THE COLLEGE RACKET – TRUTHS ARE STARTING TO BE TOLD – AT 12:15 P.M. ET: Ever wonder what is driving the cost of college up to astronomical levels? A new, serious, study has some answers that the political left will not enjoy. From Fox:
A new explosive study has found a direct link between expanded federal aid and rising tuition rates among the nation’s colleges and universities, re-energizing a debate over the escalating cost of post-secondary education for millions of Americans.
Critics say the findings prove a long-held theory that current aid policy is not helping, and may be actually hurting families who are struggling more than ever to afford college, and paying off a mountain of debt for the privilege.
“It’s a disturbing problem because when the government is trying to do something critical to educational success, trying to do something about the increasing wealth gap in this country, and then (schools) raise their prices and absorb it all – you’re just kicking the legs out of the government policy,” Erik Sherman, who writes about income disparity and education for Forbes, tells Foxnews.com, calling the situation a "tuition arms race."
The study, conducted by researchers for the Federal Reserve Bank of New York, found that for every new dollar made available in federally subsidized student loans, schools – particularly expensive, private four-year institutions – rose their rates by 65 cents.
COMMENT: This is not surprising. Colleges are not the wise and virtuous places they claim to be. They're political, sometimes corrupt, always looking for a fast buck. Give them aid and they often squander it on this year's fashions, forcing new tuition hikes.
What if we, as a nation, cut off all aid to higher education outside the sciences? Schools would then either have to raise tuition dramatically, driving students away, or cut their own expenses, which would be a public service.
Or, we could link federal aid to a school's endowment. Let them spend some of their own cash for a change. And let them examine if they really need that new department studying the literature of left-handed Pacific Islanders with trans tendencies. You know what my answer is.
July 12, 2015 |