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What the MSM won't report
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<blockquote data-quote="Lue C Fur" data-source="post: 717489" data-attributes="member: 25159"><p>Good article!!! Below are some key points. I still like the old system with Military service...otherwise our govt should stay out of it.</p><p> </p><p><span style="color: blue">When government offers virtually unfettered access to student loans it, artificially increases the threshold of what students can afford. Many would presume this to be a highly desirable outcome and precisely the reason FFA exists. However, this reasoning fails to account for the causal relationship between FFA and prices: tuition rates are not only based on factors such as the costs of delivering education, the industry's competitive landscape, and the economy as a whole, but also on demand, which encompasses the ability of students to pay for the education they consume. In essence, FFA allows for-profit schools to increase their prices significantly above what they would be in a true market. If FFA were eliminated or significantly scaled back, schools would be forced to decrease their prices to the point of market efficiency or face a catastrophic decrease in enrollment industrywide. Only then would students receive a market-based return on investment in their education.</span></p><p><span style="color: blue">Government interference in the marketplace has allowed for-profit schools to realize immense profits at the expense of American taxpayers. By offering virtually unfettered access to FFA, these institutions are able to increase prices significantly beyond true market value to students who pose a high risk for default. Privatized profits and socialized losses are the result of such a system.</span></p></blockquote><p></p>
[QUOTE="Lue C Fur, post: 717489, member: 25159"] Good article!!! Below are some key points. I still like the old system with Military service...otherwise our govt should stay out of it. [COLOR=blue]When government offers virtually unfettered access to student loans it, artificially increases the threshold of what students can afford. Many would presume this to be a highly desirable outcome and precisely the reason FFA exists. However, this reasoning fails to account for the causal relationship between FFA and prices: tuition rates are not only based on factors such as the costs of delivering education, the industry's competitive landscape, and the economy as a whole, but also on demand, which encompasses the ability of students to pay for the education they consume. In essence, FFA allows for-profit schools to increase their prices significantly above what they would be in a true market. If FFA were eliminated or significantly scaled back, schools would be forced to decrease their prices to the point of market efficiency or face a catastrophic decrease in enrollment industrywide. Only then would students receive a market-based return on investment in their education.[/COLOR] [COLOR=blue]Government interference in the marketplace has allowed for-profit schools to realize immense profits at the expense of American taxpayers. By offering virtually unfettered access to FFA, these institutions are able to increase prices significantly beyond true market value to students who pose a high risk for default. Privatized profits and socialized losses are the result of such a system.[/COLOR] [/QUOTE]
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