4. Do Loans, Grants, and Tax Breaks Really Make College More Affordable?

02/07/24 • 23 min

Government grants, easy access to subsidized loans, and tax breaks have made more money available to students, but somehow, students are even more overwhelmed with the burden of paying for college.
Theme music credit: Sunshine by lemonmusicstudio via Pixabay

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2. Individual Pricing of College Tuition Leads to Higher Charges

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In this episode, we discuss:

Individual pricing, the most important factor contributing to the rise of tuition sticker price at private colleges and universities.
The effect of economic surplus, market segmentation, and enrollment management in setting a price to extract the maximum amount of current and future wealth from a student and family.
How the relative increase in wealth of the top 5-10% both here and abroad and the desire for prestige has led to an increased demand for the static number of seats at selective colleges allowing them to increase the tuition they charge.

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5. What Role Do Rankings Play in the High Cost of College?

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Influential rankings are based on the wealth of an institution, not how much students learn. This incentivizes colleges to maximize income in order to remain competitive.
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Charging U - 4. Do Loans, Grants, and Tax Breaks Really Make College More Affordable?

Transcript

Episode 4

Do Loans, Financial Aid, and Tax Policy Really Make College Cheaper? Or Do They Do the Opposite?

Do Loans, Financial Aid, and Tax Policy Really Make College Cheaper? Or Do They Do the Opposite? We will answer these questions on today’s episode. I am Larry Bernstein and welcome to Charging U.

“Increases in financial aid in recent years have enabled colleges and universities blithely to raise their tuitions” William Bennett, for