Here’s the basic equation for why student debt levels increase: State budget cuts translate to higher tuition, which results in increased borrowing by students and parents. Today, more than 40 percent of the revenue at public colleges comes from tuition, according to the State Higher Education Executive Officers Association. And in states such as Delaware and Vermont, it’s at roughly 70 percent. A generation ago, it was 20 percent. Borrowing large amounts of money to pay for a college education is a serious problem that demands attention. But misdiagnosing the nature of the problem does nothing but confuse the issue.
