A Dysfunctional System That Bankrupts A Generation

from ZeroHedge

University budgets have become huge. Administrator salaries, bonuses, benefits, golden parachutes, and pensions have shocked the public when they’re exposed in the media. Programs that have little or nothing to do with education swallow up more and more money. And sure, everybody loves to have well-equipped labs. The beneficial forces of market discipline have been wrung out of the system. Instead, it has become a mechanism for automatic and unstoppable tuition increases, made worse by cutbacks in state funding. The ultimate but innocent and well-meaning enabler: the setup of government guaranteed student loans.

At fault is the system itself. Like our healthcare system, it needs to be restructured and opened up to competition or to effective checks and balances when competition isn’t possible. Solutions won’t be easy, but with $1 trillion in student loans outstanding, there isn’t much room left before it will bankrupt an entire generation (while the healthcare system is on the way to bankrupting the nation).

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