<p>What incentive do educational institutions have to be fiscally responsible if they know that the Government will use taxpayer dollars and pay them off? Let’s say the government will give grants of $50K to every student - the only sure thing that will happen is that colleges will hike the tuition to a hundred grand. And I don’t really see why non-profits will behave any differently than the for-profits.</p>
<p>The fact that education costs have risen at a higher rate than inflation for decades suggests that there is opportunity in cutting that colleges are not being forced to do like the rest of society. The best way forward is not to let students of yesterday with debt off the hook so that the students of today are wary about acquiring debt forcing colleges to cut costs or not fill their classes. The risk of course is that some politician sees an opportunity of locking in this constituency by bribing them with our money.</p>