17 May 2010

Can All Problems Be Blamed On Student Loans?

This article makes the case. The idea is that student loans have enabled colleges to raise tuition rates at a much higher rate than inflation. Students are always behind the curve, and keep accumulating more and more debt to obtain a degree. After graduation, funds that could have been been pumped into the economy are funnelled through big banks into the pockets of wealthy investors.

Via Instapundit: How Student Loans Helped Destroy America

The student loan burden on today´s working population has already destroyed the economy, practically removed any last semblance of freedom in our workplace and just served to fatten the wallets of the bankers, lawyers and corporate suits that now run the country. The virtues that once made America a great nation have been abused by those entrusted with its care, and even $61 billion will not reverse the situation that we now find ourselves in.

The colleges have been increasing the cost of tuition by far more than the increase in the Consumer Price Index for over three decades.

It is not to say that students would not have found themselves in a debt situation after they graduated, but had college tuition fees stayed in line with the Consumer Price Index, you might have been able to slash these figures by 90%.

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