is EXACTLY WHY the affordability of higher education is escaping the
middle class. The more Uncle Sam hikes the loan limits, the more
colleges raise their tuition. There is absolutely no incentive for
higher educational institutions to control their costs nor to hold the
line on their tuition rates, much like the medical industry had no
incentive to control their costs because insurance rates and payouts
kept on increasing.
This is a vicious cycle. Colleges raise
tuition, feds raise amounts for student loans, young people go into
higher and higher levels of debt that they won't be able to pay, on
loans in which there is no forgiveness or even a chance of filing for
bankruptcy, resulting in near lifetimes of indentured servitude to the
This cannot, of course, be sustained. Fewer and fewer
middle class people will be able to afford to take out the loans
necessary to go to college, leaving college as a luxury to be afforded
by the very rich, or as a handout to the poor who are more likely to
qualify for grants.
This, along with confiscatory taxation on
otherwise upwardly mobile small business entrepreneurs, will only serve
to widen the gap between the trust fund rich and the middle class, and
eventually will squeeze out the middle class entirely.