InsideAcademiaTV: Neal McCluskey on How Student Loans Drive Up Tuition

Andy Nash of InsideAcademia.tv interviews The Cato Institute’s Neal McCluskey on how our system of student loans pushes the cost of college higher and higher.


In this week’s InsideAcademia.tv episode, Andy Nash speaks with The Cato Institute’s Neal McCluskey about what keeps forcing the college tuition upward.

Neal McCluskey, Associate director of Cato’s Center for Educational Freedom, and author of Feds In The Classroom: How Big Government Corrupts, Cripples, and Compromises American Education, as well as of the recent white paper: How Much Ivory Does This Tower Need? What We Spend on, and Get from, Higher Education – joins us on Inside Academia to explain why federal financial aid has served to distort price signals and thereby skyrocket the cost of college tuition over many years.

Key Take-Aways

  • 1:10  Tuition goes up BECAUSE of Federal Student Aid (1 min, 30 sec)
  • 3:05  Tuition still goes up even when state appropriations are coming in  (1 min, 40 sec)
  • 5:20  Why should the government profit off of students? (2 min)
  • 8:10  A so-called public good?  But at what cost? (2 min, 40 sec)
  • 11:30  Subsidies and the loss of useful price signals (2 min, 20 sec)
  • 14:40  Why not loan forgiveness if the government caused prices to increase? (3 min)
  • 18:20  To the K-12 level: go to college or you’re worthless (3 min, 10 sec)

Comments


  1. Joe

    It isn’t news that student loans insulate students from real costs of tuition the same way that medical insurance insulates people from real cost of medicine. Universal free public education is long overdue in this country. Fewer schools, with tougher standards and no tuition will make sure that the truly deserving students will always have access while and at the same time will finally provide real value to a college degree.


  2. College Loan Interest Rates: Real Change or Spare Change? | The Beacon

    [...] made that federal loans and aid likely fueled this situation instead of squelching it. (See here, here, here, here, and [...]


  3. College Loan Interest Rates: Real Change or Spare Change? | FavStocks

    [...] made that federal loans and aid likely fueled this situation instead of squelching it. (See here, here, here, here, and [...]

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December 15th, 2011

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