Day: February 1, 2020

Is Federal Financial Aid to Blame for Escalating College Tuition?

The role of nearly unlimited federal financial aid rarely receives any attention in the current debate over the causes of skyrocketing college tuition. Very few students, or their parents, are able to pay tuition costs out of pocket anymore. Many private schools now charge between $30,000-$50,000 a year. Even at a number of state schools tuition and fees now hover around $20,000. Since most college students do not come from families blessed with thousands of dollars in extra cash, most end up having to borrow money. According to the New York Times, the average student loan debt for all borrowers was over $23,000 in 2011. The problem does not appear to be improving either. CNN Money reported in April 2011 that tuition and fees at public universities rose over 8% for the year, as college costs continue to climb well ahead of the average rate of inflation. One has to wonder if students would be burdened with such an incredible amount of debt if the federal government began to place strict limits on the amount …