Research

Today, President Obama Will Travel To Michigan To Announce A Plan Focusing On The Costs Of Higher Education. “President Barack Obama will announce Friday a plan to shift some federal dollars away from colleges and universities that don’t control tuition costs and new competitions in higher education to encourage efficiency as part of an effort to contain soaring college costs.” (“Obama To Spell Out Plan To Target Universities That Don’t Control Rising Tuition Costs,” The Associated Press, 1/27/12)

Under Obama, The Costs Of College Is “At An All Time High”

Over The Past Year, The Cost Of College Has Increased By Thousands At Public Universities. “Public four-year universities charged residents an average of $8,244, up 8.3% from last year, while public two-year schools charged an average of $2,963, up 8.7%, says the report by the non-profit College Board. About 80% of the nation’s undergraduates attend public institutions.” (Mary Beth Marklein, “Tuition And Fees Rise More Than 8% At U.S. Public Colleges,” USA Today, 10/25/11)

• Cost Of College Is A “Kick In The Gut.” “It's a kick in the gut even for students and families hardened to bad financial news: Average in-state tuition and fees at four-year public colleges rose an additional $631 this fall, or 8.3 percent, compared with a year ago.” (Justin Poe, “College Prices Up Again As States Slash Budgets,” The Associated Press, 10/26/11)

The Cost Of College Is Currently At “An All Time High.” “Nationally, the cost of a full credit load has passed $8,000, an all-time high. Throw in room and board, and the average list price for a state school now runs more than $17,000 a year, according to the twin annual reports on college costs and student aid published Wednesday by the College Board.” (Justin Poe, “College Prices Up Again As States Slash Budgets,” The Associated Press, 10/26/11)

• The Price Of College Increased Double The Rate Of Inflation Between July 2010 And July 2011. “That increase is more than double the inflation rate of 3.6% between July 2010 and July 2011. Family earnings dropped across all income levels. And state funding per student declined by 4% in 2010, the latest year available, and 23% over the past decade, the report says.” (Mary Beth Marklein, “Tuition And Fees Rise More Than 8% At U.S. Public Colleges,” USA Today, 10/25/11)

Under Obama, Student Loan Debt Is At An “All-Time High”

“The Rising Cost Of A College Education And The Failure Of Federal Grants To Keep Pace Has Led To Average Student Loan Debt Hitting An All-Time High.” (Tim Grant, “Education’s Cost Crisis,” Pittsburg Post-Gazette, 11/15/11)

• Average Debt For The Class Of 2010 “Ranged From $950 To $55,250.” “A report by the Project on Student Debt at the Institute for College Access & Success found that at the college undergraduate level, average debt for the class of 2010 ranged from $950 to $55,250 at the individual schools that reported student loan data. The percentage of students who graduated from those individual colleges with educational loans ranged from 2 percent to 100 percent of the student body.” (Tim Grant, “Education’s Cost Crisis,” Pittsburg Post-Gazette, 11/15/11)

• For The Class Of 2010, Michigan Students Graduated With An Average Student Loan Debt Of $25,675. (The Project On Student Debt, Accessed 1/27/12)

Obama’s Recent Executive Order To Help Students Has Rang Hollow

Obama’s Student Loan Plan Didn’t “Go Anywhere Near To Solving The Root Of The Problem.” “The student loan relief plan President Obama announced on Wednesday as part of his ‘we can’t wait’ for Congress to act tour, rings a lot like the refinancing plan he announced on Monday for underwater homeowners. It allows Obama to take credit for addressing an economic grievance of voters, but is a modest move that doesn't go anywhere near to solving the root of the problem.” (Stacy Kaper, “Obama Student Loan Relief Is Modest But Could Prove Politically Smart,” National Journal, 10/26/11)

• Obama’s Plan “Only Reaches The Tip Of The Iceberg” While Ignoring The Increasing Costs Of Tuition And Jobs For Graduates. “Consumer advocates who focus on student lending praised the effort as a first step but were plain that the initiative only reaches the tip of the iceberg. It chips away at student loan bills but does nothing to address soaring tuition costs, and the scores of recent graduates struggling to find jobs even with advanced degrees.” (Stacy Kaper, “Obama Student Loan Relief Is Modest But Could Prove Politically Smart,” National Journal, 10/26/11)

Consolidation Of Student Loans Under Obama’s Plan Would Provide Monthly Savings Of Less Than $10 For The Average Student. “Using these values as the high and low bounds of average student debt over the last ten years, the monthly savings for the average student loan borrower would be between $4.50 and $7.75 per month. Clearly, this isn't going to save the economy. While borrowers with bigger balances would save more, this is the average. And even someone with $100,000 in loans would only cut their monthly payments by $28.50.” (Daniel Indiviglio, “Obama’s Student-Loan Order Saves The Average Grad Less Than $10 A Mont,” The Atlantic, 10/26/11)