Further illustrating the problem of “free” college, tuition could actually increase under Hillary Clinton’s plan, experts tell The New York Times.
As the federal government has expanded tuition subsidies, college affordability hasn’t increased, but the cost of college has over the past decade as colleges respond by raising their prices to capture more of the subsidies.
Professor Taylor Nadauld of Brigham Young University, who co-authored a study showing that colleges pocketed up to 60 cents for every $1 increase in subsidies, told The Times that “the basic economics are straightforward. Colleges have the opportunity to extract money from the federal government, and they do it.”
While the Clinton campaign said it would hold colleges “accountable for reining in costs,” such assurances have not been backed up with further detail.
Increasing college costs from government meddling has been a concern since 1987. Called the “Bennett hypothesis,” it alleges that, because the government provides more aid, more student loans and grants lead to higher prices.
Public institution are also spending more and do so to attract students. “Schools are under tremendous competitive pressure to raise as much revenue as possible from every possible source,” Andrew Gillen, an education analyst, said.
Hillary’s plan is meant to help families making an annual income of $125,000 with children attending public institutions. Evidence suggests private colleges and universities are raising costs even more, and that the impact is also larger when it comes to higher-income families receiving aid.
With the government being expected to pay for the college education of so many students, colleges could continue to increase their costs without an end in sight. It could spell a problem for those whose education is not covered because of the institution they attend or their income. Certainly, it’s an issue for taxpayers.
If the Democrats got their way, millennials would be burdened with more college debt.
Libertarian candidate Gary Johnson has criticized the plan as “young people have been sold a bill of goods.” Instead, he suggests that if there was no guaranteed government aid, the cost would not be what it is today. College affordability plans from the Trump campaign also involve getting the government out and holding colleges more accountable.
