Author Topic: U.S. Universities Feast on Federal Student Aid: Who benefits? Not students!  (Read 482 times)

Steven

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U.S. Universities Feast on Federal Student Aid:

http://www.bloomberg.com/news/2011-12-09/u-s-universities-feast-on-federal-student-aid-virginia-postrel.html

My views would be along the lines of Henry David Thoreau and summarized as

Quote
“no man’s life, liberty, or property are safe while the Legislature is in session.”
-- Gideon J. Tucker, Final Accounting in the Estate of A.B. (1866)

The article includes some supportive & cynical comments. All responses are welcome. I'm not arguing for no government programs. I'm arguing there is substantial and credible evidence Gov. programs are inefficient and do not automatically help those for whom they are designed. In some cases, government subsidies increase the demand for some services causing shortages which drive up prices. Who wins? Not the little guy!

Are all government programs bad & badly managed, of course not! Is there room for review, revision or recession? YUP!

Blessings!

Blessings!


I do not believe in miracles. I rely on them!

Grant

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I feel the problem is with for profit universities.  They are the most expensive schools.  I don't think that the education they provide is any better than what one gets at public universities or at non-profit universities.  I would even say that in many cases, the education provided by for profit universities is not as good as what is provided by other schools.  It would be less expensive to provide more aid to public universities than to continue to guarantee student loans for for profit universities.

Steven

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Grant:

Possibly. But that's not the main point either. Comparing profit & not-for-profit universities would be an interesting study, however.

I've got degrees from both. I see  good & bad with both forms, no black & white, no clear cut dividing lines.
 Some of the "for-profits" make me sick with their corrupt marketing. Some colleges make me sick with tenured profs who are coasting to retirement embarrassing the whole profession. But, those are the extremes, granted.

The Major point is that when a group of folks who want a service or product are given subsidies whether from the Gov. or other sources, the price of those goods & services tend to rise reducing the value of the subsidies. 

FWIW, I'm 3 mi from the fastest growing non-profit college in Ohio: Stark State, next door to a branch of Kent State. (full disclosure, my health insurance agency is one of two that serve their students. However sales have been about 5% of original projections.)  Construction goes on year-round. They can't meet the demand. Either tuition rises or folks go to lesser schools or both.  Now, these are broad trends that can years to emerge, thus there can be lots of anomalies.

The main point is that whenever the Gov intervenes in the economy there is a domino effect not unlike the "Trickle Down" or "Trickle Up" theories. 

Its not a question of gov. student aid or none either. Its recognizing the long-term effects that reduce the benefits of those targeted by the Federal program. Then, using the analysis to design more effective programs.   According to Darwin, its adapt to survive or die. 

Blessings!
I do not believe in miracles. I rely on them!