When President Obama spoke on higher education during his State of the Union address on Tuesday, he was long on rhetoric and short on action. Education wasn’t a focus, but what was said wasn’t promising.
“And we have to make college affordable for every American. Because no hardworking student should be stuck in the red,” Obama said. “We’ve already reduced student loan payments to 10 percent of a borrower’s income. Now, we’ve actually got to cut the cost of college. Providing two years of community college at no cost for every responsible student is one of the best ways to do that, and I’m going to keep fighting to get that started this year.”
Obama painted a rosy picture. Students aren’t so hampered by student loan payments. They can attend community college for free. The cost of college won’t weigh down on them. The reality, however, diverges from that narrative.
Students have expanded access to “income-driven repayment plans,” which reduce student loan payments based on the income a student earns. When more students flock to those programs, the federal government is responsible for what the student doesn’t repay.
The Obama administration has expanded those plans, but they do little to reduce the use of student loans. They only shift the costs of the federal student loan program.
Many initiatives in higher education have driven up enrollments, even though they have declined in recent years, led by students leaving for-profit and community colleges in droves for an improving economy.
More students, however, doesn’t necessarily boost the economy, or social advancement for graduates. Stronger graduation rates and skills development could be a more reliable indicator, and those aren’t forthcoming.
The Obama administration’s approach to higher education has been for more money to fix its issues, but the effectiveness hasn’t been clear.
“More money in higher education has meant higher prices … but we don’t see more people with more of the skills and abilities that they need. But we do see a lot more people with debt,” Neil McCluskey, director of the center for educational freedom at the Cato Institute, said in a response.
Routing more money for more federal involvement in colleges hasn’t ebbed the tide of debt, and default remains a problem for students, even when they borrow small amounts. The message from the State of the Union, however, isn’t promising. The only acceptable solution for the problems within the college system, it appears, is a blank check.
