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"How did this happen?" — because the market will bear it. High sticker price + financial aid for 65% of students just makes it easier for a college to price dis
by peter_l_downs 3y ago
"How did this happen?" — because the market will bear it. High sticker price + financial aid for 65% of students just makes it easier for a college to price discriminate, which is overall a good thing. And as the article points out, most students don't pay anywhere near as much as a Vanderbilt full tuition, so in a sense it really doesn't matter. The article does a good job of explaining this.
- complianceowl 3y agoYou can't say the market is bearing it when the college market is being sustained by government-backed funding via student loans. If the market were really bearing it, government's involvement would be minimal to non-existent.
- peter_l_downs 3y agoThe people paying $100k are not doing so via government-backed student loans.
- Supermancho 3y agoI don't understand this. When Harvard or CalTech says that anyone admitted will not be turned away due to financial hardship, it's because the loans are issued with a qualification based on their admission. 100k or any other price, the current financing structure remains the same.
- gnicholas 3y agoI believe Harvard also guarantees some students (from families below a certain income level) don't need to take out loans.
- bfrink 3y agoAt Caltech, students from families making $90K or below, will receive a no loan financial aid package (package will consist of grants and work-study).[0] [0] https://www.admissions.caltech.edu/afford https://www.admissions.caltech.edu/afford