> The result is young people who come from modest means, are showered with cash, and recieved no financial planning advice.
You can say the same thing, although toned down a bit, about the college loan situation in the United States.
You can say the same thing, although toned down a bit, about the college loan situation in the United States.
Colleges certainly do. There is no market economy in giving out loans but yet there are no price and quality controls on the receiving end of the money.
The lifestyle certainly isn't lavish in the sense that pop star lifestyle is, but taking out many tens of thousands of dollars in an attempt to become a librarian (one friend of mine did just that) is just stupid, financially speaking. Short of having family bail you out or marrying a high income earner, you're a prisoner to loans that's cannot be discharged via bankruptcy.
The problem is, society needs librarians and other "non-STEM" science - we're right now, for example in Germany [1], seeing with the cluelessness of politicians on Russia how utterly ignorant it was to cut funding for Eastern European studies back in 2005. And mind ya that's Europe where "student loans" aren't really a thing because we don't have absurd tuitions because the government pays for universities.
We haven't found a way to incentivize people to take up these studies, and we absolutely need to, otherwise we are going to lose so much knowledge over the next decades. My s/o for example has a brilliant master's degree in art history, but funding for positions that match her experience is scarce to say the least, and covid didn't exactly help. She's currently working for the government to help fight the pandemic, but it's a sad waste of potential how many people like her are simply left behind.
[1] https://www.pnn.de/wissenschaft/slawisten-kaempfen-fuer-ihre...
I am saying that librarian studies is, economically speaking, a luxury good when a librarians pay doesn't cover the interest on the loans it took to get the job- mind you that in the US, most librarian jobs require a master's degree, so you could easily be paying for 7 years of higher education to get it, and that's assuming that there are even any jobs available that require the degree in the first place.
In the 1980s, the State of Alabama was sued by prisoners who claimed their prison cells constituted cruel and unusual punishment. One of the defenses the state used was that the student dorms at Auburn University were not only more bare than the prison cells, and lacking in basic amenities like air condition that the prisoners were demanding, the students had to pay to live there (the state won). Apartment complexes in Auburn and other college towns now are in wars with each other over the most attractive amenity packages for their residents. Because so many students take the largest loan amounts offered instead of just what is needed, a huge industry has popped up to convert that loan money into the type of experiences that appeal to those in their teens and early 20s. The lifestyle experience of the contemporary university student is nothing like those of the era pre-easy money loans (that is, when the government start guaranteeing and later issuing loans directly).
I live in Boulder, and it's really all over the place.
There a lot of kids just scraping by.
But there are also a lot of kids who don't work, but rent >$2k a month apartments and drive Audis and BMWs.
Obviously their parents are funding them, but I'm pretty sure they take out a lot of loans, too.