The total amount of student loan debt continues to exceed the $1 trillion. In fact, student loan debt is greater than credit card debt, auto loan debt and other consumer debts. It grows at more than $3,000 per second (SEE: With U.S. student loan debt growing $3,055 per second, grads would sell an organ to pay off debt), and there is no sign of it relenting since the government continues to stick its nose in this area.
As Ron Paul explains in the video below, whenever the government interferes into an area of the economy with freshly printed money from the Federal Reserve, costs go up. Education, stocks and medical care are superb examples of inflation raising the costs of stock prices, tuition and healthcare. Moreover, guaranteed student loans do not give universities an incentive to lower their costs.
The video from a 2012 Republican presidential debate is embedded below:
Let the universities give the loans to the students. They will make sure their graduates can pay it off.
The younger generation has been lied to. A college degree does not automatically guarantee a job paying more than you could get without the degree. A recent report showed that 51 percent of 2014 grads were working jobs that did not require a degree. Just because a college offers a degree in a subject of study, does not mean there are jobs for that graduate.
The government needs to get out of education, health care and housing then prices will be more stable over time.