Tuesday, February 11, 2014
How Federal Financial Student Aid Hurts Struggling Families - Julian Adorney
Unfortunately, it's unintended consequences are pushing college tuition higher, and that hurts those who don't finish and students who are poor...
At Townhall.com, Julian Adorney has statistics like these and much more:
"Pell grant awards have increased 118 percent over the last decade. Well-meaning as the aid may be, the two facts are inextricably linked. Government aid drives up college tuition. While aid undoubtedly has helped many families, it has hurt both the average family, and, paradoxically, many of those at the very bottom of the income scale.
The fact that federal student aid drives up college tuition is well-documented by both liberals and conservatives. Writing for the Cato Institute, Gary Wolfram points out, 'Private four-year colleges increased listed tuition prices by more than two dollars for each dollar increase in Pell grants.' Public universities also increased their tuition by $0.97 for each dollar increase in Pell grants. At the same time, the Christian Science Monitor published a report arguing that for every $1,000 of student aid, net tuition (college sticker price - financial aid) decreased by only $100 to $150. So when financial aid rises $1,000, tuition increases $850 to $900.
But while the link between federal aid and tuition hikes is clear, who it helps and hurts is not as cut-and-dried."
