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Ironically, the severity of the student debt crisis would be reduced significantly if we made need-based scholarships illegal
by anchpop 7y ago
Ironically, the severity of the student debt crisis would be reduced significantly if we made need-based scholarships illegal
- tyre 7y agoCould you expand on this? On first glance it seems like only the well-off would go to college. I won’t respond further unless I’m sure I understand your proposal
- leplen 7y agoNeed based scholarships allow universities to have nearly perfect price discrimination. This allows them to charge different prices to different consumers and extract the maximum amount each consumer is willing/able to pay. If they had to charge everyone the same price, that price would be considerably lower than the sticker prices now.
- Paul-ish 7y agoAre there studies on this, or is this just what we expect from economic theory?
- apexalpha 7y agoJust think of it like this. If Harvard would charge $2000 in tuition each year but they raise the price $1000 for every $10k your parents make. Sounds ridiculous right? So the make the price $30.000 and give discounts if your parents don't make $100.000 instead.
- foogazi 7y agoSchools would not close but adjust their spending and stop building luxury campuses Education loans just bring more money into the system and inflate tuition, just like how 0% down mortgages inflate real estate prices
- GoodJokes 7y agoIronically, the student debt crisis would be eliminated if we made college free and eliminated said debt. Soak the rich 2020