will burst… It’s reaching the unsustainable point. In theory, it has to burst at some point. In the meantime I keep putting $ in the 529’s.[/quote]

I agree both with you and WW… Yes the bubble is here… and hope it’s going to burst sooner than later. I also started putting a little every month ($100-200) in 529 since my daughter was born, figuring that with the compound interest and starting at birth it would be enough for a nice private university degree tuition…Wrong!!! Not even a UC one.

But why should the bubble burst? Enough people want degrees and are willing to borrow – for now… If it will just flatten out that’s still way high, unless salaries increase substantially (don’t think so).

[Scarlett]

[quote=UCGal][quote=Scarlett]I was reading a good post by Dr. Housing Bubble

Financial land of perpetual bubbles – California technology, real estate, and now higher education bubbles. In 1980 the median California household income would have purchased 17 UC bachelor’s degrees. Today it can barely purchase one UC degree.

What do you think about the college bubble? What do you think it is going to happen, and when?[/quote]
I think the bubble is already here. Tuitions and fees are high, and with budget cuts, it’s hard for students at public schools to get classes.

I’ve been socking money into the 529’s for the boys. I’m hoping they’ll be able to go to a UC or CS school.

I think WW has a point – college education doesn’t mean a job anymore… So as the kids get closer, perhaps we’ll encourage them to go to a vo-tech school… plumbers and mechanics make decent $$.

I do look at college (or vo-tech) as being for job preparation – if I’m paying for it. I’ll have the same strings attached that my parents did: career oriented major, decent grades or you’re cut off etc. (I wanted to be a poli-sci major and was told “good luck paying for that – we won’t”.)

As far as when the bubble will burst… It’s reaching the unsustainable point. In theory, it has to burst at some point. In the meantime I keep putting $ in the 529’s.[/quote]

I agree both with you and WW… Yes the bubble is here… and hope it’s going to burst sooner than later. I also started putting a little every month ($100-200) in 529 since my daughter was born, figuring that with the compound interest and starting at birth it would be enough for a nice private university degree tuition…Wrong!!! Not even a UC one.

But why should the bubble burst? Enough people want degrees and are willing to borrow – for now… If it will just flatten out that’s still way high, unless salaries increase substantially (don’t think so).

[Scarlett]

[quote=UCGal][quote=Scarlett]I was reading a good post by Dr. Housing Bubble

Financial land of perpetual bubbles – California technology, real estate, and now higher education bubbles. In 1980 the median California household income would have purchased 17 UC bachelor’s degrees. Today it can barely purchase one UC degree.

What do you think about the college bubble? What do you think it is going to happen, and when?[/quote]
I think the bubble is already here. Tuitions and fees are high, and with budget cuts, it’s hard for students at public schools to get classes.

I’ve been socking money into the 529’s for the boys. I’m hoping they’ll be able to go to a UC or CS school.

I think WW has a point – college education doesn’t mean a job anymore… So as the kids get closer, perhaps we’ll encourage them to go to a vo-tech school… plumbers and mechanics make decent $$.

I do look at college (or vo-tech) as being for job preparation – if I’m paying for it. I’ll have the same strings attached that my parents did: career oriented major, decent grades or you’re cut off etc. (I wanted to be a poli-sci major and was told “good luck paying for that – we won’t”.)

As far as when the bubble will burst… It’s reaching the unsustainable point. In theory, it has to burst at some point. In the meantime I keep putting $ in the 529’s.[/quote]

I agree both with you and WW… Yes the bubble is here… and hope it’s going to burst sooner than later. I also started putting a little every month ($100-200) in 529 since my daughter was born, figuring that with the compound interest and starting at birth it would be enough for a nice private university degree tuition…Wrong!!! Not even a UC one.

But why should the bubble burst? Enough people want degrees and are willing to borrow – for now… If it will just flatten out that’s still way high, unless salaries increase substantially (don’t think so).

[Scarlett]

[quote=UCGal][quote=Scarlett]I was reading a good post by Dr. Housing Bubble

Financial land of perpetual bubbles – California technology, real estate, and now higher education bubbles. In 1980 the median California household income would have purchased 17 UC bachelor’s degrees. Today it can barely purchase one UC degree.

What do you think about the college bubble? What do you think it is going to happen, and when?[/quote]
I think the bubble is already here. Tuitions and fees are high, and with budget cuts, it’s hard for students at public schools to get classes.

I’ve been socking money into the 529’s for the boys. I’m hoping they’ll be able to go to a UC or CS school.

I think WW has a point – college education doesn’t mean a job anymore… So as the kids get closer, perhaps we’ll encourage them to go to a vo-tech school… plumbers and mechanics make decent $$.

I do look at college (or vo-tech) as being for job preparation – if I’m paying for it. I’ll have the same strings attached that my parents did: career oriented major, decent grades or you’re cut off etc. (I wanted to be a poli-sci major and was told “good luck paying for that – we won’t”.)

As far as when the bubble will burst… It’s reaching the unsustainable point. In theory, it has to burst at some point. In the meantime I keep putting $ in the 529’s.[/quote]

I agree both with you and WW… Yes the bubble is here… and hope it’s going to burst sooner than later. I also started putting a little every month ($100-200) in 529 since my daughter was born, figuring that with the compound interest and starting at birth it would be enough for a nice private university degree tuition…Wrong!!! Not even a UC one.

But why should the bubble burst? Enough people want degrees and are willing to borrow – for now… If it will just flatten out that’s still way high, unless salaries increase substantially (don’t think so).

[Scarlett]

[quote=UCGal][quote=Scarlett]I was reading a good post by Dr. Housing Bubble

Financial land of perpetual bubbles – California technology, real estate, and now higher education bubbles. In 1980 the median California household income would have purchased 17 UC bachelor’s degrees. Today it can barely purchase one UC degree.

What do you think about the college bubble? What do you think it is going to happen, and when?[/quote]
I think the bubble is already here. Tuitions and fees are high, and with budget cuts, it’s hard for students at public schools to get classes.

I’ve been socking money into the 529’s for the boys. I’m hoping they’ll be able to go to a UC or CS school.

I think WW has a point – college education doesn’t mean a job anymore… So as the kids get closer, perhaps we’ll encourage them to go to a vo-tech school… plumbers and mechanics make decent $$.

I do look at college (or vo-tech) as being for job preparation – if I’m paying for it. I’ll have the same strings attached that my parents did: career oriented major, decent grades or you’re cut off etc. (I wanted to be a poli-sci major and was told “good luck paying for that – we won’t”.)

As far as when the bubble will burst… It’s reaching the unsustainable point. In theory, it has to burst at some point. In the meantime I keep putting $ in the 529’s.[/quote]

I agree both with you and WW… Yes the bubble is here… and hope it’s going to burst sooner than later. I also started putting a little every month ($100-200) in 529 since my daughter was born, figuring that with the compound interest and starting at birth it would be enough for a nice private university degree tuition…Wrong!!! Not even a UC one.

But why should the bubble burst? Enough people want degrees and are willing to borrow – for now… If it will just flatten out that’s still way high, unless salaries increase substantially (don’t think so).

[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….

[Author]

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