The Rising Cost of College Education
The rising levels of borrowing for college education may ironically be contributing to the accelerating cost of college. Student loans can give colleges an artificial sense of a family’s ability to pay for tuition. To some extent, that false sense of security gets built into the various assumptions schools make when setting the prices for their course and tuition. The idea is that as prices rise, families borrow more and more, spurring prices to rise further, which in turn requires more borrowing. It is easier to raise prices of education fee because this additional loan amount is made available by borrowing. This issue has made the issue of how to get out of student loan debt is complex problem.
