Much has been made of Obama’s new college affordability plans but like Obamacare, the president’s plan could have a reverse effect.

Charlie Kirk of Breitbart reports.

Obama Plan to Make College Affordable Will Raise Costs

This week, President Obama is hitting the road to unveil his plan to “combat the soaring costs of higher education.” His three part plan consists of connecting financial aid to school performance, supporting academic innovation, and making college more affordable.

His road tour and policy initiatives sound good in the nightly news cycle. They make for great talking points, but President Obama’s plan does not address the fundamental reasons behind why tuition is rising. Both sides can agree that rising college costs are a big problem and burden for students. But more college subsidies and government aid will not solve the problem; in fact it is the reason why tuition is rising.

Over the past thirty years tuition has risen by over 250%, despite Washington continually putting forth new government aid programs and subsides with the attempt to cut tuition costs. The more money Washington puts into the hands of students only enables the colleges and universities to continue propping up the price of education.

When students have access to low-interest loans and government aid, colleges have no incentive to cut costs. Why should a college lower tuition if more students are able to pay with subsidized loans from the government?

Neal McCluskey, associate director of the Cato Institute said, “Basically the aid ensures that students can pay almost anything they are charged.” Universities have no reason to lower tuition because they know whatever sticker price they put on a college degree, there will be students ready to take out low interest loans to pay for it.

According to the National Center for Education Statistics, 71% of all undergraduate students received some type of financial aid in the 2011-2012 academic year, up from 66% in 2007/2008. The average amount also grew from 9,000 to 10,800 in just four years.