“high tuition, high aid” model: Social justice, socialism, or admin jobs program?

[notrichenough]

<p>

If it costs the college $70,000 per student to run its educational operations, and full tuition is $45,000 per student, then those paying the full $45,000 are not subsidizing those who are paying only $10,000. Then all students are being subsidized by the college from non-tuition sources of revenue, some to the tune of $25,000, and some to the tune of $60,000.

I believe most schools have a fixed financial aid budget - it is a zero sum game.</p>

<p>If I get a smaller subsidy because I pay more, and that allows the school to give you a bigger subsidy so that you can pay less, then I am still subsidizing you. It doesn’t matter if what I am paying covers the full cost or not.</p>

<p>

1. The Harvards of this world. For these institutions they could probably fill their class charging $150K/yr. On the other hand, they could probably charge 0K and live off endowment income, at least for a while.

Or forever. To be free for all undergrads would require around 1% of Harvard’s endowment per year.</p>