Wednesday, October 05, 2011
Finally, students protest rising tuition costs
Two hundred Northeastern University students held a rally to protest rising tuition rates. But by blaming only banks, they're missing the other culprits: the government and the universities themselves.
The government is too involved in the student-loan business, guaranteeing too many loans and encouraging students to go into debt. The banks are only too willing to oblige, ultimately handling and issuing the loans on the government's behalf. The universities haul in the dough, having no incentive to tighten their belts as long as the student-loan conveyer belt keeps delivering the financial goods. Sound familiar? The similarities to the housing-market bubble are eerie.
Two hundred Northeastern University students held a rally to protest rising tuition rates. But by blaming only banks, they're missing the other culprits: the government and the universities themselves.
The government is too involved in the student-loan business, guaranteeing too many loans and encouraging students to go into debt. The banks are only too willing to oblige, ultimately handling and issuing the loans on the government's behalf. The universities haul in the dough, having no incentive to tighten their belts as long as the student-loan conveyer belt keeps delivering the financial goods. Sound familiar? The similarities to the housing-market bubble are eerie.
