View long held by conservatives is being adopted by more mainstream economists; New York Fed study faults government aid for letting colleges boost prices
Source: Federal Aid’s Role in Driving Up Tuitions Gains Credence – WSJ
Here is an explanation of the problem, which I put in a comment,
“…We focus our attention on sticker-price tuition rather than net tuition…” (page five of the Fed report)
That’s a big problem. Net tuition at private schools has been essentially flat from 2000 to 2015. Although net tuition at public schools has increased dramatically, it was the lowest in the past 20 years in 2000 and the highest in 2015, though it was still far lower than the government estimate.
(Thedetails, with references, are on my blog, inside-higher-ed. Look for the post How the Government Exaggerates the Cost of College.)
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