Federal Aid Increasing Tuition

Paying for College
1

<p>"They found that for-profits that get federal subsidies charge, on average, 78 percent more than for-profit institutions that are not eligible for aid. The price difference is almost identical to the value of the subsidy."</p>

<p><a href="http://www.nytimes.com/2014/10/08/business/economy/why-federal-aid-for-higher-education-is-missing-the-mark.html"&gt;http://www.nytimes.com/2014/10/08/business/economy/why-federal-aid-for-higher-education-is-missing-the-mark.html&lt;/a&gt;&lt;/p>

2

<p>I think the main points are at the end of this article:

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3

<p>If I were the queen of federal financial aid, I would not give a dime of it to the private schools. Let them fund their own work study, Pell Grants and subsidized loans, SEOGs. The little bit they get from that I do believe lets them jack up their costs accordingly. Most all agencies who get entitlement money do that, and I see no reason why colleges are the exceptioh. PELL is not what is driving the high priced privates. It’s just licking the gravy off their spoon I’d divert those funds where they could do more good. </p>

4

<p>They need to take a hard look at for profit schools. That tends to be where the bad actors are.</p>