Vance Fried has a new study out at Cato. Here is the executive summary:
Undergraduate education is a highly profitable business for nonprofit colleges and universities.They do not show profits on their books, but instead take their profits in the form of spendingon some combination of research, graduate education, low-demand majors, low faculty teachingloads, excess compensation, and featherbedding. The industry’s high profits come at the expenseof students and taxpayer.To lower the cost of education, federal government policies should encourage competition.Regulations should not favor nonprofits over for-profits. Further, the accreditation processshould be reformed so that any qualified institution can easily enter the industry. Thefinancial-aid process should be redesigned to remove the bargaining advantage that collegescurrently hold over prospective students.The higher-education industry is heavily subsidized by the federal government. These subsidiesplay a significant role in the high profitability of the industry and represent a massivetransfer of wealth from the taxpayer to the industry. This should change. All tax credits anddeductions should be eliminated immediately, as should all direct subsidies. The federal loanprogram should be restructured to eliminate the government subsidy and ensure that any deservingstudent can graduate from college without excessive debt, and eligibility for Pell grantsshould be tightened significantly. The net result of these changes would be greater efficiency andannual savings of $50 to $60 billion. To the extent that the federal government continues toplay any role in higher education, its goal should be to ensure that all deserving students have accessto higher education, not to maintain high industry profits.
It has become a trend in these parts (southeastern PA) to go to the community college for two years to get the basic requirements and then to transfer to a four-year college for the bachelor’s degree. Because Montco is subsidized by the state, the net price after financial aid for a kid who is living with his parents and is a member of a family of four with a $45,000 income is about $8 K a year.
When I went to the MCCC website, I could not find a straight answer to the cost of tuition and fees. Instead, I had to plug numbers into a cost calculator on the website. Socialism at its best. Maybe I shoulda plugged in a tax the rich income and one kid in the family.
Anyway, four-year colleges in the Philadelphia area are quickly pricing themselves out of the middle class American market. A high percentage of the students at, say, Bryn Mawr, are foreign students, mostly from Asia and India (only thirty percent or so are white Americans).
105436 550964i just didnt want a kindle at 1st, but when receiving one for christmas im utterly converted. It supply genuine advantages more than a book, and makes it such a whole lot additional convenient. i may possibly undoubtedly advocate this item: 38695
20622 655607I agree with most of your points, but several want to be discussed further, I will hold a small speak with my partners and possibly I will look for you some suggestion soon. 933334