October 23, 2008
Tuition hikes in hard economic times?
According to Michael Dannenburg, that’s what you should be worried about, not the difficulty in getting a loan.
Here’s an excerpt from the USA Today opinion piece:
“More than 100 banks have stopped issuing student loans, but about 2,000 continue to originate federal
student loans. The government maintains two “fail-safe” systems. To date, not a single student has been
unable to get a federal Stafford Loan. Every family, regardless of income and credit history, is able to borrow
at least $57,500.
The real danger during bad economic times is that tuition often skyrockets. Here’s why: A bad economy
depresses state tax revenue. To meet state balanced-budget requirements, states cut funding for higher
education. To make up those cuts, public colleges hike tuition. Competing private colleges see the increases
and feel empowered to increase their tuitions markedly as well.”