What comes first the chicken or the egg? The subsidies came about because of the hike in tuition fees. The sensible economic move would have been for US administrations to cap tuition fees.
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Exactly why tuition increases far exceed the rate of inflation.
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Bingo. Why wouldn't I overcharge as a university knowing that the fed will grant any loan to my incoming students. Duh
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I skipped most of my econ classes in college because they were at 8:00am and grinded out a passing grade on the written final exam. The reward system of grades is another scam of the education system but I can confirm that this C- student is not surprised.
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Just like Obamacare increased health care and prescription costs.
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Jack, it’s more like I understand greed. Make the guaranteed money available and gee, there’s an opportunity to increase prices!
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Don’t forget the administrative additions of Chief Diversity and Inclusion Officers that make $150-$350K a year.
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When the Fed. govt. wanted banks to loosen lending standards, and said they would "back stop" them, home prices went through the roof. Obviously when the Fed's backed student loans, colleges raised tuition. When lending standard don't matter privately ....but are okay by govt..pic.twitter.com/XWX6L2GlDI
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Can somebody explain it to me in layman's terms... Pictures welcomed
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By taking the immediate cost to the student out of the equation - offloading the debt to the future, risk to the American taxpayer - universities had every incentive to raise costs and not worry about students making money to pay back the loans. Classes on pop movies? Sure!
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