00:00Colleges have become too expensive.
00:02For that reason, I think some of the criticisms are valid.
00:05Like, for example, I didn't know this,
00:06but 92% of all outstanding student loan debt
00:10is money owed to the government.
00:12It's only 8% that's money owed to private institutions,
00:15which means I can't look at that statistic and say,
00:17well, I guess colleges are charging too much
00:19because of greedy predatory lending from companies
00:22because most of the money is given out by the government.
00:25In fact, the Federal Reserve of New York did a study
00:27where they found that for every $1 in subsidized lending
00:31from the government to colleges,
00:32that colleges increase their prices by 60 cents on the dollar.
00:36And this makes perfect sense
00:37because colleges have realized that what they're creating
00:40is a product that everyone needs to buy to enter society.
00:44But if they can't afford to buy it,
00:46the government is gonna buy it for them anyway.
00:48So of course, they're gonna charge
00:49an insane amount of money for said product.
Comments