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Estefani Trevino

Lowering the cost of college with market
forces
● “Pay it forward” meaning students will pay after the year that they
graduate as a percentage of their annual income
● Having free community college for high school graduates
Why is college expensive
● Consequence of the Great Recession
● Public Funding for higher education has been cut
● Colleges and universities know that they can raise their prices
and that students will still attend – in part because the
government is handing them money.
What is demand & supply of college
● It really just depends on how many students get admitted
● So the number of students attending/will attend would be the
supply
● If more students attend the demand will go up since everyone
would want to attend
What role does subsidized loans play in the prices of
college?
● They are student loans
● The U.S. Department of Education pays
the interest on a Direct Subsidized Loan
● Direct Unsubsidized Loans are available
to undergraduate and graduate students;
there is no requirement to demonstrate
financial need.
5 reasons why the government should not subsidize
college education more:
● There is no link between higher education
subsidies and economic growth, and none
between college and job creations.
● More subsidies equal more waste
● When comparing earning power between college
graduates and non-graduates, correlation is not
causation, and the actual cost of college matters.
● Ensuring that everyone has college schooling
would not enhance the labor market- it would
dilute a university degree.
● Higher education may be the next bubble to
Work cited
Wong, Queenie. "Legislators Consider How to Lower College
Costs."Statesman Journal. N.p., 18 Sept. 2014. Web. 12 Oct. 2016

Campos, Paul F. "The Real Reason College Tuition Costs So Much." The
New York Times. The New York Times, 04 Apr. 2015. Web. 12 Oct. 2016..

Li, Helen. "The Rising Cost of Higher Education: A Supply & Demand
Analysis." (n.d.): n. pag. Print.

"Subsidized and Unsubsidized Loans." Federal Student Aid. N.p., 30
June 2016. Web. 12 Oct. 2016.

By Jarrett Skorup | Feb. 13, 2013 | Follow Jarrett Skorup on Twitter.
"Five Reasons The Government Shouldn't Subsidize Higher Education."
Five Reasons The State Shouldn't Subsidize Higher Education
[Michigan Capitol Confidential]. N.p., n.d. Web. 12 Oct. 2016.