College Costs Will Keep Rising Under Obama Plan

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from NCPA,

Colleges’ exploitation of young Americans through rapidly rising and increasingly exorbitant fees is a national scandal that can no longer be ignored. In his recent college tour, President Barack Obama spoke at length about what he intends to do about it, after promising “tough love” on higher education for the last two years, says Richard Vedder, distinguished professor of economics emeritus at Ohio University.

Some of what he proposes is good in principle; some is very bad.

The president’s proposal has one very bad idea: a forgiveness boon for those paying off loans right now. The proposal, limiting loan payments to 10 percent of income, potentially relieves millions of students from repaying part of their obligation. So why not major in fields the economy values least — anthropology or drama instead of engineering or math — if you don’t have to worry about earning enough to pay off your student loans over a certain period?

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