High prices plus liberal aid is a great racket. The combination lets a college look both extra valuable ("such high tuition!") and extra generous ("so much aid!

High prices plus liberal aid is a great racket. The combination lets a college look both extra valuable ("such high tuition!") and extra generous ("so much aid!"). All the while, they're actually engaging in profit-maximizing price-discrimination and government-subsidy-farming. More on how this may not be sustainable for higher education here: http://chronicle.com/blogs/conversation/2012/11/26/the-net-price-myth/ http://chronicle.com/blogs/conversation/2012/11/26/the-net-p...