Monday, May 14, 2012

Should Ohio Taxpayers assure that Ohio State students assume less debt?

The New York Times had a story yesterday about a "generation hobbled by the soaring cost of college."

The piece featured some disturbing stories--particularly about a student who had $120,000 in debt as the result of attending a college that I had never heard of before.  On the other hand, I also read that, "Three out of five undergraduates at Ohio State take out loans, and the average debt is $24,840."

Ohio State is a world class research university.  I am quite sure that graduates of Ohio State earn much higher lifetime incomes than the average Ohioan.  So higher subsidies to Ohio State students from Ohio taxpayers would effectively be a regressive transfer.  

Should the state subsidize the University?  Almost surely, because its research and its college graduates produce positive externalities.  But does an average debt load of $24,840 keep large numbers of students away from Ohio State?  Enough that it diminishes the positive externalities created by their attendance?  That would be a much tougher argument to make.  My guess is that almost everyone who goes to Ohio State would go to some college, one way or another (just as it is the case that nearly every homeowner who takes the mortgage interest deduction would be a homeowner in its absence).

In order to stimulate upward mobility, there must be financial aid (in the form of grants, not loans) to students coming from low-income households.  But for everyone else, well, it seems like $25K in debt in exchange for an Ohio State education is a very good financial proposition.


Buniyad said...

I like your blog very much. I always read your informative blog post. I want to add some real estate project information with the help of your blog please click hear wave city centre.

davelindhl said...

it will be true.we should be taxpayers.students who were earning money will be must needed to pay the tax.we also have real estate investing information.
dave lindahl

willie green said...
This comment has been removed by the author.
Buniyad said...

I like your blog very much. I always read your informative blog post. I want to add some real estate project information with the help of your blog please click hear jaypee garden city agra.

sumangalam propmart said...

Nice useful info. I loves to read such post that shares something new and knowledgeable with me and you impressed me with this info. thanks for that.

Wave city center | residential property in sector 32 noida

apaertment for sale in istanbul said...

The size of an apartment or house can be istanbul real estate described in
square feet or meters. In the United States, this includes the area of "living space", excluding the garage and
other istanbul property non-living spaces. The "square meters" figure of a
house in Europe may report the total area of istanbul properties the walls
enclosing the home, thus including any attached garage and non-living spaces, which makes it important to inquire what kind of surface
definition has been istanbul real estate used.

It can be described more roughly istanbul real estate
the number of rooms. A studio apartment has a single bedroom with istanbul real estate
no living room (possibly a separate kitchen). A one-bedroom apartment for sale in istanbul
apartment has a living or dining room separate house for sale in istanbul
from the bedroom. Two bedroom, istanbul villa three bedroom, and larger
units are common. (A bedroom is defined as a room with a closet for istanbul villa clothes storage.)

In recent years, property for sale in turkey many
economists have recognized that the lack of property for sale in istanbul
effective real estate property for sale in istanbul
laws can be a significant barrier to investment in many developing countries.
In most societies, land for sale in istanbul rich and
poor, a significant fraction of the total land for sale in turkey
wealth is in the form of land and buildings.