The cost of a college education
Yesterday on the PBS newshour, there was a segment on the increasing cost of a college education and the subsequent increase in the number and amount of loans. They then had a discussion between some guys from the Cato Institute (Libertarian/Conservative) and the American Council on Education, representing universities.
The Conservative guy figured the way to drive down costs was to get the gvt out of giving student loans and limit Pell grants, on the theory that if there is less money available, the schools will be forced to lower prices.
The other guy argued strongly that schools don't care where the money comes from and that the main reason that tuition and costs are rising is because the states are no longer funding the state schools at the levels they have in the past, in fact continuing to cut. So the schools bump up the tuition.
Thats certainly the case here in Colorado.
Romney apparently started off with the idea of restricting Pell Grants and loans as a way to drive down costs, but then changed his mind and said in the debate that he had no intention of going after Pell Grants, so nobody really knows where he stands. The two commentators put this more politely. The Ryan budget does limit them.
Obama's move to take the gvt guaranteed money and loans away from the private banks and make the loans directly from the Gvt allowed some 6 billion more to go into loans and not private profits, a move I applaud.
This issue is about state universities and a traditional education, not the for-profit colleges where I see a massive abuse / ripoff and nearly all the loan defaults occur.
Anyway, I thought it interesting the two radically different concepts. Talk about a choice this election
Transcript/video of the PBS newshour segment at the link
Here is a link that might be useful: linky