Quickly on the heels of the release “Love Gov”
-- the Independent Institute’s satirical videos series on meddlesome government
-- a new study from the Federal Reserve Bank of New York concludes that federal
aid to college students raises the cost of higher education.
Duh!
Many observers have been puzzled by the relentless increase in tuitions
charged by private and public schools alike -- at a growth rate greater than
that of any component of the consumer price index, including health care. Some
blame the price increases on the greed of campus administrators. But that
assessment is an unfair oversimplification that fails to ask: what has enabled
schools to hike tuitions so much?
Most U.S. colleges and universities, whether public or private, operate
as not-for-profit entities, but that doesn’t mean they are run like charities
indifferent to the bottom line. If the tuition at a school is, say, $10,000 per
year, and some third party finances half that amount by providing a scholarship
or low-interest loan, it’s wishful thinking to believe that the student will
then pay only $5,000 per year. That conclusion would follow only if the tuition
charge remains unchanged – and that outcome is only a pipe dream……Read more:
No comments:
Post a Comment