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I read an article where they did a supply/demand analysis of tuitions, and found that tuitions might simply be responding to demand. Obviously, there are a lot
by MrTonyD 8y ago
I read an article where they did a supply/demand analysis of tuitions, and found that tuitions might simply be responding to demand. Obviously, there are a lot of factors to consider. But they looked at broader economics for demand (jobs, unemployment) and existing college sizes (instructor and class volume) and found that pricing were correlated with supply/demand changes, with loans playing only a minor role in education costs.
It wasn't definitive, but now I view the "loans raise tuitions" crowd as holding an overly simplistic ideological position.
- deleted 8y ago[deleted]
- fbonetti 8y agoThat demand was artificially created by the government disallowing the discharge of student loan debt through bankruptcy.
- MrTonyD 8y agoUmmmm...no, at least not according to the study I read. The study identified lots of reasons for demand. Mostly, it was the economic situation. When jobs get scarce, or people get fired, they often go back to school (or stay in school). That increases demand. And changes in population between areas also increases demand in particular regions. Demand also varies with percent of population at an age where they go to school. There was more to the study - but I read it a couple of years ago and never tried to memorize the details. I'm trying to be generous in my response, and assume that you aren't simply trying to justify a philosophical position.