Friday, May 02, 2008

CCAP in INSIDE HIGHER ED

INSIDE HIGHER ED published a piece today that CCAP did on the approaching student loan bubble. The piece, authored by Richard Vedder and Andrew Gillen, on the approaching student loan crisis can be found here.

By drawing analogies to the housing crisis in the news of late, we at CCAP argue that, based on data from the College Board, the Department of Education and other sources, that the rising costs of college have forced more and more students and their families to pay for college by taking out student loans which they are unable to fully repay.

We argue that a real solution may be looking into new and innovative methods of financing rather than just bailing out student borrowers or the loan providers.

1 comment:

Cowboy said...

James Madison's "Republicans" included a new business class, the owners of small and large estates, and even tenant farmers. As far north as New York, workingmen were coming to share Jefferson's view of the Federalists as the party of speculators and property owners, men who cared only for protecting their economic interests.

Like Jefferson, those workers had come to distrust Alexander Hamilton and his financial schemes. To them, creating a national bank seemed aimed at deliverying the country to to it's richest citizens. As president, however, Jefferson had been enough impressed with the bank's success to want to see its charter renewed.

But I wonder, is that what the federal reserve bank does? Does it deliver the country to it's richest citizens, while the rest of the citizens are left to borrow at great expense and sacrifice while lenders line their pockets and the pockets of others - say colleges and universities for example?