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-- forget which college as the best collapses or the pretty its campuses which one has the best deals.
The average cost of public and private schools jumping 92%.
Over ten years a growing number of will look liberal arts colleges are offering bargains to attract students.
With more Charlie -- foundering an executive director of turning point USA joins me Charlie it's always good to see you thanks for coming on the show.
I -- you know I'm looking at these deals and I'm thinking kids still have 26600.
Dollars in debt on average.
You know these these colleges are just trying to get people to take on more debt is -- a good idea -- it did offer one of these deals.
I think it's a good sign that these universities are trying to recognize that they need to attract new students.
But I think it doesn't solve the problem that even if they gave away these degrees right when kids -- -- That does not mean that they'll get employment.
The prices going up but the value was not there for some his liberal arts degrees so -- could give away these degrees for all that matters but the kids will not necessarily find employment because if you -- degree were in.
And eastern medieval history and you'll find employment right now.
-- -- -- Or ever maybe.
Early example of that so last year Nebraska Wesleyan University.
Guaranteeing -- it's if students make a 3.5 GPA have a pretty good GPA and still don't get a job after graduation.
They're gonna get a free year of a fifty year free at school.
I -- sort of blown away by this are they just so desperate they're making these appeals why are they doing it.
I think it's dangerous to call it a free -- -- because somebody has to pay for it right and the taxpayers sometimes the person that does because there's a lot of federal subsidies.
That go into these university especially the federal student loan industry.
So it's dangerous to start calling this a free fifth year because if the students are not succeeding and we give them a -- a free year.
It's the taxpayer that's kept the paper that ads aren't likely to certain individuals so we have to stop.
Anyway -- -- notion of calling a free fifty.
Isn't that what's really spurred spending -- or what -- -- -- wishing growth in this arena I was talking about how tuition growth was on fire at the beginning of this segment.
It's really that federal subsidy the fact that you can always get a loan.
That's allowed this tuition to go up and up and up don't we have to do something about that if we want to control about costs.
-- -- Absolutely and we look historically whenever we subsidize something let's look at housing we try to get more people buy houses it creates a bubble had burst that's what's going -- -- student loans right now it's it's easier to get a college -- the -- to get along divide dishwasher we need to make credit checks I mean more.
-- of -- students to make sure that they can go to college and they're -- -- -- -- on these loans.
If you put some court credit -- and stop subsidizing from the federal centralized authority to stop seeing these students defaulting -- the student loan bubble being created.
I read recently that the federal government is a bigger holder of non revolving debt.
Then the banks.
So Uncle Sam as a lender of last resort here I -- show a couple of these examples of big deal Spring Arbor University.
So -- tuition for 30000 bucks.
For -- students earning 20000 to 37000 dollars after graduation they won't get the loan -- payment assistance.
Boy when you talk about cradle to grave.
Safety nets this is it my friend.
Absolutely you alluded to it earlier it's Uncle Sam is the last resort because Uncle Sam has the printing press that's the only thing left right now that is the supply of money.
Where trillions of dollars in debt were born borrowing 44 cents of every dollar and -- what that we look at how student loans when the last resort is always Uncle Sam we keep on printing money.
To inflate this artificial bubble we're gonna re live 2008 only with student loans we're talking about our students future and our children's.
But children and a -- another forty years were playing around -- it's a very dangerous thing to -- Unbelievable here's Alma College its cost is 40000 dollars.
They give it 2500 dollars -- band -- and that is for off campus study are in turn ships.
The money just keeps flowing all not also offers.
Four -- graduation promised or get free classes so he can't graduate in four years which more and more these kids do not do.
Yet free classes just that you get higher I guess is -- today what we really.
But we really see.
I would you comment on this study that was done in Colorado about the degrees that produce the biggest bang for your buck who gets paid the most and I have to tell you.
These applied science degrees two year degrees to really help people -- talk to me about that our kids setting right things today.
Well I think there's a notion enough public high schools right now that you need a four year degree to be successful much false -- excites me about this study done in Colorado.
That kids are getting is applied science degrees these two years.
Degrees are going to nursing -- Michael and engineering Michael went up in mechanic.
And -- -- the right in the workforce and earning more than if you've got a -- arts degree before university and you don't have that student loan debt.
It's a very economical decision -- think we're certainly see a trend are not study showing.
That less and less kids are gonna start to put on that debt because a lot of people are trying to realize I don't want to pay a second mortgage and that's studying Colorado illustrates.
That -- to -- -- need to your degree can really had a good reciprocating value.
Yeah and if you're an electrician or Europe plumber or you're you know here in business for yourself -- not to nor.
Absolutely the beauty of that Charlie always so good to see -- thanks for stopping by.
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