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+--- Thread: Student debt now exceeds $1 Trillion (/Thread-Student-debt-now-exceeds-1-Trillion)
Student debt now exceeds $1 Trillion - dcan - 03-23-2012
Well we've seen this one coming for a while.
Student loan debts tops $1T; Rising college costs*combine with fewer grants to cause more borrowing** - NY Daily News
This one really gets me going:
Quote:âItâs the failure of state and federally subsidized grants to keep pace with the rising cost of higher education,â said Mark Kantrowitz, financial aid expert and founder of FinAid.com.
So a "financial aid expert" (and a completely unbiased one, at that) calls for more subsidies, completely ignoring the fact that by and large education subsidies drive up the cost of education because schools know they have a steady supply of guaranteed income and have no incentive to compete for scarce dollars. That combined with the recent 90/10 rule creates a bizarre regulatory pressure on schools to keep raising tuition, which makes government give more subsidies, which raises tuition again, ad infinitum. banghead
Student debt now exceeds $1 Trillion - ryoder - 03-23-2012
I agree. Its like they need to take economics 101. Subsidies increase prices.
Also minimum wage laws (price floors) create unemployment (labor surplus).