Magic! Colleges Stop Exorbitant Price Increases After Congress Caps Student Loans

[goldenequity]

Colleges Stop Exorbitant Price Increases After Congress Caps Student Loans (http://dailycaller.com/2017/07/24/shocker-colleges-stop-exorbitant-price-increases-after-congress-caps-student-loans/)

Subsidies cause the price of any good or service to rise. College administrators continually raised prices year after year — and decade after decade — precisely because the federal government generously subsidized those price increases with more and more student loans. Administrators responded rationally to the government’s allowance of bigger college loans by raising prices for college.

Now that the federal government has kept maximum borrowing rates the same for nearly a decade, college administrators have responded to the new economic reality by limiting price increases.



http://cs8.pikabu.ru/images/big_size_comm_an/2016-05_1/146236638013913887.gif

[Swordsmyth]

End them.

[Zippyjuan]

The cap was frozen almost ten years ago- 2008. Article also notes:


Other factors causing colleges to rein in their prices are societal and demographic.

For example, the United States now has 33 percent more schools offering two-year and four-year degrees than it had in 1990 but college enrollment across the nation has decreased over 4 percent from its 2010 pinnacle.

While a strong economy is causing fewer older people to seek new skills, a far bigger reason for the decline — and for a continuing decline in future years — is that there are fewer college-aged students because of declining birth rates.

The trend of fewer classroom bodies will almost certainly persist even if the economy remains perpetually robust because of the low birth rates. The Western Interstate Commission for Higher Education projects that high school graduation rates will remain stagnant until at least 2023, according to the Journal.

Also, the higher education group expects the number of white high school graduates — the demographic which tends to attend college the most — to decrease.

The decline in student enrollment is causing some schools to shut down, especially for-profit colleges and universities.

Private colleges and universities, which tend to be more expensive than their public (and publicly-funded) peers, are also suffering because of student enrollment declines. Many public community colleges and some public universities have also been hit hard by enrollment declines.

Also, the Journal notes, while colleges and universities have stopped increasing prices so much, they are still increasing prices. And, because tuition has become so expensive in the last 30 years, a small percentage increase can still be a decent chunk of cash.

At a fancypants private school like Wesleyan University where a single year of tuition, fees and room and board costs $66,970, a 1.9 percent increase would cost students and parents about $1,270 each year.

[goldenequity]

but... but.. correlation equals causation!!!
hahaha..
zip I can always count on you. :D

[angelatc]

but... but.. correlation equals causation!!!
hahaha..
zip I can always count on you. :D

Notice he didn't provide a link..

[goldenequity]

Notice he didn't provide a link..

yeah zip what's up w/ that!!!!!
(jus kiddn.. the quotes r from the OP article)

[Zippyjuan]

Notice he didn't provide a link..

The link was provided in the OP. It is the same article.


Article also notes: