Thursday, December 15, 2011

the subtle cost to society of high tuition

http://www.sciencedaily.com/releases/2011/12/111214102926.htm

D - this is a USA study. But the implications of deregulated tuition for us are there.

The researchers, who reported their findings in the current issue of the American Economic Review, said a shift occurred in the 1990s as more low-income students began to struggle to access credit to pay for a college. During the 1990s, youths from high-income families were 16 percent more likely to attend college than youths from low-income families.

According to Monge-Naranjo, constraints on financial aid could have far-reaching economic impacts. When poor but intelligent workers are unable to earn a college degree, their career choices are restricted, Monge-Naranjo said. That could mean less qualified and less productive workers will attain those positions.

"It's a matter of economic efficiency," said Monge-Naranjo. "Are we choosing the best individuals for the job, or just the individual whose parents are wealthy? In the long-term that may have an effect on the economy, although it may take a couple of generations to find out and, even then, perhaps be hard to quantify."

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D - the Republican "Texas Miracle" ignores this creeping long-term cost of slashing funding.

D - if student loans don't cover the actual cost of tuition (and sundry associated costs), then if private credit cannot be accessed, and the job market is not reliable, highly talented poor students will opt out of more expensive school options. Don't get me wrong- a trade apprenticeship or college diploma can be a highly sensible career choice.




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