College tuitions soared each year since 1986 by 498.31%, advancing far in excess of the inflation rate, which increased by only 115.06%, during the same time period.
Liberal Democrat social engineering, beginning in Clinton era, is responsible for our unemployment and trillion dollar student loan crisis.
The U.S. Department of Education-managed student loan program is another financial “meltdown” waiting to happen, which is nearly equal in size to the “Sub-Prime” mortgage loan program meltdown–both of which were initiatives from the Democrat-dominated first term of the Clinton Administration.
The amount of student loan debt held by Americans in June 2010, exceeded the amount of credit card debt held by Americans–at least $830 billion, of which approximately 80% was federal student loan debt and 20% was private student loan debt. In October 2011, the total amount of money owed in student loan debt was said to exceed a staggering $ 1 trillion.
There are two additional correlated issues that are exacerbating our economic recovery and driving up the student debt load.
1) A Flood of Government Student Loan Money
Gordon H. Wadsworth captures the essence of the problem in his brilliant InflationData.com article from October 19, 2011, appropriately titled, “Skyrocketing College Costs,” wherein he identifies the sharp upswing as beginning with the inception of the Federal Stafford Loan program more than a decade ago.
“When Uncle Sam opened the floodgates to [another form of wealth re-distribution] government-backed student loans without parent income restrictions in 1992, colleges welcomed the news with open arms. The sudden injection of millions of additional aid dollars only furthered tuition increases. Add to that the government’s continued promotion of the Stafford Loan as a low-cost program, and you have the formula for hyperinflationary costs.”
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