Great article this morning. Brent Arends, writing for Market Watch takes a look at Hillary Clinton’s Tuition Reform Plan. $350 billion dollars over ten years….grants, subsidies…all in the form of guaranteed federal money. Sounds good. But is it? If you take a look at when college lost its collective mind and began dramatically raising tuition/fees, etc. It coincides exactly with the federal guaranteed loan programs kicking in (1970s). Feds give money..college raises the price…EVERY SINGLE TIME. For every $1.00 increase in aid, colleges have raised prices by $0.65! And the colleges have become a cartel….they all raise prices together, at the same time and at the same level. How can that be in a “free” market society.
In 1980 a student would have had to work 260 hours at the federal minimum wage to pay the tuition at good old State U. Today, he/she would have to work 1,260 hours! And that doesn’t count room, board, and living expenses. That’s 31 weeks of full time work…..Good luck with the studies!
Without federal money colleges would be a lot less expensive. Sure, the kids might be missing the water parks, fireplaces in the dorms, fully equipped gyms, coffee bars, and the other insane perks……but they wouldn’t be graduating (for the 60% who actually DO graduate) with and average debt of $35,000….in addition to what they actually paid out.
Without federal money colleges would be less expensive, smaller, less luxurious and maybe even focused on preparing their student for their future, productive lives.
Without federal money….the whole thing would collapse!
It is a scam….and a disgrace.
Wake Up, Hillary. Somebody. Anybody. Instead of continuing our same old same old of throwing money at an obviously sick and corrupt enterprise…..why don’t we launch a federal investigation into price fixing in the college-industrial complex. File an Anti-trust lawsuit against this cartel, which holds a death grip on a bachelors degree……..give our kids some options that don’t cost $100,000+.