Notes on Taxpayer Funded Student Loans, Politics and Cost Disease
President Obama has been called out for falsely claiming college students’ costs would drop when the U.S. government took over all new federal student loans in 2010. Instead public university tuition has soared 55% and private tuition rocketed up 65% in lockstep with federal backing and subsidies. This, as universities sit on endowments that dwarf Wall Street hedge funds. Lawmakers say it’s to pull back their nonprofit taxfree status as universities gouge middle class families, sandbagging students with loan debt in the hundreds of thousands of dollars where they can’t afford to buy homes for their families.
