Rising Cost Of College Tuition And The Effectiveness Of Government Financial Aid

The Rising Cost of Education covers the skyrocketing tuition fees for higher education, explaining just how expensive tuition is as well as what causes its increase and the risks it poses for Americans. Aligned to Common Core Standards and correlated to state standards. Essential Library is an imprint of Abdo Publishing, a division of ABDO.

A college education has been the key to higher real wages and living standards. But as college enrollment has increased, so has the difficulty in paying for higher education.

College tuition has risen more rapidly than the overall inflation rate for much of the past century. To explain rising college cost, the authors place the higher education industry firmly within the larger economic history of the United States.

As Congress debates the reauthorization of the basic federal student aid legislation, and as governors and state legislators cope with increasingly severe budgetary problems of their own, the issues of preserving college opportunity and sharing the burden of college costs are particularly critical and timely. This book assesses the role of government subsidies for higher education—especially but not exclusively federal student aid—in keeping college affordable for Americans of all economic and social backgrounds. The authors examine the effects of student aid policies of the last twenty years. They address several vital questions, including: Has federal student aid encouraged the enrollment and broadened the educational choices of disadvantaged students? Has it made higher education institutions more secure and educationally more effective—or has it raised costs and prices as schools try to capture additional aid? Has federal student aid made the distribution of higher education's benefits, and the sharing of costs, fairer? And what are the likely trends in patterns of college affordability? Drawing on their analysis, the authors highlight some of the principal dimensions of policy choice on which the debate has focused, as well as some that have been relatively neglected. Building upon their conclusion that student aid works, they propose reforms that would bolster the role of income-tested aid in the overall student financing picture. McPherson and Schapiro recommend a number of incremental reforms that could improve the effectiveness of existing federal aid programs and present a proposal to replace a substantial fraction of state-operating subsidies to colleges and universities with expanded federal aid.

As a consequence of the federal "No Child Left Behind" (NCLB) law, there is tremendous pressure on school principals, teachers, school superintendents, district staff, state departments of education and governors to maximize the increase in student achievement that is obtained with every dollar of expenditure. Currently, teachers are forced to rely on extremely inefficient approaches that take enormous amounts of time, both during the school day and throughout the K-12 learning years. This is experienced in terms of the reduced time that is available to teach subjects other than math and reading, as schools resort to double periods of math, double periods of reading, and enormous amounts of remedial instruction that directly reduce the time available for other subjects including science, art, and music. In contrast, this book suggests that student achievement may be increased in a way that is not only cost-effective in dollar terms, but efficient in the sense that it does not rely on unusual investments in the time required to obtain results. The book draws upon a wealth of cost-effectiveness data to dispel common notions about "what works" in addressing the achievement gap: increased expenditure per pupil, charter schools, voucher programs, increased educational accountability, class size reduction, comprehensive school reform, increased teacher salaries, more selective teacher recruitment, the use of "value-added" methods to measure and reward teacher performance, the use of National Board teacher certification to identify high-performing teachers, and a host of other approaches.

America’s colleges and universities are the best in the world. They are also the most expensive. Tuition has risen faster than the rate of inflation for the past thirty years. There is no indication that this trend will abate. Ronald G. Ehrenberg explores the causes of this tuition inflation, drawing on his many years as a teacher and researcher of the economics of higher education and as a senior administrator at Cornell University. Using incidents and examples from his own experience, he discusses a wide range of topics including endowment policies, admissions and financial aid policies, the funding of research, tenure and the end of mandatory retirement, information technology, libraries and distance learning, student housing, and intercollegiate athletics. He shows that colleges and universities, having multiple, relatively independent constituencies, suffer from ineffective central control of their costs. And in a fascinating analysis of their response to the ratings published by magazines such as U.S. News & World Report, he shows how they engage in a dysfunctional competition for students. In the short run, colleges and universities have little need to worry about rising tuitions, since the number of qualified students applying for entrance is rising even faster. But in the long run, it is not at all clear that the increases can be sustained. Ehrenberg concludes by proposing a set of policies to slow the institutions’ rising tuitions without damaging their quality.