I’ve maintained for a long time that part of the reason college costs are increasing well above the inflation rate is government subsidies. Colleges find out how much the government is willing to give out in loans, etc., and raise fees accordingly.
Now, even Vice President Joe Biden admits that’s the case, though he won’t go so far as to say that’s a bad thing.
“By the way, government subsidies have impacted upon rising tuition costs. It’s a conundrum here,” Biden said to a student who asked about the government’s intervention in the free market system.
Read the full text of the conversation between Biden and a Florida State University Student here.