Education Affordability Plan Causes Huge Problems

Still more proof that when and where the government gets involved, chaos follows close behind. In this case the intention is clear given that the evidence and history of more government injections of money only causes more increases in fees and tuition for everyone.

So where is the gain for the student? There isn't one and there won't be at any time soon as this plan isn't about helping students afford schooling, it about spreading out the rewards for being good soldiers in the fight for a socialist democracy. Voting for progressives has it's rewards.

Mr. Obama is not stupid and his people know full well that all this money being spent on "affordability" is not about just education for the population, it's also about control of educating the young to know the wonders of a fair and equatable society.

The Scourge of Government "Affordability"
Source: "The Scourge of Government 'Affordability,'" Investor's Business Daily, March 1, 2012.

Every time government tries to make something more "affordable" for consumers, it makes it more unaffordable. Soaring college tuition is just the latest example, says Investor's Business Daily.

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 is pushing college costs up faster than inflation -- faster than even health care costs.

Columbia University looked at federal aid data from 1996 to 2008 and found that, on average, colleges raised tuition $17 in response to every $100 of Pell Grant aid.

A joint study by Harvard and George Washington universities found that for-profit colleges eligible for Title IV aid charged tuition that is 75 percent 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. As part of his "Race to the Top for college affordability" campaign, President Obama announced he is "increasing federal student aid so more students can afford college." This includes expanding Pell Grants.

State colleges that control costs will be rewarded with "additional federal support," the president said, ignoring evidence showing his incentive will work against his goal. He also plans to pour $8 billion into community colleges to help train students for his vaunted "green jobs."