Posted by Jason Bedrick
In 2008, then-Senator Barack Obama pledged to make college more affordable. President Obama kept his promises to increase grants and expand loan forgiveness, but the cost of attending college continues to rise. As the College Board Advocacy & Policy Center reports today, tuition at public universities rose 4.8% this year. While tuition didn’t grow as fast as in previous years, tuition continues to rise faster than inflation and growth in family income. And, as we know, student debt is exploding. Graduates of the class of 2011 carry an average of $26,600 in student loan debt, up 5% from the class of 2010. Nationwide debt from student loans exceeded $1 trillion this year, surpassing all other forms of debt that Americans carry, including credit card debt and auto loans.
The Obama administration’s plan to make college more affordable has involved a massive increase in taxpayer subsidies to students. Even after adjusting for inflation, federal subsidies to higher education have more than doubled in the last decade to over $49 billion in 2011-12. The largest increase occurred in 2009-10 when the federal government’s share of tuition aid dramatically increased from 33% to 44%, with federal spending growing 167% from $26 billion to $44 billion. To Read More…..