Friday, January 29, 2010

Fox 5 Reports on Obama's Income-Based Repayment Plan

by Daniel L. Bennett

Fox 5's Melanie Alnwick did a story on Obama's Income Based Repayment Plan yesterday. She asked CCAP for its opinion on the plan. Here's the perspective that CCAP had to offer which was included in the print story:
There is also an interesting argument going on -- that college tuition is experiencing a bubble, much like we saw in housing. The more loans that are available, the more money students have to spend. That, the theory goes, leads colleges to raise tuition and buy for all sorts of things that don't go directly to education.

"It's comparable to rearranging the furniture on the Titanic," says Daniel Bennett of the Center for College Affordability. "It makes it look nicer but it doesn't take care of the problem."

Bennett agrees with President Obama's statement that colleges need to do their part to bring down cost.
Above is the video from the story, which includes sound bites from The CATO Institute's Adam Schaefer, who espoused that:
When you look at wages and benefits compared to the equivalent job in the private sector, they're doing far better with much greater job security

"Not everyone is going to go to college, not everyone is going to gain anything from going to college, and there's no reason we should have a regressive tax on plumbers and tradespeople that didn't go to college to fund other people's education

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