Government-subsidized loans are hurting college students instead of helping them, according to a new LearnLiberty video.
The Institute for Humane Studies’ website Learnliberty.org released a video last week titled “How Do We Break the Cycle of Higher Tuition and More Debt?” that argues government subsidies for higher education are actually to blame for the $1 trillion national student debt.
In the video, college students voice their frustrations about paying back student debt.
“It’s pretty overwhelming to have all this debt, trying to plan for the future in general,” one student said.
According to American University Professor Daniel Lin, government subsidies, created to help college students with high tuition costs, encourage too many people who can’t afford college to seek out higher education. Forty percent of these college students drop out and two-thirds don’t graduate on time, according to Lin.
The economics professor explains that more students attending college only increases the demand for higher education, causing hikes in college tuition. He suggests training in apprenticeship programs in lieu of a college education.
Learn more about why government subsidies boost college tuition costs in the video below.
[youtube http://www.youtube.com/watch?v=o1ivyhCHpGw&w=560&h=315]
