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Some of the programs suggested by our President in his recent speeches on higher education affordability completely miss the mark. Stafford Student Loans are set to go up in interest rates from 3.4 to 6.8% in July.

President Obama called on Congress to stop this increase through legislation in his discussion on college costs. This is welcome news for those with loans. However, this move is without direction and wisdom.

The ugly truth behind college loans is bound to surface sometime soon. Even under good economic conditions, there is no guarantee for students taking out student loans that they will be able to pay back. Statistics show that the present economy is not good at all with more than fifty per cent recent college graduates being under employed or unemployed.

It is evident that the legislation approval allowing capping of payments to a percentage of their income or make no payments at all temporarily came as a welcome relief to indebted students. However rather than alleviating the issue of high debt, this measure only applies temporary glue as a patch.

Rather than solving their crisis, this only postpones the inevitable, making students bonded to the situation forever. This means, graduates old enough to be marrying, purchasing a house and planning for their children’s education will still be repaying their own student loan.

Our President is right in the argument that it is the duty of every student to make informed choices. This is easier said than done as teens hope to rule the world and for them not much is unaffordable. This is especially true in situations where they are spending not their own but someone else’s money.

Evidently, the true cost of college education is camouflaged by using money dished out by other taxpayers. Extending tax credits and increasing Pell Grants does show a lack of understanding.
Free marketplace is distorted as under a different situation, colleges would be competing healthily for applicants with costs as the basis.

In the eighties, we saw the scrapping of the employee’s health care insurance. Employees woke up and started shopping smart as they had to pay their own insurance in future. It was not someone else’s money but their own and so they had to get the best deals.

The situation is similar now. Irrational indebtedness is an issue that is going to grow out of proportion due to government sponsored solutions. Students will never be in a position to understand and appreciate the real higher education cost.

Our President must certainly understand and appreciate other paths that do not require students to take on outrageous loans. Those who cannot afford it can attend community colleges for their four and two year degrees. Training is offered by community colleges in high demand areas such as auto mechanics and skilled machine operators.

The old fashioned path to higher education is still an option. Students could work during the day and attend night schools.