There is more than $1 trillion in student loan debt outstanding, and it keeps going higher, as does the cost of college tuition. Are we in the midst of a massive student loan bubble, and can universities continue to provide costly educations that burden graduates with a lifetime of debt? Will the federal government bail out struggling graduates? Find out on this InstaVision as Richard Vedder, author of Going Broke By Degree, talks to Glenn Reynolds.
It’s no secret that U.S. college tuition costs are rising dramatically, and the high cost of a college education burdens young people and their families. How can we make college more affordable?
Many suggest that the best way to keep tuition affordable is by increasing government assistance through student loans, grants and tax credits for education. American University Professor Daniel Lin shows that doing so will actually lead to higher college costs, because loans/grants/tax credits are directly related to the increasing cost of education.
Before we can find any solution, it is important to understand the root cause of the rising prices. Lin finds that increased demand—fueled by improved job prospects for graduates and increased government assistance—is to blame for soaring tuition prices. H/T LearnLiberty
