Obama To Target Tuition Inflation
Career College Central summary:
Annual tuition from a public university would be about $2,000 cheaper now if the price of higher education had kept the same pace as overall inflation over the past decade. That estimate excludes price hikes for room and board in new extravagant dorms schools have built. In a low inflation economy price hikes in higher education have consistently shot up at faster rates, making college more expensive and forcing students to swallow billions of dollars in debt before they enter the workforce.
A college degree unquestionably reduces the odds of joblessness. In July, the unemployment rate for those with a college undergraduate degree was 3.8 percent. For those with only a high school diploma but no college, it was twice as high. But the financial toll of student loans on younger workers slows down the velocity of their paychecks returning dollars to the real economy.
This week, President Obama is scheduled to announce his plans to reduce college costs. Perhaps more accurately is to reduce the pace of tuition inflation. Already, investors in for-profit education firms have been rattled by government rules requiring those education corporations using federal student loans to provide students with meaningful career training instead of empty semester hours. The president has made similar threats to non-profit universities leveraging government-sponsored student loans.
Affordable education attainment on campus is vital to a growing economy. It is as long-term of an investment one can make.
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THE MIAMI HERALD