Student loans to hit 1 trillion this year.

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3,742
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Northern California, USA
Student loans story With the increasing cost of college and university education, the amount for student loans will sky rocket next year. The California University system wants to raise tuition $15,000 a year. From what I see, I can't understand why it costs so much money to go to school. If A professor makes $200,000 a year and teaches 200 students each semester (400 total a year), it would cost each student 500 per class. 4 classes a semester, or eight a year, and it should cost $4000 a year for teachers only. Double that amount to cover building costs, staff, and maintenance, and it should only cost a student $8000 a year. I am going to a public college right now. There are students here who cam from a large University, and they already owe over $100,000 in loans, and they still aren't finished with school. They have to go back to finish their degree. Something is wrong. I think the student loan thing is just another bubble except the loans never go away. It is a bad way (not optimal) to put money back into the economy.
 
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5,153
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MW
On average, a professor will make about $140k/year. Add to that the fringe benefits, such as health insurance, of around 30%, the total compensation comes to around $185k/year. But that's not the whole story. You have important projects like research. You have the buildings that all these activities happen. You have the administrative staff that make all these happen. The costs mount, and they keep going up.
 

JHZR2

Staff member
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New Jersey
Originally Posted By: CivicFan
On average, a professor will make about $140k/year. Add to that the fringe benefits, such as health insurance, of around 30%, the total compensation comes to around $185k/year. But that's not the whole story. You have important projects like research. You have the buildings that all these activities happen. You have the administrative staff that make all these happen. The costs mount, and they keep going up.
Fully burdened rate for a $140k/yr professor will come out to be roughly $300k after G&A and all is considered.
 
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5,153
Location
MW
Originally Posted By: JHZR2
Originally Posted By: CivicFan
On average, a professor will make about $140k/year. Add to that the fringe benefits, such as health insurance, of around 30%, the total compensation comes to around $185k/year. But that's not the whole story. You have important projects like research. You have the buildings that all these activities happen. You have the administrative staff that make all these happen. The costs mount, and they keep going up.
Fully burdened rate for a $140k/yr professor will come out to be roughly $300k after G&A and all is considered.
wink Yes, the G&A rate for the UC campuses is around 52% on top of compensation. Comes to about $300k total cost for one professor. Salary $140,000.00 Benefits $58,800.00 Compensation $198,800.00 G&A (Indirect Costs) $103,376.00 Total $302,176.00
 
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Colorado Springs
It's one of the next bubbles that will likely burst. Banks could care less because they still make money since most student loans (just like mortgage securities) are backed by the federal government. What a scam.
 
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10,611
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Las Vegas NV
Originally Posted By: Drew99GT
It's one of the next bubbles that will likely burst. Banks could care less because they still make money since most student loans (just like mortgage securities) are backed by the federal government. What a scam.
+1 Allows a bunch of money to be dumped into student loans, which increases demand and prices.
 

JOD

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PNW/WA
Originally Posted By: JHZR2
My issue is with sports and other scholarships. All the other people subsidize the few.
You couldn't be more wrong. Most scholarships are privately funded, and big time universities which fund large sports team scholarships through their athletic departments make HUGE profits via these programs. The universities are making a ton of money off these scholarships, into the millions and even 10's of millions of dollars. And this money goes into the universities' general fund. To suggest that these programs are 'subsidized' by the other students is comical. http://businessofcollegesports.com/2011/...argest-profits/
 
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8,576
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Ohio
On top of the high tuition, public universities get a lot of Federal and State funding. It makes primary education seem down right affordable (even though it isn't either). It's just a big bubble and a cash cow with questionable results, a lot of them negative. Not too unlike the healthcare bubble. For starters student loans should be dischargable. That'll teach them.
 
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2,085
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Wisconsin
I am not far away from completing my PhD. I want to be a professor. I will make about $50-55k starting out. Unless (or until) I become and administrator (i.e.: department chair, associate dean, etc.), I'll make at most $80k in today's dollars even after achieving the rank of full professor. I want to know who these "average" professors are that are making $140k.
 

JHZR2

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Originally Posted By: wallyuwl
I am not far away from completing my PhD. I want to be a professor. I will make about $50-55k starting out. Unless (or until) I become and administrator (i.e.: department chair, associate dean, etc.), I'll make at most $80k in today's dollars even after achieving the rank of full professor. I want to know who these "average" professors are that are making $140k.
What field are you working? If its a dime a dozen field, no offense but it may have an effect.
 
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10,008
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Upstate NY
Originally Posted By: mechanicx
On top of the high tuition, public universities get a lot of Federal and State funding. It makes primary education seem down right affordable (even though it isn't either). It's just a big bubble and a cash cow with questionable results, a lot of them negative. Not too unlike the healthcare bubble. For starters student loans should be dischargable. That'll teach them.
The State University of New York system gets maybe 10% of its operating income from NY state government. Grants/research pays another large chunk, then tuition and fees pay the rest. Each campus in the system is competing against each other for students, faculty, and research dollars. They're competing especially for the $$$$$$$$$$$ "faculty" and even bigger research dollars by building fancier facilities and paying ever-higher salaries to the top folks. In this competition, the students get hosed by being forced to pay for a few all-star "professors" who spend all their time researching while the classes are taught by graduate assistants or adjunct professors. They make peanuts while doing the grunt work. Competition = bad for costs in this area.
 
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3,877
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Alberta, Canada
You can't possibly think that colleges and universities are in it for the greater good of mankind do you? Its a very very lucrative business, just like hospitals. If you can get generation after generation to believe that you needed high school to get a job, now a bachelors, now a masters, now a doctorate...you have a perpetual money making making machine... How did society ever survive before this?
 
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2,085
Location
Wisconsin
Originally Posted By: JHZR2
Originally Posted By: wallyuwl
I am not far away from completing my PhD. I want to be a professor. I will make about $50-55k starting out. Unless (or until) I become and administrator (i.e.: department chair, associate dean, etc.), I'll make at most $80k in today's dollars even after achieving the rank of full professor. I want to know who these "average" professors are that are making $140k.
What field are you working? If its a dime a dozen field, no offense but it may have an effect.
Yes, there are differences depending on the discipline, as well as the university. My field is becoming more and more medicine based, though it is still usually in the College of Education within most universities (it is increasingly being moved into Allied Health, though). But even at the universities where the dept. is in Allied Health, "average" (mean or median) salaries are nowhere near $140k even for full professors. Even full professors (nevermind assistant and associate professors, which make up probably 75%+ of "professorships") in the higher paying fields of mathematics, physics, chemistry, and engineering are nowhere near $140k as average salaries. I'd just like to know where the original person who said $140k is getting their information from.
 

Al

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19,277
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Elizabethtown, Pa
Originally Posted By: Tempest
Originally Posted By: Drew99GT
What a scam.
+1 Allows a bunch of money to be dumped into student loans, which increases demand and prices.
Just another Ponzi Scheme. High costs of education fueled by Universities..many State funded with no regard to costs in the Physical Plant and Cost/Pensions of People working there. I would guess that the costs/salaries/Pensions of Profesors are a drop in the Bucket. Its the other 95% of the workers (many State[Government] workers. My own University, PSU, is a Poster Child at how to spend and display Opulence. And strangely enough [not] PSU and its Satellites are in the top 3 in the Nation with respect to costs.
 

JHZR2

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New Jersey
Originally Posted By: JOD
Originally Posted By: JHZR2
My issue is with sports and other scholarships. All the other people subsidize the few.
You couldn't be more wrong. Most scholarships are privately funded, and big time universities which fund large sports team scholarships through their athletic departments make HUGE profits via these programs. The universities are making a ton of money off these scholarships, into the millions and even 10's of millions of dollars. And this money goes into the universities' general fund. To suggest that these programs are 'subsidized' by the other students is comical. http://businessofcollegesports.com/2011/...argest-profits/
You couldnt be more wrong. Great, youre looking at football and basketball. Ever think of title IX? Take USC Football: 48 Univ of Southern California (Football) Rev:$29,080,117 Exp:$20,820,468 Profit:$8,259,649 But what about the "equivalent" budgeted women's sports that hve to be funded to the level of this program? Add an "equivalent" $20M in for that, and sports are in the red. I was in a club sport in college, because it was not allowed to be varsity due to budget. The women's team was varsity, and most all had a full ride (though they werent very good), because it offset the football budget. Look at the costs of the athletic budget, quota/diversity/non-scholarly scholarships, financial aid, out of state subsidization for in state students, etc. and the numbers change from your narrow view.
 

JOD

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3,577
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PNW/WA
Originally Posted By: wallyuwl
I want to know who these "average" professors are that are making $140k.
They aren't. This is simply more inflammatory lies propagated by those who seem to think that secondary education is evil, and that somehow we're going to be more competitive in a global marketplace with a society that is less educated. Good luck with that... The median college professor's salary nationwide is about 60K. Average vary pretty widely depending on geographic location and the field of specialty. There are some professors who are paid incredibly well, and these are generally in the medical field--and they're working physicians who bring in a lot more than they are paid. That's why universities fight for them, and why they're paid so well. Other professors are paid incredibly well because they have large private research grants, which makes them attractive to the university (again, since they're a net gain to the university). Is easy though to just ignore this and talk about how we're wasting money paying these people all of this money.
 
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820
Location
Sacramento CA
I'm not sure everyone needs to go to college anyway. 1. My friend BARELY passed high school, now he manages a small chain of service stations. -Owns his house, owns his boat & car and ZERO debt. 2. Just about everyone I went to college with (except a doctor and lawyer friend of mine) : Paying on a car, paying student loans (usually between $30-150k) rents an apartment. College -Especially the University of phoenix for profit types ARE MONEY MAKING MACHINES -Students: OFTEN little return on that investment. -aka working the same jobs that you could work without a degree. NPR has been doing major in depth coverage of his issue and I encourage people to listen in- As OUR gov't (Left AND + Right) are sinking money into FOR PROFIT schools which are poven to be not so good for the students.
 
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