Although the surest ticket out of poverty remains higher education, higher education itself is placing too many Americans back in poverty. In the last 30 years, the cost of a college education has astoundingly almost tripled even after taking account of inflation. Meanwhile the public subsidy to students has remained stagnant. That means, after taking account of inflation, subsidies to students have been cut in half. Do the math. When I went to college, the Government subsidized almost six times as much of college costs. No wonder today's generation is feeling the pain.
And it's not just tuition. Room and board are skyrocketing, as colleges use these items, plus fees, to pad their payments to administrators. And we have to be clear that's where the money is going. Why a college with the same number of students as 30 years ago needs twice the number of administrators to handle them now is beyond me.
To add insult to injury, the Federal Government profits off the backs of students by charging them an additional 3% to 6% more for student loans than we charge banks. That's a hiked rate of interest on an overcharged principal, amounting to an astonishing $21 billion a year the Government makes off of strapped and vulnerable individuals struggling to live the American Dream. Private industry charges even more.