Student Loan Crisis
We have a crisis on our hands.
The Student Loan Crisis:
Government subsidies through student loans and grants have artificially inflated the cost of tuition in American higher education. Similar to the housing bubble that was fueled by cheap and easy-to-obtain credit, student loans increase demand for degrees and inflate the price. Unlike the housing bubble however, student debt doesn't go away once you file for bankruptcy.
Are Student Loans the Next Housing Bubble? by EconomicFreedom.org:
Related Freeman Articles
JUNE 25, 2014 by LAWRENCE W. REED
The President's plan to further subsidize college just repeats the mistakes of the housing bust--but what matters is that it will buy him votes.
Artificially low interest rates wreak havoc again.
MAY 17, 2012 by STEVEN HORWITZ
Thus just as inflation induces people to invest too much in longer term production processes at the expense of consumer goods, so subsidizing of college induces people to invest too much in the longer term production process and higher order human capital associated with higher education.