Health Care Bill May Spike College Costs

health care bill college tuition CollegePlus! staff have been sifting through the details of the student loan program that was stuffed into the health care bill, and we've made some alarming discoveries which could lead to costly consequences for college students.

Democrats in the House attached a student loan program to the health care reform bill which will vastly expand the amount of money taken from taxpayers to subsidize government-run student lending programs, thus creating a bureaucratic government lending network, squeezing out more efficient private-sector programs for college students.

College students could lose out on this deal for three specific reasons:

Both public and private colleges will increase tuition as they are given more access to federal aid. As colleges increase their expectations that a greater number of students will tap into an expanded network of government subsidized loans and grants, colleges may raise tuition fees as more students are lured by government loans.
Student loan programs will encourage more college students to take deceptively attractive loans. Student debt-load will be higher upon graduation, putting financial pressure on college grads as they attempt to enter the workforce.
Expanding government lending programs will increase the risk of loan defaults. Higher default risks correlate to higher interest rates, meaning it will cost college students more money to repay their student loans.

Annual college tuition hikes already outpace the rate of inflation, which puts an enormous financial burden on college students. This new student loan program will act as another catalyst for colleges to raise tuition and to encourage more college students to go into debt to pay for their already over-priced degree.

For these very reasons thousands of students trust CollegePlus! to provide an efficient and economical alternative to earning an accredited college degree--all without the student debt and need for government subsidized loan programs.

Click here to find out how CollegePlus! can help you earn a fully-accredited bachelor's degree in half the time and for 63% less than the typical college.

Follow @collegeplus

5 comments so far - Leave a comment below

Thanks for this information. I never even heard about any of this before the crazy health care bill got passed. Seems the gov't is trying to socialize the whole college system which is just another good reason to go with CollegePlus!

I just can't figure out why the gov't wants as many college students in debt as possible, they are forcing these loans down our throats.

— Matthew Monday, March 22, 2010 4:32 PM CDT

Thank you CollegePlus for the update, I wasn't aware of the student loan bill going into the health reform act. I can see how this is a bad thing even though it might look appealing to college kids. Take it from me, avoid the college debt!

— Jerri Monday, March 22, 2010 4:35 PM CDT

Every day I am incredibly grateful to CollegePlus for how they are enabling me to get my degree debt-free. It was always in my heart to remain debt-free and the more I look at the problems that debt brings on the average college student the more grateful I am that God laid this principle on my heart and led me to CollegePlus!

— Leah Monday, March 22, 2010 6:57 PM CDT

Great post on this health care fiasco. I read that many states are going to sue the government to stop the health bill, do you know how this will effect the student loan bill? This socialization of college education is getting out of control.

I hear lots of good things about CollegePlus, keep at it.

— Less Government Now Monday, March 22, 2010 8:39 PM CDT

This is exactly what economist Peter Schiff has been talking about.

http://schiffforsenate.com/?q=media/how-government-programs-drive-college-tuitions

He's running for Senate now, let's see if we can get him elected!

— Matthew Monday, April 5, 2010 10:07 AM CDT

Name:
Email:
Website:	(optional)
Comment:
Captcha:	What is 10 + 2?