Feds should cap student loans

One of the first aspect prospective students look at when looking into a university is price. The affordability and future debt that would be accumulated through attending a university are all important factors.

According to the Bureau of Labor Statistics, the cost of tuition had risen 538 percent since 1985. Not only is this a massive leap in price, but it is even more drastic when compared to the increase in the Consumer Price Index, which was a mere 121 percent. This means the price tag on higher education has increased 4.5 times in value in the past 30 years.

This drastic increase is due in part to the accessibility of large federal student loans, giving students a false sense of the ability to afford high-cost universities. according to Mary Kate Carey, writer for US News. The federal government must limit the amount of loans it provides as well as regulating the cost of large public universities. The increased accessibility of federal loans has led to a direct increase in university prices. "The more money the federal government pumps into financial aid, the more money the colleges charge for tuition," Carey says.

By decreasing the amount of federally guaranteed student loans, a competition between banks over private loan rates resurfaces. When banks can compete, and caps are placed on loans, universities will be forced to lower their artificially inflated tuition rates.

Israa Alzamli

Glendale Heights