Biden's Student Debt Relief Plan

[aygart]

Look at home prices. That is not a cherry-picked luxury commodity. They have gone up way more than the CPI, no?

So lets now use the same high liquidity loan forgiveness to throw money at this item expecting a different result.

[CountValentine]

So home prices went up from 47.2k to over 400k+. That would be a 800%+ increase?

[CountValentine]

So lets now use the same high liquidity loan forgiveness to throw money at this item expecting a different result.

We are not discussing that in this scenario.

[yuneeq]

So home prices went up from 47.2k to over 400k+. That would be a 800%+ increase?

According to your link, house prices were $73,600 in 1980 and now $525,000, an increase of 613% which far outpaces CPI, and far less than 1184% for tuition increases. I know this isn't what you asked, but comparing house prices to tuition is apples to oranges, CPI's measurement of housing costs is a much better measurement of what families actually need to spend for housing.

[aygart]

Surprised this hasn't shown up here yet.

https://twitter.com/realDailyWire/status/1562503374150385665

[Ver hut gazugt]

I don’t think price controls work. Maybe a cap on government loans with a max tuition fee to qualify.

[CountValentine]

According to your link, house prices were $73,600 in 1980 and now $525,000, an increase of 613% which far outpaces CPI, and far less than 1184% for tuition increases. I know this isn't what you asked, but comparing house prices to tuition is apples to oranges, CPI's measurement of housing costs is a much better measurement of what families actually need to spend for housing.

If we are comparing increase as I thought we were then it is pretty straightforward. The link does have 73k, but every other site has 47.2. No matter which metric we use I think we can agree it is a big increase but not as large as the tuition increase.

[CountValentine]

Surprised this hasn't shown up here yet.

Has she changed that position?

[TimT]

https://twitter.com/SpeakerPelosi/status/1562470835641692164

[ExGingi]

Has she changed that position?

She's a politician. Politicians NEVER change their positions. Whatever the position of the moment is, has always been their position, no matter what evidence you might show to counter that.

[CountValentine]

She's a politician. Politicians NEVER change their positions. Whatever the position of the moment is, has always been their position, no matter what evidence you might show to counter that.

That is what ED's believe not the I's.

[Dan]

I don’t think price controls work. Maybe a cap on government loans with a max tuition fee to qualify.

Of course, that's how a negotiated deal should work. It's voluntary and offers a give and take.
But that takes time and effort instead of just a free for all that accomplishes little to solve the problem.

[TimT]

Don’t expect politicians to tackle this problem. They still want to get paid 6-digits for a speech, plus travel & hotel stay.

[aygart]

That is what ED's believe not the I's.

Then the Is are a MAJOR part of the problem.

[aygart]

Of course, that's how a negotiated deal should work. It's voluntary and offers a give and take.
But that takes time and effort instead of just a free for all that accomplishes little to solve the problem.

Who is trying to solve a problem?

[zh cohen]

I don’t think price controls work.

The price increases are the result of government intervention. @Dan is suggesting that they tailor their intervention (of guaranteeing loans) in a way that will limit their impact on prices.

[CountValentine]

The price increases are the result of government intervention.

This is the reason for the increase? Cutting state funding for public schools has nothing to do with it?
ETA: https://www.pbs.org/newshour/education/most-americans-dont-realize-state-funding-for-higher-ed-fell-by-billions

[zh cohen]

This is the reason for the increase?

It is a major factor.

Cutting state funding for public schools has nothing to do with it?

I don't know. One indication that it does, would be if public schools tuition is rising faster than private schools. Is it?

[CountValentine]

It is a major factor.

Source?

I don't know.

They lose billions in state aid and you don't know if they will cause tuition to go up? 

[zh cohen]

Source?They lose billions in state aid and you don't know if they will cause tuition to go up? 

1 - Depends how much of the budget (percentage wise) 9 billion is.
ETA: one number I found for total state spending in higher ed is $311 billion (in 2019). That means that a $9 billion cut is about 3%. Are tuitions increases higher than 3%?

2 - They have a choice. They can cut costs or increase tuition. If the customers (i.e. students) have easy money available to borrow, that decreases the pressure on the school to keep the prices low.