The Scourge Of Government ‘Affordability’

March 2, 2012 08:56

Every time government tries to make something more “affordable” for consumers, it makes it more unaffordable. Soaring college tuition is just the latest example. – IBD

From IBD Editorials


After creating housing and medical bubbles in the name of “affordability,” Washington now wants to make college more affordable. How? By subsidizing it even more.

Yet new studies show federal student aid is what’s pushing college costs up faster than inflation — faster than even health care costs.


A joint study by Harvard and George Washington universities found that for-profit colleges eligible for Title IV aid charged tuition that is 75% higher than for-profit schools that don’t take such funding.

In other words, Washington — which spends $140 billion a year on college grants and loans — created the tuition bubble.

Massive subsidies create artificial demand for college. That further distorts prices. Thanks to last year’s Pell program alone, 10 million low-income students enrolled in college.


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