Question by firstname.lastname@example.org: Billionare Peter Thiel bucks traditional culture by arguing getting a college education is the next bubble to?
burst. He goes on to say that a college education is a bad investment in the foreseeable future. After you read the link. Answer this one question. What happened to University endowments that are supposed to maintain the affordability of attending college? Supposedly offsetting a lifelong worthwhile investment because the University has set aside moneys as land grant institution to fulfill its mandate to educate her citizens even in difficult financial straits. Right now people are being talked to about how to repay loan payments, how best to afford college managing loans. There are some Universities whose endowments are growing like gas and oil profits. Please answer for me, what is going on? Here is the link?
Answer by Amaretta
The cost of a college education has increased at a far higher rate than most other expenses, suggesting that colleges and universities are taking advantage of the demand for what they provide. The more selective schools know that affluent parents will pay any price to get their children into the a prestigious university, which allows them to save their endowment funds for promising low-income students. The middle class tends to get squeezed out in the process — they make too much to qualify for financial aid, but have difficulty paying the cost of an expensive private university education. Going massively into debt for a college education is probably not a good idea, because it can take forever to pay off those loans and because there are financial penalties for not repaying students loans. It’s a tough issue, State universities are also feeling the pinch because the states, faced with lost revenue from declining home sales and related taxes, are cutting back on funding for higher education. One solution might be satellite campuses for state universities (which is already done in some states), where certain undergrad programs are offered at commuter locations around the state. The students don’t get “the full college experience,” but they might be able to get an education equivalent to that offered on the residential campus, but with the affordability of commuter schools.
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