EduBubble has a nice post, including this gem:
These grants and tax breaks are just hidden college loans taken out by society.And his conclusion is dead on:
I would be a bigger supporter of the education if it weren’t so terribly wasteful. Most students use little of their education when they graduate. While I’m a big believer in learning for the sake of learning, I don’t think we should be saddling ourselves with tons of debt to indulge our curiousity. Let people be curious as a hobby. Don’t run up tens if not hundreds of thousands of dollars in debt just to build a talent for comparative literature.Paul Kedrosky hopes that the inevitable slowdown in the college cost explosion is upon us.
Part of the problem is, of course, cheap credit. The ready availability of state support, whether through state schools, bond issues, or student loan programs has made it easier for tuition costs to rise rapidly over the last twenty years, as cost ascend merrily to match governmental credit-fuelled munificence...To the extent that its costs are predicated on income from loan-fuelled students, and its operations requires further cheap credit, that will steadily (and in some cases speedily) change in the coming years