Outcast_Searcher wrote:marmico wrote:Consumer credit relative to after tax income is at record highs due to student loans.
And yet, look how little that ratio has changed since '2000. With all the yelling, crying, you'd think it was a catastrophe.
While I was still working, I used to wonder how it was that in my top 100 city, with the largest state university (a "college town"), so many college students are driving around in nice cars, eating at nice restaurants (the nicest ones I went to - earning an upper middle class salary), living in nice apartments, wearing fancy clothes, etc.
I knew mommy and daddy were paying for part of that. And that jobs would pay for a little of that.
But it turns out that good old student loans can be had for MUCH more than college expenses. So many students live it up while in college -- and then claim it's a catastrophe and that taxpayers should fund that later -- when it gets inconvenient to pay it off.
https://www.forbes.com/sites/stephendas ... 887df20caf
When I went to college from '77 to '81, I lived like a poor man, because I WAS a poor man. And that was perfectly normal and fine. (There were "rich" kids on campus funded by rich parents who liked to show off, but that was the exception, not the rule.)
Part of the trend in taking on debt isn't so much a sign the economy is "in trouble" -- it's a long term trend toward fiscal irresponsibility. To me, that's a character flaw. Like, say, knowing AGW is destroying the world, but collectively, we aren't willing to do much (if anything) MEANINGFUL about it is a character flaw.
I think you nailed it. I also had a frugal existence while at university. I then started a career at the same university I graduated from so I have seen how the university has changed over the years. To attract students it appears that you must have an attractive campus so all the newer buildings are much more visually appealing (and less functional) than the original buildings built in the late 50's, 60's. Of course many of those older buildings have been renovated to match the new theme. The newer residence buildings are much more luxurious than the original residence buildings. The Residence dining hall serves a much greater variety and higher quality food. A lot more food facilities are located around campus, especially coffee shops, and there always seems to be a lot of students lined up. It really doesn't make sense to me considering that most students are not going to be earning a lot of money immediately after they graduate and will likely be living in an apartment that has seen better days.