Tuition Bubble?
The Center for College Affordability and Productivity issued an interesting report asking if the higher education market shared similarities with the housing market. See “A Tuition Bubble?” An excerpt:
“Most government subsidies lead to lower prices for consumers, but this study claims that this is not the case for higher education. The ultimate reason is that the nature of the subsidies and the peculiar characteristics of the market for higher education encourage schools to raise their prices when the students’ ability to pay increases.”
There are some useful graphs reflect student debt and tuition increases and a nice snarky remark about how the government supports school price discrimination by making the FAFSA so available.