Higher Ed Costs Impose Growing Burden
New Approach Needed to Serve Students Better
(Washington, D.C.) – According to recent research from the National Center for Policy Analysis, one result of the dramatic increase in aid to institutions of higher education has been to inflate the cost of a college degree. Expanding access to student grants and loans – while well intentioned – has given colleges and universities ready access to taxpayer funds, enabling them to spend far more on administration and overhead. With easier access to government funds, total outstanding student loan debt has reached $1 trillion – creating a student loan bubble. Worse, many young people lack the economic opportunities needed to pay back these student loans, or lack the skills to take advantage of millions of open positions currently available in the United States. Evidence also suggests increased student debt is killing entrepreneurship. While the White House has proposed making 2 years of community college free for many students, this would increase the cost of higher education to taxpayers and students, while potentially crowding out other colleges and vocational schools that serve as alternatives for many Hispanics.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“For years families have struggled to cope with the rising cost of a college degree. Elected officials in Washington have enacted policies that they promised would help – increasing federal funds for colleges and universities, and expanding government’s role in student loans. While enacted with the best of intentions, these policies have made it easier for universities to raise tuition and fees – and they have risen.
The result has been predictable: more and more taxpayer money spent on higher education despite large government deficits, and more and more debt piled on the backs of America’s young people. This system is fundamentally flawed. It’s holding back economic growth, and making it harder for young people to pursue their dreams. Washington should look at state experiments with low-cost degree programs, review the stunning growth in university administration budgets, and consider how to take advantage of competition to bring down the cost of colleges and universities.”