Join 1.1 Million People in Supporting the Student Loan Forgiveness Act
“Student loans are an unintended consequence,” Harlan Platt, author of Unintended Consequences: How To Improve Our Government, Our Businesses and Our Lives. “Government had an idea to fund people to go to college, but when someone else is in charge of your checkbook, someone is going to write a lot of checks. That’s what happened.”
Platt says that once student loans were more manageable, but that changed because universities were focused on their national image. He theorizes that when magazines started ranking schools, universities felt the pressure to spend, and make more money in order to move up the lists.
“A university or college that wants to prosper needs to take actions to improve its national rankings just like a football team would,” he says. Colleges have begun a bidding war for faculty and a building war for dorms, student unions, and athletic centers with two or three pools. All of these institutions are chasing an elusive goal that is rankings and that means more dollars have to be raised.”
In turn, tuition skyrockets.
Two-thirds of American college students graduate with large debt, an average of $24,000. According to the U.S. Department of Education, student loan defaults have doubled in the last five years.