"I was making the simple point that families use vacation dollars, not college tuition money, to have fun," Obama said.
This is a clue to how the President thinks about money. He sees money as funds to be taken from here, and used over there. A very governmental view of money. Money can just be shifted from this program to that. But, the source of the money is not given much consideration.
The reality is money is fungible. Any dollar that is spent on vacation, is a dollar that is not available for tuition. As an individual, or a family, dollars are interchangeable.
There is nothing wrong with spending money on a vacation, but those are dollars that will not be available for any other use, they are spent.