Author Topic: USC Pushed a $115,000 Online Degree. Graduates Got Low Salaries, Huge Debts.  (Read 1514 times)

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Offline eyephone

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I briefly took a glance at the degree.
They are charging $115k for a masters in social work. haha

At a Cal State college tuition fees around $8k a year for that same master program. Sheesh lol
* I dont think the prestigious college name will put you above the top in this field. (What do I know?)

A prestigious college will only open the door for you. If you already hold a job, then it really doesn't matter where you get your Masters degree from, to get a raise.

An article says that person made around $50k something. Also, we are talking about being a social worker. In my humble opinion the $100k plus master degree is the wrong play for this field.

Offline CalBears96

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An article says that person made around $50k something. Also, we are talking about being a social worker. In my humble opinion the $100k plus master degree is the wrong play for this field.

No doubt about it. I got my Masters degree in Electrical Engineering for free since both the companies I worked at while taking classes paid 100% of my tuition.

Offline fatduck

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I think social workers would typically qualify for PSLF though

So even if you take $200k debt, you are just making income based repayment for 10 years and then the balance is forgiven

Offline eyephone

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I think social workers would typically qualify for PSLF though

So even if you take $200k debt, you are just making income based repayment for 10 years and then the balance is forgiven

You must make 120 qualifying monthly payments while working full time for an eligible employer. After submitting an application, the government then forgives the remaining balance on your loans. (10 year of payments )

PSLF is not guaranteed according to different articles/websites.

The percentage of applicants getting approved not high according to article below.
https://www.nerdwallet.com/article/loans/student-loans/public-service-loan-forgiveness

« Last Edit: November 10, 2021, 07:57:30 AM by eyephone »

Offline eyephone

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I think the state school route would be a better option for the social worker.

Offline fatduck

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this issue goes a lot deeper than USC btw.  here's a great article on 2U (the company that contracts with USC for this MSW program) and other similar businesses: https://www.huffpost.com/highline/article/capitalist-takeover-college/


Offline Liar Loan

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I think social workers would typically qualify for PSLF though

So even if you take $200k debt, you are just making income based repayment for 10 years and then the balance is forgiven

Ok, so we as taxpayers foot the bill for this horrible decision to overpay for education.

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Offline fatduck

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I think social workers would typically qualify for PSLF though

So even if you take $200k debt, you are just making income based repayment for 10 years and then the balance is forgiven

Ok, so we as taxpayers foot the bill for this horrible decision to overpay for education.
drop in the bucket.  pslf is good policy overall.  helps retain public employees at lower compensation who would otherwise seek higher paying private employment.

but even if you consider forgiveness programs to be a true writeoff and ignore other positive externalities, federal student loans are still profitable for the government overall.

trying to micromanage all this stuff is just not worth it.  welfare queen hysteria all over again.  just set up the best incentives you can and let the dice roll.  milton friedman knew this.  modern conservatives don't seem to get it.

Offline Liar Loan

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I think social workers would typically qualify for PSLF though

So even if you take $200k debt, you are just making income based repayment for 10 years and then the balance is forgiven

Ok, so we as taxpayers foot the bill for this horrible decision to overpay for education.
drop in the bucket.  pslf is good policy overall.  helps retain public employees at lower compensation who would otherwise seek higher paying private employment.

but even if you consider forgiveness programs to be a true writeoff and ignore other positive externalities, federal student loans are still profitable for the government overall.

trying to micromanage all this stuff is just not worth it.  welfare queen hysteria all over again.  just set up the best incentives you can and let the dice roll.  milton friedman knew this.  modern conservatives don't seem to get it.

Federal student loans are not profitable once you account for future defaults.  A private lender would be required to set aside loss reserves (in effect taking the loss now to account for future defaults), but the government doesn't have to do this.  They only look at current cashflows when declaring profitability, while ignoring all the bad debt on their books that won't be written off until a future date.

Not only that, but the government notoriously underestimates the rate of future defaults to begin with (meaning the losses are always worse than they project) and there's no incentive to tighten up underwriting to reduce it because taxpayers are ultimately the ones on the hook.

Offline fatduck

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I think social workers would typically qualify for PSLF though

So even if you take $200k debt, you are just making income based repayment for 10 years and then the balance is forgiven

Ok, so we as taxpayers foot the bill for this horrible decision to overpay for education.
drop in the bucket.  pslf is good policy overall.  helps retain public employees at lower compensation who would otherwise seek higher paying private employment.

but even if you consider forgiveness programs to be a true writeoff and ignore other positive externalities, federal student loans are still profitable for the government overall.

trying to micromanage all this stuff is just not worth it.  welfare queen hysteria all over again.  just set up the best incentives you can and let the dice roll.  milton friedman knew this.  modern conservatives don't seem to get it.

Federal student loans are not profitable once you account for future defaults.  A private lender would be required to set aside loss reserves (in effect taking the loss now to account for future defaults), but the government doesn't have to do this.  They only look at current cashflows when declaring profitability, while ignoring all the bad debt on their books that won't be written off until a future date.

Not only that, but the government notoriously underestimates the rate of future defaults to begin with (meaning the losses are always worse than they project) and there's no incentive to tighten up underwriting to reduce it because taxpayers are ultimately the ones on the hook.
they would not be profitable if they were being offered by a private lender, sure.  but they aren't.  the government doesn't have to set aside loss reserves because the government can print money.  they don't have to write off bad debt either.  they can garnish your income for 30 years through the IRS, and then when they "write off" the loan it's considered taxable income and they take a cut of that too.  no private lender could do that.

student loan defaults are not that costly to the government because the debt is very difficult to discharge in bankruptcy and you can't escape collections unless you just stop filing tax returns.

Offline eyephone

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I think the degree they are offering is questionable at that  $100k price.

Offline fatduck

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I think the degree they are offering is questionable at that  $100k price.
most degrees offer little substantive value beyond signaling.  you're buying USC brand name that's it.  i think it's a short sighted play by USC though.  though they aren't the only school doing this.  diluting their brand name for some easy cash.

that's true even of the lionized STEM degrees.  i have EECS and law degrees.  the main value of both was opening doors.  99% of education is on the job.

 

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