JoJosMom Posted July 11, 2015 Share Posted July 11, 2015 An interesting study by the NY Fed finds a link between rising college tuition and the availability of federal aid. Credit Supply and the Rise in CollegeTuition: Evidence from the Expansion in Federal Student Aid Programs Quote Link to comment Share on other sites More sharing options...
frogger Posted July 11, 2015 Share Posted July 11, 2015 I personally believe easy money and the mentality that everyone must own a home is why homes are so expensive. This is similar. In textbook economics a government can shift supply and demand curves through taxation and subsidies. So we comprehend that "government" at various levels has increased housing, health care, and education costs at tremendous levels or we rip out of econ texts the whole chapter on shifting supply and demand curves. 4 Quote Link to comment Share on other sites More sharing options...
G5052 Posted July 12, 2015 Share Posted July 12, 2015 Also declining state support for higher education, and the attitude that nearly everyone should try to go to college. I teach at community colleges that hover around a 25% graduation rate, and many, many of the students who don't make it have loans. It really is a sad situation. Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted July 12, 2015 Share Posted July 12, 2015 Demand side subsidies usually do drive up price. It's one of the reasons school vouchers make zero sense, especial since proponents tend to be big on their support for supply side. Supply side subsidies do more to keep tuition low. Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted July 12, 2015 Share Posted July 12, 2015 Also declining state support for higher education, and the attitude that nearly everyone should try to go to college. I teach at community colleges that hover around a 25% graduation rate, and many, many of the students who don't make it have loans. It really is a sad situation. The community colleges here don't participate in loan programs and haven't for more than 20 years. Students who qualify can get grants (pell, state) and scholarships. Quote Link to comment Share on other sites More sharing options...
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