Obama administration wipes out educational alternatives and increases tuition costs
By Hans Bader September 13, 2016
Obama administration wipes out educational alternatives and increases tuition costs
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The federal government happily subsidizes awful state colleges that graduate few if any of their students. That includes Chicago State University, which has just a 12.8% six-year graduation rate. The Obama administration has rewritten federal student loan rules in a way that encourages colleges to raise tuition and effectively subsidizes the worst colleges the most. The Federal Reserve Bank of New York found that each additional dollar in government financial aid results in a tuition hike of about 65 cents. The federal government also subsidizes expensive, low-quality third-tier law schools whose graduates are often unemployed. It does so even though many of their graduates will never pay back their student loans because of their low graduating salaries, and the huge amount of money law students are allowed to borrow from the government.
But while the government is indulgent toward wasteful state colleges, it has a very different, hostile attitude toward for-profit colleges. It will sometimes financially destroy them even without any proof of wrongdoing. The Washington Post editorial board gives the latest example of the Obama administration doing this, its destruction of ITT Technical Institutes:
http://libertyunyielding.com/2016/09/13/obama-administration-wipes-educational-alternatives-increases-tuition-costs/
