Economist Richard Vedder: Federal student loans ‘fuel academic arms race’
As combined student loan debts balloon to over $1 trillion, one economist believes enough is enough — the “tremendously explosive” student loan programs offered by the federal government need to go.

Ohio University economist and chair of Center for College Affordability and Productive Richard Vedder recommends that President Barack Obama and Congress work together to dismantle or greatly shrink the student loan programs that let young Americans rack up debt.

“I would go so far as to say that I think the federal government is more the problem rather than the solution,” Vedder told the Carolina Journal Radio during a Friday interview. “A lot of our problems… come from these tremendously explosive student loan programs and grant programs that the federal government provides.” (RELATED: Federal student sharks prey on cancer patients filing for bankruptcy)

Giving 18-year-olds fresh from high school with no financial skills free reign to borrow hundreds of thousands of dollars may not be the best course forward, Vedder said. Colleges flush with easy money spend it on administrative pay and luxury fitness centers, increasing tuition all the while....