View Poll Results: Do Government education grants raise the cost of college?

Voters
5. You may not vote on this poll
  • Yes

    5 100.00%
  • No

    0 0%
  • Other

    0 0%
Results 1 to 4 of 4

Thread: Do Government education grants raise the cost of college?

  1. #1
    Advisor
    Join Date
    Apr 2010
    Last Seen
    01-19-12 @ 03:54 PM
    Gender
    Lean
    Libertarian
    Posts
    358

    Do Government education grants raise the cost of college?

    Do Government education grants raise the cost of college?

    Yes or no?


    I've read an interesting argument against healthcare. They explained how the HC bill will raise costs of healthcare by comparing it to how Education Grants raise costs of College.


    The argument is that colleges know that most students qualify for Grants. Prior to the grant money, which we'll say holds a value of $Y, colleges would charge $X. And they would fill their colleges. But because students started getting grants, colleges could then afford to charge $X (what they previously charged) + $Y (the extra amount the government is willing to pay for). And they could increase the total revenue signficantly because $Y increased at a rate that equals the change in the cost of college. And so college tuition rates are increasing at 6%, $Y is increasing at a rate to keep up. Colleges have incentive to raise costs without decreasing student population

    The problems are of course if you're one of the people who don't qualify for $Y. In which case the cost to you significantly rises because now you're paying $X + $Y out of pocket without receiving $Y. So the number of people going to college remain the same. The upper middle class really get screwed because they either can't or can barely afford the college bill, but make too much to get grants. The super rich pay more, but are at least able to afford it (though it's still debatable as to whether or not this is 'fair'). And so in the end some poorer people get to go to college at the cost of some upper middle class not going to college, all the while the gov't has to spend money (paid for by taxes which are paid moreso by the wealthy who then in turn have to pay more for college and not get the grants or not go to college since costs rose so much) and the colleges make more money too.


    This is the reasoning, if I explained it well enough for you. So I ask you two questions - is this reasoning sound? Do Government education grants raise the cost of college? and is it likely that the same model argument could be made for healthcare? why or why not?

  2. #2
    Enemy Combatant
    Kandahar's Avatar
    Join Date
    Jul 2005
    Location
    Washington, DC
    Last Seen
    10-15-13 @ 08:47 PM
    Gender
    Lean
    Liberal
    Posts
    20,688

    Re: Do Government education grants raise the cost of college?

    Yes, education grants raise the overall cost, but not as much as indicated here. The cost increases a lesser amount than the grant provides. Those grants are most definitely a net plus for students. As a result, anyone in this country who wants to go to college can afford to do so.
    Are you coming to bed?
    I can't. This is important.
    What?
    Someone is WRONG on the internet! -XKCD

  3. #3
    Traditionalist
    phattonez's Avatar
    Join Date
    Jun 2009
    Location
    Los Angeles, CA
    Last Seen
    12-05-17 @ 03:45 PM
    Gender
    Lean
    Other
    Posts
    20,072

    Re: Do Government education grants raise the cost of college?

    Yes. When you raise demand you raise price. By how much, though, no one knows.

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "True law is right reason in agreement with nature . . . Whoever is disobedient is fleeing from himself and denying his human nature [and] will suffer the worst penalties . . ." - Cicero

  4. #4
    Goddess of Bacon

    Join Date
    Feb 2007
    Location
    Charlottesville, VA
    Last Seen
    05-28-12 @ 09:35 PM
    Gender
    Lean
    Undisclosed
    Posts
    13,988

    Re: Do Government education grants raise the cost of college?

    As a good general rule of thumb: If the govt is involved, costs go up.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •