"The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary." ~ H.L. Mencken
Making College More Expensive: The Unintended Consequences of Federal Tuition Aid
"As Congress debates the reauthorization of the Higher Education Act, it should heed Friedrich Hayek’s warning that democracy is “peculiarly liable, if not guided by accepted common principles, to produce over-all results that nobody wanted.” One result of the federal government’s student financial aid programs is higher tuition costs at our nation’s colleges and universities. Basic economic theory suggests that the increased demand for higher education generated by HEA will have the effect of increasing tuitions. The empirical evidence is consistent with that—federal loans, Pell grants, and other assistance programs result in higher tuition for students at our nation’s colleges and universities."
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The Government should not be paying for or assisting in higher education. If you want a college degree then you should be willing to work for it, for working to accrue the funds to pay the price of the education adds incentive to do well and now squander away the academic years.
My wife worked at a University and shared a story about one young woman who enrolled only long enough to get the money then quit to party. I don't know what kind of loan, assistance or grant this was but for some reason it was paid directly to her. I know this is not the case in many assistance programs or grants, but it just happened that this one was.