State support for public colleges and universities has fallen by about 26 percent per full-time student since the early 1990s.Critics also note that investments in higher education are severely tax disadvantaged compared to other investments.Even students who receive federal grant aid are finding it more difficult to pay for college." Another proposed cause of increased tuition is U. Congress' occasional raising of the 'loan limits' of student loans, in which the increased availability of students to take out deeper loans sends a message to colleges and universities that students can 'afford more,' and then, in response, institutions of higher education raise tuition to match, leaving the student back where he began, but deeper in debt.In 1987, then-Secretary of Education William Bennett argued that “...So it stands to reason that so few retirees had their Social Security checks nabbed back in 2000 to repay their student loans because they probably didn’t borrow federal student loans to attend college in the mid-1970s.For example, a retiree who was 62 in 2000 would have been about 37 years old in 1975, past the typical age for higher education.Tuition has increased as the value, quality, and quantity of education has increased.
One cause of increased tuition is the reduction of state and federal appropriations to state colleges, causing the institutions to shift the cost over to students in the form of higher tuition.A third, novel theory claims that the recent change in federal law removing all standard consumer protections (truth in lending, bankruptcy proceedings, statutes of limits, the right to refinance, adherence to usury laws, and Fair Debt & Collection practices, etc.) strips students of the ability to declare bankruptcy, and, in response, the lenders and colleges know that students, defenseless to declare bankruptcy, are on the hook for any amount that they borrow -including late fees and interest (which can be capitalized and increase the principal loan amount), thus removing the incentive to provide the student with a reasonable loan that he/she can pay back.However, changes in the availability of bankruptcy discharge for private student loans caused no changes in the pricing or availability of private student loans, suggesting that this theory is implausible.But someone who turned 62 in 2012 would have been in his prime student loan borrowing years – in his early 20s – right around the time federal student loans became widely available.Retirees claiming benefits at age 65 in 2012 would have been in their late 20s in the mid-1970s. Most of them agreed — finding out someone we’re dating had K in debt would be a red flag, but if it was for student loans, that would be one thing.