Gov’t Help Fueling Student Debt And Health Care Costs

“But if the history of college financial aid (and other government attempts to protect consumers from costs) is any guide, Obama’s plan will likely backfire.

Over the past three decades, financial aid has rocketed up 438% after inflation, says the College Board. That’s largely due to huge hikes in more than a dozen federal grant and loan programs.

“By providing aid and subsidized loans, the government is trying to protect students, but the effect is perverse,” said Jane Shaw, president of the John W. Pope Center for Higher Education Policy in Raleigh, N.C. “They increase demand and enable colleges to hike tuitions virtually without restraint.

An increase in the average student loan of $1 was associated with net tuition that’s 93 cents higher at public schools and 55 cents higher at private schools, according to Andrew Gillen of the Center for College Affordability and Productivity.”
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Diminishing marginal returns are a funny thing. Sometimes, the more you try, the less likely you are to achieve your goal. Sometimes, when you’re aiming down the site, you need to let the muscle memory and dog brain take over.

Dog brain, your instinctual side
It is what leads people to start a business loaning money for college
It is what makes people sign a piece of paper letting them know they can go to college
It is what leads people to move to North Dakota or anywhere there is a job to make ends meet

There are two parts to learning, theory and practice
All the fantasy investments you make can prepare you with rules
But when that first $1,000 gain or loss hits you brain
Dog Brain > Human Brain

Sell Sell Sell, buy more, read an article saying why it is a good investment
What do I do? Where is my exit?
Good thing you thought ahead, have your exit plan written down
Have your stop loss prepared, execute the plan

Muscle memory, let it build and eventually it takes over
Company smashs earnings? Sell
Company exceeds earnings, up more than 15%? Put it on a watch list
World is ending? Time to tap the cash reserves and look for opportunity, AND hope the world doesn’t end

I had a class recently, got a price quote, accepted it
Why? Because I needed the class, it seemed reasonable, and I didn’t want to haggle
How is college different? One commits to early decision, applies to the college THEY WANT
And figure out how to pay for it later

The best and worst question you will ever ask yourself is “what if?”
What if I HAD done this, what if I do this
What if I HAD tried this, what if I try this
What if I had taken three right turns and five lefts

Don’t ask yourself what if regarding the past, it is great for nostalgia and bad for present
Understand why you did what you did and modify your behavior, but don’t try and change the past, you can’t
Every decision you make today is something you might later ask yourself ‘what if’ about
Treat those opportunities as such and make a decision that based on what you know now, you won’t regret

Diminishing returns do NOT apply to learning
Each thing you learn improves your overall understanding
All progress towards ‘learning everything’ is positive
Learning a menial task? A new hobby? LEARNING GOLD.

Someone asked me recently if I was always jumping from hobby to hobby
New activities are a new path but the SAME path of knowledge acquisition,
Trying to understand how things are accomplished
Why some people commit their entire lives to the pursuit of something

Today will be the day that I learn something
Happy Monday.