Eh...from what I can tell, there is a good bit of correlation=/causation with this narrative.This is a big question. The federal govt taking full control of FSA under the Obama admin is what has created the cost of college to go up by 200% since they took it over. And eventually led to student loan cancellation processes. Im not sure how this plays out, but when the Feds are in full control of anything, it always gets exploited, just as the FSA has. I have one starting college next fall and it is a total cluster 17
Yes, college costs have increased since Department of Education took over control of Student Aid. That is absolutely correct. But other things have happened in that time which also impact higher education costs.
Some realities-
- FFEL loans ended, in part, to ensure SLABS wouldnt be the next thing to cause mass chaos in our economy after the low-quality Mortgage Backed Securities disaster of '08.
- Many states have continually underfunded their state university systems since 2008, pushing more costs onto students.
- Analysis has shown loans since '08 have been handed out at lower interest rates than they otherwise would have been handed out(private funds), which has saved countless students and young adults money.
- The actual total cost hasnt increased. Hot take? Well there is data to at least support the argument.
Personally, I think student loans should be capped at a per hour or per class amount. Perhaps some categories of majors would allow for more student loans than other categories of majors, and that would be based on demand or potential career earnings for various majors.
Details aside, the idea would be to cap student aid and force schools to adjust or push students to schools that are more affordable.
There are obvious issues with that proposal too though.
I have one that will start college next year too. Just applied for half her schools last night actually, and the others hopefully will be done on Thursday. I dont know what you feel is 'a total cluster 17'. There are a lot of financial unknowns right now since FAFSA hasnt been released, but assuming that happens in a month as planned, we will fill out the form and schools she applied to will then be able to come up with financial incentive plans.
Again, lots of unknowns, but it hasnt seemed like a cluster 17 yet since there hasnt been anything financial/loan related to have to sort thru.