There is credit to go around!
“There is credit to go around.” And that’s the problem - especially federal credit.
“Colleges are able to raise their prices because it’s not the consumers paying that cost,” said Neal McCluskey, associate director of the Center for Educational Freedom at the libertarian Cato Institute, in a presentation called “Student Aid Explains the Pain.” Average tuition rates have gone up hundreds of dollars every year, he said, but the actual price students pay after grants and loans are subtracted has barely increased in the past decade.
The solution, he said, is to phase out federal student aid, including subsidized loans and grants, to “make colleges reliant on people who are paying with their own money.” Prices would drop as a result, he said, so college would not become a privilege of only the rich.