STUNNING surprise to Hillary and other Progressives: Federal Student Aid Drives Up Tuition

This is in another universe from Progressives who cannot understand how this could happen!

STUNNING surprise to Hillary and other Progressives:

Federal Student Aid Drives Up Tuition

Too often, the progressive response to an ever-increasing student loan burden on today’s young graduates is to make federal student aid easier to use, usually in the form of lower interest rates or more debt forgiveness. A new report from the Federal Reserve Bank of New York, by economists David Lucca, Taylor Nadauld, and Karen Shen, disputes this prescription. Rather than lightening the load on students, federal student aid programs actually increase tuition at America’s colleges and universities.

The paper concludes that each additional dollar of Pell Grants, awards given to low-income students to help them pay for college, increases tuition by 55 cents. Each dollar of Direct Subsidized Loans, or need-based loans for which the government pays the interest while students are in school, increases tuition by 65 cents. These effects vary by type of school, with the largest tuition increases found in private four-year institutions.

http://economics21.org/commentary/federal-student-loans-raise-tuition-07-10-2015

Complain or offer a better way? It might also be considered progressive but I think for the better.

I'd like to see the education system overhauled to have core/classical education completed by 8th grade and then high school be technical for those that test with skills where they could be assigned work in apprenticeships. Those who have aptitude for science/math/engineering, etc would take advanced studies beyond the classical core. Graduation would bring students into work force or into the university system.

Job growth and better use of school funding at the county levels from the state.

Grades 1-12 are not producing a work force worthy of wages that are being asked by fast food workers. Train them in the method described above and pay them for their experience.

You'd see a return of small businesses like never before. Protected from being swallowed up by corporations through state and local initiatives.

It's not a new plan. But it would be new to the US.

Job growth and better use of school funding at the county levels from the state.

Bingo.  I believe it is not the cost of education, but the curriculum.  It needs to match up with demand.  My father had an apprenticeship at 16 in Germany which took him to a great job in England in the early twenties.  He eventually had a great opportunity in America in 1925 and later built a business from his knowledge he learned in his apprenticeships.   High School curriculum should have money going for vocational studies and work after school.  I started working at 15 with a work permit, and the school bus after school dropped me off at my jobs at auto dealerships all through high school.  I paid my first two years of college from my earnings from working since I was 15.  We cannot all be doctors, lawyers, accountants, and engineers.  In Germany they still honor vocational skills.  America excelled because of the same.

There are many "schools" in the US today...including Trump University, and quite a few others, who don't measure up to the standards that a state university would meet. Many of these...often "Christian" schools receive funding through federal student aid. In the case of Trump, he's being sued for offering a substandard curriculum.