Now main stream media is picking up on this problem. Forbes has an article about Universities On The Brink:
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Higher education in America, historically the envy of the world, is rapidly growing out of reach. For the past quarter-century, the cost of higher education has grown 440%, according to the National Center for Public Policy and Education, nearly four times the rate of inflation and double the rate of health care cost increases. The cost increases have occurred at both public and private colleges.
Like many situations too good to be true--like the dot-com boom, the Enron bubble, the housing boom or the health care cost explosion--the ever-increasing cost of university education is not sustainable.
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Good article to read.
(Hat tip: Instapundit, naturally)
3 comments:
I wonder about this also. I don't know how kids and parents are affording it.
Then I heard stories. People we know are taking out a mortgage on their just paid for home, or home equity lines to the max amount possible.
Another thing they do is cash out their IRAs. Even taking the 10% penalty and paying taxes on it, they liquidate that and pay cash for their kids to go to college.
These parents who are in their 40s or early 50s then have zero savings for retirement and loans against their home. They joke they will never retire (most are dual income families as it is). They will work until the day they die.
Or if one or both lose their jobs, be unable to pay their mortgage and wind up renting or declaring bankruptcy?
If one spouse in a dual income family who spends all their income gets sick with a major illness like Cancer or hurts themselves and can't work how will they survive?
I don't have these answers.
I have special needs kids and can't do the remortgage thing. My children will get help if they get in, but not enough, likely.
My own "gifted" son is considering just not doing anything. At all. Talk about discouragement...
ChristineMM - It seems like there are many parents who really are not in a position to send their children to college.
I think there is a problem when a child is given a college education, without having to earn it. He doesn't take it as seriously. We plan to help our children, but they will need to also contribute.
Happy Elf Mom - sorry to read about your "gifted" son. Hopefully he will come to realize the value of college. Good luck.
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