President Obama unveiled his latest college affordability plan in time for the start of the new school year. Yet his proposal for a government-issued “College Scorecard” shows he needs more homework about why college is so expensive.
Under the
president’s plan, starting in 2015, colleges would be rated according to their
“value,” measured by tuition prices, the proportion of low-income students
enrolled, graduation rates, debt loads carried by graduates, the advanced
degrees they attain, and graduates’ earnings. By 2018, federal aid would be
dispersed to institutions based on their ratings.
The president
has suggested that giving people more information is a surefire way to drive
college costs down. But bad incentives, not bad information, are to blame.
Colleges have
raised tuition prices and let costs run amok for decades — all the while
directing more of their own institutional aid to students from wealthier families. Still
the federal aid just kept coming.....To Read More...
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