Hey, that was a threadjack, let's continue this discussion here.
The way that universities get paid money is:
1. Tuition (Including Federal Loans/etc)
2. State Funding (public only)
3. Alumni/Gifts
4. Federal Assistance (non-loans, I am talking about the research grant/program type of thing)
5. University Programs (Store/Sports/Investment/etc)
The majority of students go to state schools, so we can limit our consideration to them.
In the past, more and more students have been going to university. This has required the universities to grow.
Additionally, the demand for the best and brightest has gone up a lot, so universities have to pay their professors in the sciences more than previously. This probably extends to other areas as well.
On the other hand, states have generally been pretty poor the last twenty (at least) years. People drop taxes, and states don't have the ability to take out loans like the federal government does.
Therefore there is only a couple ways that universities can keep up with the raising costs. They can do 1, 3, or 5. Most universities seem to try to do some of all 3.
I admit that the education subsidies puts some limits on how high they can raise tuition. However, this would cause them to reject students, which is the whole reason why they need more money in the first place.
If you don't consider that the universities goals are to educate everyone who is able and inclined, than getting rid of federal subsidies would be a good thing. Most people disagree with this.
JM
The way that universities get paid money is:
1. Tuition (Including Federal Loans/etc)
2. State Funding (public only)
3. Alumni/Gifts
4. Federal Assistance (non-loans, I am talking about the research grant/program type of thing)
5. University Programs (Store/Sports/Investment/etc)
The majority of students go to state schools, so we can limit our consideration to them.
In the past, more and more students have been going to university. This has required the universities to grow.
Additionally, the demand for the best and brightest has gone up a lot, so universities have to pay their professors in the sciences more than previously. This probably extends to other areas as well.
On the other hand, states have generally been pretty poor the last twenty (at least) years. People drop taxes, and states don't have the ability to take out loans like the federal government does.
Therefore there is only a couple ways that universities can keep up with the raising costs. They can do 1, 3, or 5. Most universities seem to try to do some of all 3.
I admit that the education subsidies puts some limits on how high they can raise tuition. However, this would cause them to reject students, which is the whole reason why they need more money in the first place.
If you don't consider that the universities goals are to educate everyone who is able and inclined, than getting rid of federal subsidies would be a good thing. Most people disagree with this.
JM
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