It's up to state and local governments to find ways to fund education programs for students and their families. Media outlets like The Washington Post and the Associated Press are telling the same story. Donald B on 2/11/2016 3:05:32 PM commented: Federal Aid is one factor in ever rising student costs. Check for fees, Public college costs jump 55% in a decade, 3 ways to save and succeed at a community college, Parents are latest victims of student debt crisis. The borrower then becomes responsible for repaying the loan. Could federal student loans be allowing colleges to increase prices? You're not alone, Using the bank your college recommended? This is becoming a particularly serious problem at public universities, since they have more former faculty members who opted for retirement than the private schools. But a new study tells a different story–how easy it is to get federal student aid (loans!). At its most basic level, it’s a story of supply and demand-- lots of people want to live here, and there aren’t enough homes to go around.. But is that the real reason why college tuition is getting so high? Why the Government is to Blame for High College Costs Federal student loans are driving up college costs and adding to the deficit. The burden of paying for higher education is becoming a major campaign issue, and Democrat contenders like Elizabeth Warren and Bernie Sanders are blaming the situation on reduced government funding. The Harvard study found that Naviance, a college counseling software used by more than 40% of high schoolers, shifted students' choices about which colleges to apply to and attend based on information on classmates submitted about their admissions experiences. The rising cost of higher education is one of the most difficult realities facing Americans. Education for student loans and substance abuse, of course, aren't mutually exclusive, but I believe we should spend more money, time and attention on addressing the student loan crisis by educating students before they take on the debt. Lobbyists tend to blame budget cuts from state legislature. Like students who had to pay more, the federal government seemingly upped its commitment, covering just 10 percent in … According to research by the University of California, Berkeley, the annual cost of paying interest on that debt is now at $11 billion. In 2011, residents of the Borough of Princeton actually challenged Princeton University's property tax exemption. Lobbyists tend to blame budget cuts from the state legislature. A lack of information and support for high schoolers from state and local governments about future college costs is. The video claims that federal and state funding for higher education has steadily decreased since 2008, which has resulted in rising tuition costs. By 2013, states covered a mere 30 percent of college costs. I am a financial planner at lifelaidout and author of Work Your Money, Not Your Life. By way of comparison, outstanding student loans now total $1.5 trillion. As an example of what that means in actual dollars, the sticker price to attend Harvard University was $33,000 in 2000 and has increased to nearly $68,000 today. Completely removing access to federal student loans for a college's students could severely decrease demand. Researchers have been trying to prove or disprove the Bennett Hypothesis for three decades. A new study from the National Bureau of Economic Research says yes – government is almost entirely to blame for the rise in the cost of college. From 2008 to 2009, the average tuition and fees for students attending public four-year colleges increased from $7,008 to $8,893, according to a report by the College Board. 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