Posted on 10/19/2018 7:09:36 AM PDT by reaganaut1
Last month, Amanda Riley, writing for The Atlantic, asked a good question: why does higher education in the United States cost significantly more than in every other OECD nation except Luxembourg? Related to that: Why have college costs risen sharply over time?
Unfortunately, while the questions Riley raises are compellingly important, the answers she provided are, in my opinion, severely wanting.
She fails to even fleetingly mention one thing unique to American higher education that has been an enormous factor in driving up costs: the federal student financial assistance programs. The money from those programs has provided universities an opportunity to raise fees aggressively, using the proceeds to fund a very costly and unproductive academic arms race, including ultra-posh buildings, climbing walls and lazy rivers, and college sports programs that are out of control both financially and morally.
From roughly 1840 to about 1978, when federal student financial assistance was either non-existent or of modest size, college tuition fees, adjusting for inflation, rose on average about one percent a year. Since 1978, tuition inflation has escalated to about three percent annually.
Careful empirical studies performed both by the New York Federal Reserve Bank and the National Bureau of Economic Research confirm what former Education Secretary William Bennett opined three decades ago: whenever the feds give another dollar of financial aid to students, colleges raise their fees by a majority of that dollar, capturing for themselves what was designed to help students.
As published fees have soared as a consequence, price-sensitive lower income persons have actually been increasingly turned off by college, so a smaller proportion of college graduates come from the bottom one-fourth of the income distribution than in 1970.
(Excerpt) Read more at jamesgmartin.center ...
Government subsidies.
Anything the government pays for always costs more than it should.
Bingo! There is no incentive for colleges to reduce costs.
When only the truly qualified were admitted, the prices had a control.
Student loans backed by the government....
that and the proliferation of “administrators”
Because - gummint loans.....
It’s not a “perennial question”. When I went to college, it didn’t “cost so much”. It doesn’t have to be the way it is now.
Because the government got involved in handing out “student loans” like they were candy.
The colleges could charge anything they wanted, and the dumb 18-year olds would borrow it.
Because HR departments knee-jerk Degree requirements for the most mundane office jobs, consquently creating a ‘forced market’ for colleges and a totally manufactured-demand for college attendance.
Answer: You can control someone who is in debt.
Same here. I got out with only 12k in debt. That’s chump change now.
Bingo.
President Trump should immediately cease and desist any and all federal programs supporting colleges and universities. And stop all federal loans and grants for students. Stave the beast. Not another dime.
because people are willing to buy into the idea that they need to go and either pay thru the nose or leech off govt or scholarships etc which in turn make the colleg jack up prices to those paying actual money.
Government backed student loans. DUH! As long as the morons running the program are willing to burn our money in loans, colleges and universities will suck it all up.
It is like healthcare, with government subsidies there is no incentives to reduce costs.
With the improvement in computers, networks, and video conferencing the price of college should have declined over the past 20 years. There is no reason why class size couldn’t be much larger by conferencing with questions sent in remotely. This would have reduced housing costs as well, We should have been able to have more students taught by fewer and better qualified professors.
Okay, but how are those who are “socially promoted” into college paying for it?
With your money and mine, of course. Which is why prices have risen.
If we taxpayers quit wasting our dollars on this crap, two things will happen.
1. College expenses will plummet downward.
2. College standards, grades, and performances will skyrocket upward.
Yes, sorry I didn’t elaborate.
The only way to “promote” the non-college ready crowd is to subsidize them. And you are correct, it’s with OUR money.
Answer: You can control someone who is in debt.
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Very good answer. And add in the fact that many if not most colleges and universities are little more than liberal indoctrination centers filling young skulls full of mush and lies.
“Thank you sir, may I have another.”
“since many more people today are “socially promoted” into college who don’t belong there (I’ve seen it first hand), the price is going to rise. “
But if the “socially promoted” kids have less money then colleges can either set an affordable price or not admit them.
Not everyone pays the quoted price. It’s discounted for select groups.
Also, because of financial aid and “forgiveness”.
Also, because many firms won’t hire anyone without a degree.
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