Correct me if I am wrong... With the modern system, the federal government is backing the loans. So you have a surge of the demand, more students apply for a loan because they are granted easilly. The colleges raise the tuition fees because the students have more money to spend. Similar to the housing bubble or Obamacare. Some teachers are hired, but the number of administrators is multiplied many fold and their salaries shoot up to 200 or 300K instead of 80K. Many colleges complain that the students can't keep up with rising tuition fees so the government is backing more loans and the tuition fees increase again because you have a social pressure on young Americans to get a college degree. The samething happens for technicians, more employers refuse to train a young job seeker because it's much easier to ask them to get a minimum training from any school, after all they can get a loan. In some cases a technical school will give you 2 or 3 years of courses even if 3 months would be largelly enough. In the former system, a private bank could refuse more often a loan if their records show that for some specific professions the chances to get back their money were not so great. This led the colleges/schools to give a better training and be sure that their students would get a job because the banks were more likelly to grant a loan to the news students, which would increase the profits of the colleges/technical schools. But right now if the federal government is backing the loans, the bankster doesn't give a sh... about the job possibilities so you have a collusion where the college can fudge the statistics and claim that you had 500 job offers for 200 graduated students even if 400 of those offers were posted on 55 different college boards and half of those openings were either cancelled or filled by an external source but it is still possible to catch new fishes who will pay the tuition fees. In the old system someone like Ron Paul, who was living on a farm, delivered newspapers and moaned lot of lawns and was able to pay his tuition fees just with that. Today, at the same university, a serious student who wants to give a down payment would need to stay with his parents more than a year and work on a full time basis to pay for half of a semester.
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