Why Free college won't solve the student debt crisis

[SirLinksALot]

SOURCE: AMERICAN THINKER

URL: http://www.americanthinker.com/blog/2015/07/free_college_wont_solve_the_student_debt_crisis.html

By Matt Palumbo

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Student debt tops $1.2 trillion.  With all the consequences of mounting student loan debt taken into account, liberal policymakers have generally proposed one of two solutions: heavily subsidizing student loans or forgiving outstanding student loan debt.  There’s a more radical third “solution”: having the government foot the bill for all tuition.  The third option may be too radical even for the American left, though it’s currently championed by Bernie Sanders.  Sanders would like to follow the Scandinavian model in making higher education free of charge to all students.

Regardless of what you think of the government involving itself more in higher education than it already does, some might assume that this would at least take care of the student debt problem.  They would be wrong.



Above is charted average student loan debt in Sweden (where tuition is free) versus the United States.  And while there is obviously a greater amount of student loan debt in the U.S., most would certainly expect a much larger gap when we’re comparing ourselves to a nation where college is free.  In fact, average student loan debt in Sweden in 2013 was the equivalent of $19,000 USD, vs. $24,000 in the U.S.

Students graduating in Germany (before they socialized tuition) and the U.K. actually have lower student loan debt than students in Sweden.  Not only that, but 85% of Swedish students graduate with debt, while only 50% of American students do.  The reason may have something to do with the fact that student loan debt centers more on costs of living while away at college – rent, food, etc. – than with actual tuition itself.

Not only would “free” tuition likely fail to alleviate the problem of student loan debt, but it has its own set of consequences.  In Denmark, another country that offers college free of charge, students are much more likely to pursue the so-called “luxury” degrees over those in STEM fields.  Far from encourage more students to attend college and build human capital, free tuition in the U.S. would likely have the same effect that it has had in Denmark in encouraging students to pursue what they find interesting rather than what will turn into a career.

Matt Palumbo is the author of The Conscience of a Young Conservative and In Defense of Classical Liberalism.

[jmyrlefuller]

The other factor is that most of the exorbitant student loan debts come from private universities. Most proposals for free college center on the community-college and public university levels, where most of the cost-conscious students already go.

Look at Canada, where college costs are a fraction of what they are in the U.S. Then take a look at how many of them are government-run universities: almost all of them, except for a very small selection of religious schools, which cost about the same as their American counterparts.

There's no way the government is going to be able to subsidize the cost of free private college. Those who continue to go to those schools (convincing themselves that the financial aid package will be equivalent, when usually it doesn't even come close) will still rack up huge piles of debt and be in the same boat.

[geronl]

I am sure there are people who would be completely shocked that free stuff doesn't solve problems.

[Oceander]

I am sure there are people who would be completely shocked that free stuff doesn't solve problems.

That's because there's no such thing as free; somebody is paying for it, somewhere.