Today, we have people investing six-figure sums in college educations. 71% of students who graduated in 2012 had a student loan debt, with an average debt of almost $30,000 – a figure that increases every year. Many graduates owe more than $100,000. At the same time, 40% of college graduates have jobs that don’t require college degrees. That’s partly because there simply aren’t enough degree-level jobs to go around. We have more college graduates than the economy needs. It’s a problem of supply and demand.
President Obama has called far more college graduates and more government loans, but the reality is that we need fewer college graduates, need less federal aid, and fewer government loans. Less government funding will mean fewer students will go to college, coming out with high debts and getting only low-paying jobs. It will also mean that students will be forced to think harder about their investment and choose a university with an eye to costs. Colleges will be forced to cut costs by eliminating unnecessary programs and focusing on really educating students.
If higher education costs are ever going to reduce, the government will have to step back and let the market work.
Listen to the radio commentary here: