As America’s $1.4 trillion student-loan debt balloons like the 2008 real-estate bubble, here’s a modest proposal: Use multibillion-dollar college endowments to reduce tuition.
Or how about scaling back the billions in federal loan subsidies that artificially inflate college fees?
Or deflate those administration compensation packages and perks?
Or all of the above.
The House Ways and Means Oversight Subcommittee heard last week that tuition costs rose 46% between 2001 and 2012, in inflation-adjusted dollars. Student debt is now the largest non-mortgage debt in the nation.
New York Federal Reserve researcher David Lucca likens the situation to conditions that spawned the late mortgage crisis. Universities sit on piles of cash while their students accumulate ever-growing mounds of debt.
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