Via Instapundit, a new piece by Liz Peek at The Fiscal Times.

How Gov’t Student Loans Ruined College Education

President Obama and Congress are squabbling again – this time over the rates charged on federal college loans.

Surrounded by students nicely turned out in suits and dresses, looking more like the Mormon Youth Chorus than today’s undergraduates, Mr. Obama recently chastised Congress for not yet blocking a doubling of rates for new Stafford loans set to occur on July 1.

As the president well knows, the House has already passed a bill preventing the hike and tying new loan terms to market levels. The president’s solution is similar, but would lock in rates for the duration of the loan. The spat is like bickering over menu choices on the Titanic.

Between 2000 and 2010, the number of students enrolling in degree-conferring institutions increased 34 percent. The portion receiving federal aid skyrocketed from 31.6 percent to 47.8 percent, and the average award nearly doubled. In addition, the percentage taking out student loans climbed from 40.1 percent to 50.1 percent, and the average borrowing rose 76 percent.

The ramp-up in loans to students has not only driven up costs but has undermined the value of a college degree. Some 30 percent of people ages 25 to 29 are college graduates today, up from 12 percent in the 1970s.  That is a notable achievement, unless the degrees awarded do not satisfy the needs of the job market. Richard Vedder, economics professor at Ohio University, has written that we have one million retail sales clerks and 115,000 janitors with college diplomas. At the same time, one fifth of the country’s managers say they can’t find skilled workers to fill job openings. Something is not right.

Rising student debt is a menace–not just to the families involved but also to the economic recovery. As with housing, the government’s well-intentioned effort to make advanced education available to all has led to crippling borrowing by millions of Americans.