Tuition Surcharge For Anger and Loss

This thread is the opposite of the standard BBB Fun and Profit Series.

I discovered a ~$500 tuition surcharge on my graduate school bill. I didn't really look that closely at it before, because I knew the general cost of tuition, and have already quit my life, moved, and shifted everything around going to graduate school so I am pretty much locked in at this point. Also the actual bill is never shown directly to me, because my student loans pay it first, and then I get whatever borrowed money is left over. When I do look at the actual bill there's 15 line items for student activity fees and gym fees and such so I never paid too much attention to it.

I just found out that I am paying about $500 per semester for a special tuition surcharge that started last year, to pay for Needs-Based Scholarships. It's a state school, and I guess the state is broke and is now relying on "rich" students with good credit who can borrow more to help subsidize the "poor" students with bad credit. Also interesting to note that the university gets about 50 to 100 basis points of every dollar I borrow in student loans as a processing fee.

I'm thrilled that I am allowed to go $100k in debt at 8% interest for my graduate degree, and then have to borrow another $2k over 2 years to fund an "underprivileged" student going to the same university.

Fortunately for the school, the cost for me to drop out at this point is way more than $2k so I get to suck it up and hope they don't raise the tuition surcharge fee for next year.

I guess I shouldn't complain. This is no different than someone working 2 jobs to pay taxes and fund their neighbor's unemployment or disability check.

Pay your tuition bills deadbeat!

tripleB said:
I just found out that I am paying about $500 per semester for a special tuition surcharge that started last year, to pay for Needs-Based Scholarships. It's a state school, and I guess the state is broke and is now relying on "rich" students with good credit who can borrow more to help subsidize the "poor" students with bad credit. Also interesting to note that the university gets about 50 to 100 basis points of every dollar I borrow in student loans as a processing fee.

I'm thrilled that I am allowed to go $100k in debt at 8% interest for my graduate degree, and then have to borrow another $2k over 2 years to fund an "underprivileged" student going to the same university..

How is this any different than the blind-beating I'm taking here in TX in regard to school property tax? Since I'm in a rich district, the state has decided (in it's wisdom) that my money should go to poor districts. It's simple redistribution of wealth.

100k debt, public school, 8% interest? Sounds like your middle class (or above) parents still claim you on their taxes - and as such you have no "need" for tuition assistance and are not able to get "need based" scholarships.

Seriously though - 100k is a crapload of public school debt unless you're in medschool. 8% interest sounds crappy too.. Isn't there a way to roll that to a federal loan at 3-4% and pay it back based on current salary?

Just tell me that you're not getting a liberal arts degree...

tripleB said: When I do look at the actual bill there's 15 line items for student activity fees and gym fees and such so I never paid too much attention to it.

I could make some sort of snarky comment about how this lack of attention to accounting detail is yet another sign you aren't a good match for an MBA program, but the back-door college fee increases are a pet peeve of mine.

The recession's pressures on state and local governments have yet to peak. So I fear you probably are looking at higher fees for next year. Surprised they haven't been announced already.

maybe one of those subsidized kids will be smarter and better looking than you --- but still stupid enough to be your future GF

then she can help you pay off your career in public service "minimized" student loans

Crazytree said: fascinating.

are you going to address this on your blog?I think he just did.

That's nothing - here in CA, there is a UC policy that requires a full third (33%) of tuition increases go to financial aid offsets. So don't complain about 2% ($2k/$100k)!

My cousin goes to Arizona State University and has the same charge for her each semester. The situation is that when a college increases tuition, it has a lot of hoops to jump in order to get it approved, plus it always receives bad press. However, a "fee" is something that can easily be approved and its an easy way for the school to get paid extra in the backend.

Sorry buddy, but a lot of universities are pimping their students for extra cash. What is worst is that they probably receive gifts from the lenders for them being a "preferred lender" when you do your financial aid.

DTASFAB said: RedCelicaGT said: I'm prepared for the red...Financial aid is far too available to far too many students. What happened to paying for school as you take your classes? I work 40-50 hours a week and go to school. I get better grades than the majority of younger students with no job who live with their parents. A large portion of students live off student loans, and waste their days away playing video games or surfing the net. They feel picked on if they have to work 10 hours a week at their do-nothing work study job. The current generation of college students is pathetic.I think your points are valid for the most part, but you also have to consider the rate at which tuition at most decent colleges has been rising. There are a lot of students who wouldn't be able to afford the outrageous increases in tuition if not for subsidies. I'm not agreeing or disagreeing with you. I'm just pointing out an additional fact.
There is a very valid argument that a large portion of the tuition increases over the past decade (ignoring recent tuition increases due to budget shortfalls) has been due to readily available student loans.

Since TripleB has been responsible for so many threadjackings, I pray he forgives the following:

Similar issues of quality and scale that effect health care in America also apply to Academia. The market forces have simply been so skewed by subsidy and oversupply, that the businesses have every incentive to churn as many corpses as the rooms can hold. By picking your pocket to pay for Paul's seat, they get two customers for the price of one.

It's a good thing they're teaching their business sense. A shame that the people doing so will never enter the classroom.
But if you're feeling bad, you can always look on the supply side.

As far as the Texas property taxes go, I don't see anything wrong with school taxes being equalized over a whole state so that every resident pays an equal property tax rate (per $1000 of assessed valuation) to support all schools.

And Texans get off pretty easily, tax wise, compared to other states--and now they can even deduct their sales taxes from their federal income taxes, which I think is really unfair unless those residents of states with income AND sales taxes can deduct BOTH.

In terms of the graduate school surcharge, I would not be that opposed if students who receive NO financial aid--and that means no loans, too--would have a very small surcharge. I am talking only about those who can pay for graduate school out of current income, savings, or tuition reimbursements from employers or the Military . But anyone who has a loan doesn't have the income to pay a surcharge.

But hey, we know that YOU'LL never donate to the university after you graduate and they have those alumni fundraising campaigns. You can write them back and say, "I gave!!!!!" Hopefully those need-based scholarship students will pick up the slack.

TravelerMSY said: If you're upset about this, then may I welcome you to the Republican Party?Really, what did they do to alleviate overspending during the decade they were in charge and had near total control? Did they reduce college costs? Or the budget deficit? Or the national debt? Just curious. Please inform us if perhaps I missed something here in the last decade.

RedCelicaGT said: DTASFAB said: RedCelicaGT said: I'm prepared for the red...Financial aid is far too available to far too many students. What happened to paying for school as you take your classes? I work 40-50 hours a week and go to school. I get better grades than the majority of younger students with no job who live with their parents. A large portion of students live off student loans, and waste their days away playing video games or surfing the net. They feel picked on if they have to work 10 hours a week at their do-nothing work study job. The current generation of college students is pathetic.I think your points are valid for the most part, but you also have to consider the rate at which tuition at most decent colleges has been rising. There are a lot of students who wouldn't be able to afford the outrageous increases in tuition if not for subsidies. I'm not agreeing or disagreeing with you. I'm just pointing out an additional fact.
There is a very valid argument that a large portion of the tuition increases over the past decade (ignoring recent tuition increases due to budget shortfalls) has been due to readily available student loans.

That and the fact that the administrators have no real incentive to keep costs in line, as it would upset their professors and the labor unions that represent the staff.

TravelerMSY said: If you're upset about this, then may I welcome you to the We Hate Government and All Political Parties Club?

Typo corrected.

tripleB said: This thread is the opposite of the standard BBB Fun and Profit Series.

I discovered a ~$500 tuition surcharge on my graduate school bill. I didn't really look that closely at it before, because I knew the general cost of tuition, and have already quit my life, moved, and shifted everything around going to graduate school so I am pretty much locked in at this point. Also the actual bill is never shown directly to me, because my student loans pay it first, and then I get whatever borrowed money is left over. When I do look at the actual bill there's 15 line items for student activity fees and gym fees and such so I never paid too much attention to it.

I just found out that I am paying about $500 per semester for a special tuition surcharge that started last year, to pay for Needs-Based Scholarships. It's a state school, and I guess the state is broke and is now relying on "rich" students with good credit who can borrow more to help subsidize the "poor" students with bad credit. Also interesting to note that the university gets about 50 to 100 basis points of every dollar I borrow in student loans as a processing fee.

I'm thrilled that I am allowed to go $100k in debt at 8% interest for my graduate degree, and then have to borrow another $2k over 2 years to fund an "underprivileged" student going to the same university. I bet this is a surcharge that professional students are often

Fortunately for the school, the cost for me to drop out at this point is way more than $2k so I get to suck it up and hope they don't raise the tuition surcharge fee for next year.

I guess I shouldn't complain. This is no different than someone working 2 jobs to pay taxes and fund their neighbor's unemployment or disability check.I bet this (above bold and underline, by me) is an opinion of yours and that it cannot be substantiated. I bet this is a surcharge that professional students are often asked to pay because their professors are often paid way more than, say, English professors.

If so, then all I have to say to you is: pay your own way/weight, deadbeat!

katx said: I bet this (above bold and underline, by me) is an opinion of yours and that it cannot be substantiated. I bet this is a surcharge that professional students are often asked to pay because their professors are often paid way more than, say, English professors.

The university specifically states that at least 50% of the surcharge MUST be used for needs-based scholarships.

RightPatriot said: Firstly, why should rich districts in Texas have to pay for poor? Other than, "It's unfair," do you have any principled argument to support your ideology? As for the federal deductibility, that's not unfair at all. Allowing state and local taxes to be deducted is a subsidy from the federal government to the states. Why should states governed responsibly with lower sales and income taxes have to subsidize through federal income taxes the states like New York and California that are governed irresponsibly?

Sorry, but it's absolutely a lie that the the federal government would be "subsidizing" states like NY and CA if they allowed federal deductions for state income and sales taxes. As things stand now, irresponsibly-governed states like NY, CA, and NJ already receive far less from the federal government than their citizens pay out.

Source: http://www.visualeconomics.com/united-states-federal-tax-dollars...

RedCelicaGT said: DTASFAB said: RedCelicaGT said: I'm prepared for the red...Financial aid is far too available to far too many students. What happened to paying for school as you take your classes? I work 40-50 hours a week and go to school. I get better grades than the majority of younger students with no job who live with their parents. A large portion of students live off student loans, and waste their days away playing video games or surfing the net. They feel picked on if they have to work 10 hours a week at their do-nothing work study job. The current generation of college students is pathetic.I think your points are valid for the most part, but you also have to consider the rate at which tuition at most decent colleges has been rising. There are a lot of students who wouldn't be able to afford the outrageous increases in tuition if not for subsidies. I'm not agreeing or disagreeing with you. I'm just pointing out an additional fact.
There is a very valid argument that a large portion of the tuition increases over the past decade (ignoring recent tuition increases due to budget shortfalls) has been due to readily available student loans.
*cough*College bubble!*cough*

tripleB said: katx said: I bet this (above bold and underline, by me) is an opinion of yours and that it cannot be substantiated. I bet this is a surcharge that professional students are often asked to pay because their professors are often paid way more than, say, English professors.

The university specifically states that at least 50% of the surcharge MUST be used for needs-based scholarships.1. Can you provide evidence for this claim?

2. Where do you think the funding for need-based scholarships should come from?

demingy said: If it's anything like our school - the students with need-based financial aid are also charged the fee. Not saying it's right, just pointing out the absurdity.There is an interesting dynamic/dilemma going on here.

When tuition is increased, the normal (almost automatic) objections are:

1. You are increasing our tuition to pay for bloated salaries.
2. But increasing tuition you are making more poor students unable to attend school.

So in a compromise to those objections, schools say we will increase scholarships (need based an otherwise). But now they are criticized for that too.

Arrrrgggghhhh!!!!!! Some people will bitch no matter what.

jcbrooks said: tripleB said: There's no merit-based scholarships for graduate school. Ever. Unless having a certain skin color or genital organs can be considered "merit."

Correction: There's no merit-based scholarships for graduate business school. That stuff is reserved for research-oriented graduate programs like science and engineering.

There are small exceptions. I got a $3k merit scholarship for 3 quarters of my MBA. Drops the quarter price from $5k to $4k.

You are already contradicting yourself there not to mention that several people in this forum have received merit scholarships for their MBAs. Quick search online also shows that many schools offer merit scholarships to MBA students. It might not cover ALL of tuition, but most scholarships are not that large anyways.