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Reply to "Trump ceasing federal aid for college"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]That will probably lower college costs. Amazing how the cost of college has skyrocketed once the government got in on the loan business. I’d consider this a win for future students who won’t be saddled with student loan debt. [/quote] They won’t have the means to pay for college either way. It only benefits the UMC who have additional disposable income to plow into 529 plans. It does not benefit students who require grants and loans because they are without family or parental financial support. [/quote] Without all those students using grants and loans, colleges will have to lower prices to keep that money flowing in. The Ivies may continue to only be for the rich, but I could see state schools cut tuition to have higher enrollment. VA Tech isn’t just going to only have 10,000 students attend who can afford full pay. Better to lower tuition to ensure full enrollment and a higher bottom line. [/quote] This is not wrong. Subsidize something and you get more consumption of the thing subsidized, basic market forces at work. If universities want more students, they have to price their services at a level where the value proposition is there. At present, federal educational subsidies allow universities to price themselves higher than they otherwise would be able to. There is an argument to be made that at least some of the revenues due to subsidies are spent on unimportant bloat in administration or other university functions which don't directly benefit students, at least in the minds of many people. There surely is a place for financial aid for some students, but the current system encourages students to choose universities they can't afford instead of making more pragmatic choices, and allows universities to charge higher prices than the free market would permit, introducing economic inefficiency. [/quote] All of this is true. And Trumps solution is to take a wrecking ball to the entire system. The republican solution is to vilify professors and discourage American Students from pursuing higher education. Is this what we voted for? [/quote]
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