The Rising Tide of Education Subsidy

A rising tide lifts all boats.  That's what President Kennedy said in a happier time when he lowered tax rates. But what about the rising tide of education subsidies?  Last week the House of Representatives passed the College Cost Reduction Act of 2007 by a vote of 273-149."This bill is a remarkable step forward in our efforts to help every qualified student go to college," said Rep. George Miller, D-Calif., chairman of the education and labor committee and author of the legislation, in a statement. "With this bill, we are saying that no one should be denied the opportunity to go to college simply because of the price."The bill increases Pell Grant limits, provides that graduates won't have to pay more than 15 percent of discretionary income in repayments, and provides loan forgiveness for certain "public servants" after ten years and for everyone after 20 years.  This will all be paid for by a reduction in subsidies to student loan...(Read Full Article)