(Video) Student Debt: the Game of Loans

November 10, 2015

From Prager University, an explanation of how student loans drive up the cost of a college education and drive students further into debt:

My college days, both undergraduate and graduate, we more than 30 years ago, but I can attest how even then student loans were a scam: easy to take out, hell to pay off. I was lucky and able to pay mine off thanks to the dot-com boom of the 90s, but many, many others are still trapped with that burden, if they haven’t blown them off altogether. I can only imagine how the problem has grown worse since then. The system is in desperate need of reform.

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Reduce Out-of-Control College Costs by Ending Government Subsidies

April 5, 2015

Having watched college fees skyrocket over the years while the rolls of overpaid administrators gets ever more padded, Dan is exactly right. Student loans, a subset of subsidies to colleges, are really a racket by which the university charges more and more, the taxpayer (the source of the loan) pays now, the college gets the money, and the student spends decades paying the bill.

International Liberty

I’ve written many times about the shortcomings of government schools at the K-12 level. We spend more on our kids than any other nation, yet our test scores are comparatively dismal.

And one of my points, based on this very sobering chart from one of my Cato colleagues, is that America’s educational performance took a turn in the wrong direction when the federal government became more involved starting about 40-50 years ago.

Well, the same unhappy story exists in the higher-education sector. Simply stated, there’s been an explosion of spending, much of it from Washington, yet the rate of return appears to be negative.

Let’s take a closer look at this issue.

Writing for the New York Times, Professor Paul Campos of the University of Colorado begins his column by giving the conventional-wisdom explanation of why it costs so much to go to college.

Once upon…

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