Meanwhile, a new financial bubble has been creeping up, with President Obama calling the high cost of college tuition and student loan debt "a crisis." What most probably don't see is that Washington's efforts to socialize education have done to tuition costs what they did to housing prices.
By subsidizing and enlarging government-guaranteed student loans, colleges ignored costs and raised tuition prices well above the (also government-induced)inflation rate.
The problem now is that, under the Obama economy, students can't find jobs to let them pay back their loans after graduating. Forbes recently reported that "more than half of student loans are in deferral or delinquent." Increasing defaults in the $1 trillion of student loans may well trigger the next financial crisis and bailout.
Too Much Government, Not Too Little, Is What Caused The Great Recession - Investors.com
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