Gee. Let’s give taxpayer money to everyone, everywhere to go to college, whether they are qualified or not.
That would be quite a government teat for higher education to suck on.
I certainly don’t recall any staff reductions at any college, anywhere, anytime, though I am sure it has happened.
As costs go up...they just increase the amounts of money they get from people who are willing to pay, and get more taxpayer money for people who can’t or won’t pay.
In effect, college didn't really become more expensive... rather, your dollars got smaller. :D
Idiots never learn.
We had a mortgage loan crisis here in America because the gubmint made it easy to borrow cheap money against your home with a “We’ll worry about it someday” attitude on repayment.
They are doing the same thing with student loans. Watch and see if the liberals don’t press for a total forgiveness of all student debts making college expenses even higher and creating another recession like we had in ‘08.
The amount of this debt on he street is about three trillion.
1 million APPLE jobs went to China because we don’t have vocational training any more. We expect everyone to have two degrees on borrowed money and protest .
Captain Obvious there. Of course the student loans are responsible. As long as the schools know you can borrow, they will charge as much as they can.
I think the greed of the academic establishment has something to do with it too. And what a great irony that is. No one forced universities to increase tuition in lock step with government aid. They did it because they could and because the faux Communists that infest the university administration and professorial staff are, at heart, greedy and selfish. They want six figure incomes to teach one class a year.
Any student of basic economics would not need a study to assign the cause. Only liberal idiots who seem to be unable to grasp basic economic theories need fancy studies, and even then they’ll ignore them or attack them because they do not support their world view.
It’s sad to see education become a racket but that’s exactly what’s happened. Embry-Riddle (at least where I’ve experienced it) is total diploma mill. There are tons of military people getting worthless “pay your fee and get a B” college degrees. It’s disgusting that that school calls itself a university and it’s disgusting that taxpayer money is pouring into that place.
I went for one semester because the military tuition assistance paid my way and I couldn’t in good conscience continue. I dropped that grad program and went on to get a much better master’s in mechanical engineering at a different school. Best thing I ever did.
From: Richard Vedder [mailto:richard.vedder1@gmail.com] Sent: Wednesday, June 27, 2012 6:56 PM To: Retain Mike Subject: Re: Federal Student Aid and the Law of Unintended Consequences Retain Mike, There is a new academic study that confirms that tax based aid leads to reduced institutional support. Thanks for your email. Rich Vedder On Jun 27, 2012, at 2:44 PM, "Nolan Nelson" wrote:
I read your article about federal financial aid with some interest since I am a retired chief financial officer for a small private college. I would add to what has occurred a less charitable interpretation than the Law Unintended Consequences. I need the following story to illustrate my point.
As part of applying for participation in federal programs each year colleges prepare sets of student budgets. These then appear in the award letters. The Department of Education when analyzing the student and family data provide an expected family contribution. The difference between the budget and expected family contribution the college then attempts to fill up with awards. In most cases, at least for privates, there remains an unmet need. However, students still successfully complete the school year. I analyzed this figure annually to hold financial aid people accountable for adopting standard for awards which took into account reasonable measures (they didn’t think so) of this unmet need for the next year.
Now comes the American Opportunity Credit and Lifetime Learning Credit that are supposedly of direct benefit to the student and their parents. I plugged those into the figures for unmet need to require greater average contributions and lesser awards by the college. I made sure the student and their parents were conduits for and not recipients of the majority of these tax benefits.
This story illustrates how financial people have behaved ever since the feds started throwing money at colleges. Similar information has always been part of the pervasive public knowledge available for Pell, SEOG, GSL, etc. There was always any number of professionals who were available to testify concerning the inevitable consequences of these programs.
Such individuals were ignored and/or never given a forum. The programs were just too attractive to assist in re-election. I would propose the Law of Premeditated Ignorance accounts for this phenomenon much more accurately than the Law of Unintended Consequences that is usually proposed to evade responsibility for obviously stupid actions.
Federal Student Aid and the Law of Unintended Consequences http://www.capoliticalreview.com/top-stories/federal-student-aid-and-the-law-of-unintended-consequences/
I said this back when they first were instituted
They should cap tuition aid to some multiple of the average first year out income for that degree at that institution. That would solve a number of problems:
* Defund useless degrees
* Force universities to cough up the truth about the financial deal the students are getting
* Encourage students towards more sensibly priced universities
I say cancel all federal financial aid except Merit based scholarships. all you have to do is look at the different housing for university presidents to no what’s happening with student aid money. if you did that there would be about 2-3 years for the university system to adjust but I bet the universities would cut there tuition fast and the cost of books would go down also..20 years ago my Biology book was 100 dollars hate to think the cost today
Amazing how subsidies ALWAYS drive UP the cost of anything, including housing, education and (GASP!) health care!
DUH.
They have just now figured this out?
Next thing you know they will figure out the price of beef skyrocketed after the food-stamp boom.
F-in’ morons.