Without easy access to student loans, colleges would not be able to charge such outrageous tuition. The wealthy can pay, but there simply are not enough of them, despite Buffet’s claim that his proposed millionaires tax will have any impact. The middle class is credit worthy enough to secure loans, which subsidize the “economically, socially/racially disadvantaged”, who cannot. This is tantamount to a redistribution of capital, from the pockets of those who have worked to contribute the most to the economy, to those who will be granted permission to contribute the least.
Both government and higher education are complicit in this theft, with government policies ensuring that college tuition skyrockets unabated, and that the cost of educating certain [favored] students is billed to other [less favored] students, literally a class action suit worthy of a high profile law firm. Congress should permit the rate hike, to stem reckless borrowing and debt, and massive default. Universities and colleges will have no choice but to lower tuition and operate within a budget. Otherwise, this will be the next big bailout.