"Parks and Recreation"/NBCAssets in 529 college savings plans increased by more than $5 billion in 2015 to hit a record $253.2 billion. The total number of accounts grew 3.6 percent to 12.5 million. More than half of accounts received contributions last year.
There is little doubt that easy access to federally subsidized student loans have contributed to the astronomical increase in the cost of attending college in the United States. After all, what 18 year old would turn down $200,000 in free money to party for 4 years? As an added bonus, when you figure out upon graduation that your degree in anthropology if fairly worthless, you can always just move back in with mom and force taxpayers to pick up your debt burden. Anything less would be a substantial "triggering" event and we just can't have that.
It is common knowledge that in the hierarchy of bubbles, not even the stock market comes close to the student loan bubble. If it isn't, one glance at the chart below which shows the exponential surge in Federal student debt starting just after the great financial crisis, should put the problem in its context.
As the middle class erodes in the US, we have pointed out the many things that have continued to financially squeeze what is left of The American Dream out of the average joe, from rent becoming increasingly unaffordable to healthcare premiums exploding higher.
For those who, like Time magazine and its exhaustive treatise on soaring healthcare costs, are shocked and confused how it is possible that prices for some of the most rudimentary staples, among them basic medical care and college tuition, have exploded we have the answer.
President Barack Obama called for linking financial aid to college affordability when he addressed Congress last month, but even as costs keep rising, some experts say not to expect crucial changes this year.
Reforming how financial aid is distributed – with incentives to keep tuition down – probably won’t come until after Congress tackles equally thorny changes in primary and secondary school education, known as K-12 in the U.S.
College is expensive.?? Ask any family with post-secondary students and they will tell you just how outrageous are the costs of college education today.?? And yes, gas, food, and life in general are expensive.?? But college costs have risen much faster than average inflation for decades so this isn't a short-term phenomenon.?? College costs are ...