Government Financial Aid has resulted in inflating the cost of tuition. College tuition is not driven by the free market, but by government subsidy. Attempts by the government to help poor people have hurt middle class people who do not qualify for financial aid and who are now stuck paying for the higher prices that have resulted from the government subsidy of education.
In any developed society there is a balance… Government can not help one group of people without hurting some other group of people.
People often wonder why college education is so expensive. Most colleges function very much as private business does. There goal is to bring in as much revenue as possible. When they consider what to charge for tuition, they first consideration how much money government is giving students through financial aid… rather then what is fair or what student can afford on their own. They even consider how much money students will be able to borrow in determining tuition charges.
Colleges base the entire budgets on the anticipated revenues they will be receiving through financial aid programs. They build their facilities and negotiate their teachers contracts based on this. The result is professors that teach only two or three classes a semester at extravagant pays. The classes typically meet only two times a week. The concept of the University was suppose to provide for the efficient education of people interested in higher education. Instead it is now providing education in the most inefficient and expensive manor. If a student were not to receive financial aid and pay for the entire cost of college out of pocket, college would be a very bad investment. This determination is based on the amount of money spent to get a four year degree relative to how much money the student can expect to earn in the next 10 years after that (net of taxes).
The worst of this is cases where students do not qualify for government financial aid. Now those students are burdened with the full cost of a college education that has been inflated by government subsidies to other students. This is a most unfortunate circumstance for most people because they must decide to either not attend college or obtain loans to finance their education. They may very well spend the next 20 years paying off these loans.
I propose an end to all Government financial aid. The vast majority of students will no longer be able to afford a college education. Colleges will either have to close down… or become more affordable. Professors will have to accept lower pay or teach more classes. Education will once again start to be a good investment. A good investment is one in which you get more financial benefit out of, then you put into. To achieve this, government financial aid programs must stop.