Some Good Figures on Education Debt and the Salaries Needed to Support It
PoliPundit lays out the facts in the piece “Republicans Pulling to the Left.”
Speaking of prices, Forbes just published an article titled “America’s Most Expensive Colleges” that included this nugget:
Sarah Lawrence College in Yonkers, N.Y., has long held the dubious honor of being one of the nation’s most expensive colleges. This year, it tops the list for the second year in a row, with an all-in price of $58,334 a year, or close to $240,000 for a four-year course of studies if inflation in higher ed continues on its current course.
$240K? A simple spreadsheet calculation shows that $240K at 3% interest for 10 years amounts to $2,317 per month. That’s $27,800 per year. To keep this at a manageable level of 20% of net income, this would require a starting net salary of $139,000, grossed up for 35% taxes, that is a starting gross of $187,650. How many Africana Studies graduates do you think are going to command that princely sum?
Chad:
Actually, that’s OK that they do it. But all colleges like that need to be cash up front. Rich parents want that for their kids? No worries. But people that can’t afford schools like that who want loans need to convince a loan officer that they’ll have the ability to repay.
20 October 2011, 7:34 pm