What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
Giving Compass' Take:
• The Heritage Foundation examines how the increasing costs of college are leading students to borrow more money and take on more debt.
• How can funders help expand types of connections and programs across the U.S. to help students have a career and be debt-free post-college?
From 1987 to 2012, America’s higher education system added more than half a million administrators, doubling the number of administrators relative to the number of faculty.
To pay for these ever-increasing costs, students are borrowing more money and taking on more and more debt.
And with federal loans accounting for much of the $1.5 trillion in outstanding student loan debt and more than a million people defaulting on their loans, taxpayers are picking up much of the tab for this broken system.
So, what’s the solution?
While politicians often suggest throwing more money at the problem, that will only make things worse.
In fact, the surest way to stop the sharp rise in both college tuition and student debt is to get the federal government out of the student loan business.
That cuts off the open spigot of money that has allowed colleges to increase costs virtually without limit.
Restoring private lending will make the loan market more responsible and cause colleges to rein in costs, creating more affordable choices for students.
Read the full article about why college costs are out of control by the team at The Heritage Foundation.