The higher education bubble has burst--stop subsidizing failure

Glenn Reynolds of Instapundit has been documenting the higher education bubble--which has burst. Decades of higher-than-the-rate-of-inflation tuition increases at traditional universities and colleges have their legacy: $1 trillion in student loan debt, which exceeds what Americans owe in credit card debt.

Yesterday, President Obama met with some university presidents to discuss controlling education costs. But the Daily Caller says we should expect more of the same:

However, leaks from industry insiders say the president will not try to cut fees by increasing competition. He is also not expected to threaten cuts to federal education subsidies, which have have driven up costs.

Instead, White House officials are expected to promise more federal subsidies for the education industry.

That brings to mind a Ronald Reagan quote, "Government does not solve problems; it subsidizes them."

Reagan banner, Eureka, IL

Absent from the meeting with the president were presidents at for-profit colleges, which the White House has singled out for harsh treatment.

Last week a House subcommittee noted that that tuition has increased more than 8 percent at public not-for-profit four-year and two-year colleges in the last decade, 4.5 percent at private four-year schools, but just 3.2 percent at for-profit colleges.

But Obama's Department of Education wants to put at a disadvantage the for-profits with its burdensome "gainful employment" rule.

Related post:

House subcommittee looking at rising tuition costs; not-for-profit colleges increasing more than for-profits

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