Why are college costs increasing so fast? While there are lots of theories, only one researcher has reached out to many middle-class families to directly ask them how much money they’ve spent on college and to get the direct story. Today we talk to her. Caitlin Zaloom joins us on today’s podcast to dig in to the problem with college funding. 529 plans? Saving directly with the state using pre-paid tuition? We’ll tackle LOTS of scenarios and throw out some ways to solve the problem on today’s show.
In our headlines segment, we talk about borrowing money from your 401k plan. Even though you can borrow from it without penalty, just because you can, doesn’t mean you should. We’ll also dig into the chaos that’s been created as some of the biggest brokerage firms in the country swipe fees all the way to ZERO. Is that a good thing?
After a little dose of Doug’s trivia, we’ll wind up the show by throwing out the Haven Life Line to an anonymous caller who calls out Joe and OG….well, maybe not OG. More directly….just Joe.
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Show Notes:
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HoneyBook
Thanks to HoneyBook for supporting Stacking Benjamins. If you run your own business, you’re used to doing it all. But if you’re struggling to get through your to-do list, HoneyBook can help. Go to HoneyBook.com/SB for 50% off your first year.
<6:10> Headlines
- You Can Borrow From Your 401(k) With No Penalty ― But Should You? (Huffington Post)
- Race to zero: Schwab, TD Ameritrade drop commissions on RIA client trades (Financial Planning)
<21:25> Caitlin Zaloom
Caitlin Zaloom is associate professor of social and cultural analysis at New York University. She is a founding editor of Public Books and the author of Out of the Pits: Traders and Technology from Chicago to London. Currently residing in New York City.
Want to get yourself a copy of Caitlin’s book? Order through our Powell’s link and you’ll be helping the show as well!
<44:40> Doug’s Trivia
- Which Norse god was considered also playful, but often cunning and sometimes treacherous?
<55:31> Haven Life Line
Want the guys to answer your question? You can call into the Haven Life Line and get your question answered on-air HERE.
Join us Friday!
When we talk to Sarah Li Cain and hear the 8 Rules to Success from a Co-founder of Netflix!
I enjoyed the discussion with Caitlin Zaloon. I do have to comment that I disagree that the answer to the college degree cost problem is to have more government spending on higher level education. I have come to the conclusion that the current 4 year degree requirement is now outdated and out of synch with what families can afford and what job providers are looking to hire.
Check this article out from the HBR https://hbr.org/2019/10/will-a-bachelors-degree-matter-as-much-for-gen-z
Caitlin struck me as someone embedded and beholden to the status quo paradigm and to ask for more tax payer funding of her profession to be very self serving and lacked an appreciation that a big part of college tuition inflation is that universities have no incentive to be cost efficient to provide a product that the middle class can afford and the workplace finds valuable.
Great read. However, I think you heard some things that she didn’t say. She never said that more taxpayer funding was the answer. One of her answers (the only one I had time to address), was a less punitive version of our income-based repayment plans. While she addresses free college and other ideas, and also says they may work, she also addresses many of the issues these plans pose.
In the Harvard article it states, “Faster and cheaper pathways to good first jobs are poised to supplant slow, expensive bachelor’s degrees (particularly from non-selective colleges and universities) in Gen Z’s affections.” The issue here are the words “are poised.” Reading her book, I don’t think Caitlin disagrees with this. However, currently (not the way we wish it were), there’s too much emphasis on name-brand, high cost colleges and too much downside to choosing an “alternate” education altogether instead of college.