Have you ever thought that it’s crazy to spend as much on four years of college as you might on a 30 year home mortgage? If so, you’re not alone.
Via the New York Post–an answer to the question, “Why does college cost so much?”
Former Education Secretary William Bennett sums up a big part of the problem in a new book titled “Is College Worth It?” In it, he and his co-author note that since 1990 the cost of attending a four-year college has risen at four times the rate of inflation. Over that same period, federally supported student loans have skyrocketed, to the point where student-loan debt now exceeds credit-card debt.
These loans, of course, are designed to help young people afford college. Richard Vedder, an economist at Ohio State who runs the Center for College Affordability & Productivity, notes that tuition costs are much like health-care costs — both are rising because third parties pay the bills. In a speech last year at Hillsdale College in Michigan, he noted that all the federal aid and loans flooding the college markets give colleges and universities no incentive to cut costs…
(Image by trustypics / flickr)