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nobody forces people to buy private pensions either... not private health insurance.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Fri Feb 12th, 2010 at 10:19:23 AM EST
[ Parent ]
UCLA is not a private university.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 10:28:19 AM EST
[ Parent ]
Well, when it comes to those there is no option. The USA has no public health care or insurance system for those who aren't poor or elderly.

But it still finances higher education. As I said, each student is financed in New York State with a $15,000 subsidy, and the poor and middle class students receive an additional $5,500 in Pell Grant, subsidized student loan at low rates (between 2 and 3%), a loan that is forgiven after 10 years if you work in low paying jobs, and it's a loan with reduced payouts based on your income. Not to mention the grants-in-aid and scholarships for the best students.

As part of the system, I'm a big booster. Obviously.

by Upstate NY on Fri Feb 12th, 2010 at 10:36:00 AM EST
[ Parent ]
I would add that Izzy's figures show that about 10% graduate with onerous loans, which probably corresponds to the kids going to private schools and taking on huge loan burdens. I do not consider $20,000 to be an onerous debt load, and that figure probably corresponds well to the indebtedness of Swedish students after the completion of their studies.
by Upstate NY on Fri Feb 12th, 2010 at 10:39:40 AM EST
[ Parent ]
Upstate NY:
I do not consider $20,000 to be an onerous debt load, and that figure probably corresponds well to the indebtedness of Swedish students after the completion of their studies.

That it does. Though with todays weak dollar it might be a bit low.

And just to clarify, the education is free, but living is not. Swedish student loans are for living. They are on pretty generous terms, you do not have to pay anything back as long as you study and after that you can lower your annual payment to 5% of your income (7% after the age of 50), so they are a bit like an extra tax.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Sat Feb 13th, 2010 at 11:51:37 AM EST
[ Parent ]
Right. Acknowledged. It's the same thing in the states though. The total bill and the debt accounts for living expenses and student fees  (book etc.)

This is why I wrote about Pell Grants of $5,500 covering more than actual tuition at American state schools. Then the student loan and work study cover living expenses and student incidentals.

Net result is that you receive an education valued at $80,000. You don't pay anything for it. The Pell Grant takes care of $20,000 of that education (assuming graduation in 4 years), and the taxpayers pick up the remaining $60,000. Then, you also earned $40,000 (4 years of part-time and summer work) and took out a loan of $20,000 ($5,000 a year) for a total of $60,000 on which to live. $15,000 a year for food, housing, books, etc.

People always mention that you would be working full-time and earning more if you didn't go to school, but what isn't mentioned is that in the USA, jobs that do not require college degrees pay on average $15,000 less a year ($49,000 for college grads and $34,000 for non-college grads).

by Upstate NY on Sat Feb 13th, 2010 at 02:34:46 PM EST
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