Obama vows college cost controls

President Obama vowed to “shake up” higher education and “tackle rising costs,” in a speech on the economy that stressed college affordability for middle-class families.

A bipartisan student loan bill that will lower interest rates — at least for now — has passed the Senate and is expected to become law. The compromise ties interest rates to the government’s cost of borrowing.

Parents are spending less of their income on their children’s college costs and relying more on grants, scholarships, financial aid — and frugality — Sallie Mae reports.

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  1. Sharon R. says:

    The President may wish he could lower college costs, but he won’t really want to do it – because the quickest way to lower college costs is to reduce the availability and size of student loans. The more money available to colleges in the form of loans, the more income colleges then spend fancying up their campuses, the higher their fixed costs rise, and then the higher tuition rises. (Poke around in the archives of “The Economist” magazine for articles on this topic.)