Viewing a single comment thread. View all comments

Alert-Ad687 t1_j6ywu5b wrote

Reply to comment by JustADudeBeingADood in CT residents would see billions in medical debt erased under Lamont plan: 'It's the right thing to do' by savings2015

Not really. For college, student loans and aid pay for tuition and fees at a $1:$1 ratio. There’s no discount.

This is “forcing” hospitals to negotiate perhaps $2 Billion in debt down to $20 Million. It’s a bargain.

3

AtomWorker t1_j6z5jl5 wrote

I'm not sure what you mean. Tuition is massively overpriced because you're paying for schools to squander money on fancy new buildings and frivolous athletic programs. Even finance companies don't build such lavishly furnished facilities as your average university.

Personally, I think college sports should be decoupled from universities. Go with a European model where soccer academies are backed by pro teams instead of schools.

12

Guy_Buttersnaps t1_j703wss wrote

> Tuition is massively overpriced because you’re paying for schools to squander money on fancy new buildings and frivolous athletic programs.

That doesn’t have much to do with it.

Tuition is inflated because of the government’s half-assed involvement - they use their power to make sure that pretty much everyone can get loans for education, and they underwrite those loans, but they don’t use their power to actually invest in education or to implement any sort of price control.

Imagine you have something for sale. You know that everyone wants / needs what you’re offering. You also know that it’s pretty much guaranteed that everyone will be able to finance what you’re offering, and you know that money is guaranteed and that whatever happens after will have no impact on your bottom line. You’ll charge whatever the hell you want.

6

hamhead t1_j72upvj wrote

The problem is that fixing this basically requires that everyone *not* be able to get loans... which is "unfair"

1

ImpossibleParfait t1_j6zae4m wrote

This is kind of a good idea, but 99% of college athletes don't go pro and most of them only play sports because of the scholarships. This wouldn't be a good idea in America unless college became affordable. It's a cart before the horse situation. In the US more people play sports in college to pay for college then they do with an intention of going pro.

College has become so expensive because goverment guaranteed loans allows colleges to charge more.

4

AtomWorker t1_j721rww wrote

I get what you're saying, but schools have full control over the cost of tuition. Athletic programs and associated scholarships are part of massive marketing strategies to entice prospective students. They're not doing it because they're trying to alleviate financial burdens; it's all about revenue.

Plus, it's the upper middle class who most consistently take advantage of those scholarships. They're the only ones who can consistently afford the youth programs that typically unlock those opportunities.

Everyone seems to overlook the fact that corporate and political leaders serve on the boards of all these schools. It results in universities being corporate America's wet dream. Massive tax breaks and significant financial backing by the government.

1

Alert-Ad687 t1_j6zcqjp wrote

What I mean is with Lamont’s proposal, hospitals/collectors would be giving a 90% discount on debts owed. $20 Million to pay off $2 Billion.

With student loans and financial aid, the college isn’t giving a discount.

3

JustADudeBeingADood t1_j6yypsw wrote

I'm not saying there is a discount (well, there are with grants like Pell). I'm saying the government offers loans to 18 year olds that no private bank will offer outside of our current financial aid system. It has created a student loan crisis so bad the government is now forgiving loans...effectively creating a discount.

Because any 18 year old can and will sign up for any amount of government backed loans for college, colleges simply inflate their prices because they have no shortage of customers.

5

jon_hendry t1_j6z0gcq wrote

The hospitals have already sold off the debt to bill collectors.

3

Alert-Ad687 t1_j6zchjz wrote

What do you mean there is a discount with Pell? If the student brings $5k in Pell Grants to the university, their student account is credited $5k and not a penny more.

Yes, student loans have probably caused tuition inflation. But the government wiping out medical debt at a 90% discount is definitely…a discount. Not really a good comparison.

1

[deleted] t1_j6zecud wrote

[deleted]

1

Alert-Ad687 t1_j70nk41 wrote

Ehh, not sure that’s been the case. Most federal student loans for the past 10+ years have been Federal Direct loans, not funded by a private bank.

1