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Every dollar of college grant money raises tuitions by 35 cents

To The Daily Sun,

Professors, academics and Democrats never stop screaming for more billions in aid for education from the federal government and the states. The money, they say, will make education cost less. That well oiled, liberal illusion, has finally been uncovered with some facts and data. Let's be clear, this is not information from Fox News. These findings come directly from the Federal Reserve Bank Of New York in a recently released report.

Loan originations (requests to borrow money for college) have more than doubled since 2001— to $120 billion in 2012. The banks research was quite specific. It wanted to know if the broad expansion of federal aid programs fueled the explosion in education and tuition hikes in past years. There has always been heated debate about that question dating back to 1987 when then education secretary, William Bennett, said that all more aid did was "enable colleges and universities to blithely raise their tuitions, confident federal loans would cushion the increases." The Fed researchers studied the period between 2006 and 2008 when per pupil aid limits were bumped up. Sure enough, students took out billions more in new loans.

Richard Vedder saw this trend 10 years ago, estimating then every dollar of grant aid raised tuitions 35 cents. The New York Federal Reserve Bank study reveals for every new dollar in aid schools receive from direct subsided loans raises tuitions 65 cents. For every dollar in Pell Grant money, it raises tuition 55 cents. The endless billions in federal aid (forgetting the hundreds of millions in state aid) has served only as a slush fund to increase tuition fees well above inflation every year for the past quarter century.

Students now leave college with debilitating debt averaging close to $30,000, while student loan defaults skyrocket nationwide. Worse, taxpayers are on the hook for 90 percent of every dollar of loan money. Student debt today exceeds $1.2 trillion. A massive sum of money sure to dilute the living standards for tens of millions of main street Americans for decades to come.

Nothing has harmed students more than the politically motivated freight train of federal and state aid money allegedly intended to help students finance an education. Hundreds of billions in aid has actually increased student debt, not reduced it. The sad truth is federal and state aid to education has been nothing but a wealth transfer from taxpayers to colleges and universities across the country.

The only way to make a college education cost less is to make college much more efficient while improving quality that currently lags many of our primary global competitors. That means putting out a far better product, at far less cost. There is no escaping what is blatantly obvious to every one except those employed by colleges. Reforms are not optional, they are mandatory. College tuitions will not fall until far less labor content and administrative content are inculcated into every college graduate.

The solution to lower tuitions is not rocket science in any way. In fact, the correct path is quite clear. Colleges simply have to become far more productive — like so many other professions and business endeavors have become. Thus far colleges and universities have refused every demand to become so. The unions that run colleges are simply opposed outright to higher efficiency, because it almost surely means less manpower which reduces labor content per graduate. That's how we get the costs down.

The debate is not about the correctness of the solution, the debate is over its popularity. With unions, and even administrators that is zero, no matter that position is bankrupting our children with $1.2 trillion in debt.

If the middle class is really the first concern of the Democratic Party, then why does it keep supporting the continual demands of unionized professors for never-ending wage increases, benefit hikes, and in many cases less work output that has underpinned the doubling of college costs over the past 15 years? The answer is, Democrats only care for the middle class after the union employees who support them like blind mice, have gorged taxpayers and tuition payers to their fill.

Tony Boutin

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Actions of anonymous rescuers changed our lives for the better

To The Daily Sun,

I would like to take a moment to express deepest gratitude to the anonymous men and women who assisted in the rescue of our son and his two friends from their capsized canoe on Lake Opechee on the evening of Tuesday, July 21.

These extraordinarily lucky young men now have the rest of their lives to look forward to simply due to their rescuers generosity and care for other human beings. The outcome of the other evening could have been so much worse.

We have made sure our young adults have learned from their mistake and, rest assured, they will take safety more seriously. We only hope they have the opportunity to assist someone else in the future in the same way you, anonymous rescuers, have done for them. Your actions have truly changed our lives for the better.

Carrie Chapman


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