Krauthammer On Student Loan Rate Increases: "The Unintended Consequences Of Compassion"
CHARLES KRAUTHAMMER: It's a classic example of the unintended consequences of compassion. It's a good idea until you realize you showed earlier on the show how much tuition has increased, and the reason is you get a huge amount of money from the federal government that the colleges understand, supply and demand, allow them continue to crease their tuition.
You showed that public institutions increased tuition by 27% since 2007 and the more expensive private colleges are about half of that. So, essentially, it's inflating the budgets of universities, everybody understands that. In fact, Obama mentioned in one of his State of the Union addresses the kind of attempt to rhetorically demand that colleges roll back tuition. But why should they? His words against a lot of money. So, I think that is the root of the problem.
The other problem is: How do you get out of debt? With a job. And the prolonged unemployment, the high chronic unemployment and the fact that youth unemployment is so high is a reason why this is a more crushing debt than it would be in normal conditions. (Special Report, July 1, 2013)