Students forced to borrow more to finance college educations

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.  

As more college graduates default on their student loans, some schools are taking drastic measures to ensure repayment. According to a recent Bloomberg report, Yale, the University of Pennsylvania and George Washington University have taken defaulters to court in recent years to try to force them to pay up. The schools are targeting recipients of Perkins loans, which are subsidized loans usually awarded to lower-income students with exceptional financial need.

As more college graduates default on their student loans, some schools are taking drastic measures to ensure repayment. According to a recent Bloomberg report, Yale, the University of Pennsylvania and George Washington University have taken defaulters to court in recent years to try to force them to pay up. The schools are targeting recipients of Perkins loans, which are subsidized loans usually awarded to lower-income students with exceptional financial need.

Low-income students who make it to college have an unfortunate tendency not to graduate, and as Monica Potts writes we know some things that work to turn this around:

The cost of a college degree rose to record levels in 2012 –– a staggering 8.3 percent increase from $4,793/year to $5,189/year at public universities. That exceeds the average 5 percent jumps that occurred over the last three years. Why the sudden jump? 

From Jeff Jacoby in today's Boston Globe: 

…A:  When loans to purchase it are subsidized, the price of it goes up!

In the worst possible form of kicking the can down the road, at the worst possible time as well (given the lofty overvalued condition of the stock market), To Pay New York Pension Fund, Cities Borrow From It First.