Federal Student Aid Programs - University Of The Arts: Fill & Download for Free

Yes - but simply slamming the taxpayer with the bill doesn't address the fundamental problemThe acceleration in tuition inflation is largely due to federally subsidized loans. Federal Reserve of New York study showing that there is a significant pass-through effect with federal student aid: Credit Supply and the Rise in College Tuition: Evidence from the Expansion in Federal Student Aid Programs"We find that institutions more exposed to changes in the subsidized federalloan program increased their tuition disproportionately around these policy changes, with a sizable pass-through effect on tuition of about 65 percent. We also find that Pell Grant aid and the unsubsidized federal loan program have pass-through effects on tuition, although these are economically and statistically not as strong."This is pretty much the same dynamic we saw in the housing market. Easy credit leads to more demand and the opportunity for schools to markup tuition.Half of college grads from four-year programs are working jobs which don’t require a four-year degree: http://mckinseyonsociety.com/dow...This isn’t definitive proof of the stated statistic, but it definitely underscores a trend in higher education. Too many students choose to pay 2-3x in-state costs to study at mediocre private universities and/or go out-of-state, and take out student loans to study a historically overvalued degree, live in high-end student housing, use state-of-the-art recreational facilities,and enjoy 4-6 years of the college social experience.The problem with Sanders’ free-university proposal is that he isn’t addressing any of these fundamental issues – he simply wants to throw money at the problem. He doesn’t look at the historical value of a degree, the student’s employment prospects,whether the student actually needs the money (we’ll be paying for a lot of rich kids to go to school), SAT scores (schools do this, but admissions standards for an art history or business communications degree at your average public university are quite low), etc. etc.The bottom line is that in-state university tuition + fees is, on average, $9,147/year,and community colleges have an average tuition of $3,347/year. Higher education is not prohibitively expensive in the US – private school and going out of state is. And these numbers have been inflated by the effects of federal programs. Canada and South Korea (top 2 in youth tertiary education attainment) have, respectively, slightly lower and similar average tuition rates for residents. UK tuition is 9k GBP/year – much more expensive than public education in the US (not to mention significantly less wealthy citizens, so relative cost of university is higher)

Because free college isn't the right answer - it's a ham-fisted approach to addressing a complex issueTo quote another one of my posts:The acceleration in tuition inflation is largely due to federally subsidized loans. Federal Reserve of New York study showing that there is a significant pass-through effect with federal student aid: Credit Supply and the Rise in College Tuition: Evidence from the Expansion in Federal Student Aid Programs"We find that institutions more exposed to changes in the subsidized federalloan program increased their tuition disproportionately around these policy changes, with a sizable pass-through effect on tuition of about 65 percent. We also find that Pell Grant aid and the unsubsidized federal loan program have pass-through effects on tuition, although these are economically and statistically not as strong."This is pretty much the same dynamic we saw in the housing market. Easy credit leads to more demand and the opportunity for schools to markup tuition.Half of college grads from four-year programs are working jobs which don’t require a four-year degree: http://mckinseyonsociety.com/dow...This isn’t definitive proof of the stated statistic, but it definitely underscores a trend in higher education. Too many students choose to pay 2-3x in-state costs to study at mediocre private universities and/or go out-of-state, and take out student loans to study a historically overvalued degree, live in high-end student housing, use state-of-the-art recreational facilities,and enjoy 4-6 years of the college social experienceThe problem with making university free is that it doesn’t address any of these fundamental issues – it’s simply throwing money at the problem. Sanders’ free-university proposal doesn’t look at the historical value of a degree, the student’s employment prospects,whether the student actually needs the money (we’ll be paying for a lot of upper-middle-class and rich kids to go to school), SAT scores (schools do this, but admissions standards for an art history or business communications degree at your average public university are quite low), etc. etc.The bottom line is that in-state university tuition + fees is, on average,$9,147/year, and community colleges have an average tuition of $3,347/year (and this is before factoring in discounts for students from low-income backgrounds. Higher education is not prohibitively expensive in the US – private school and going out of state is. And these numbers have been inflated by the effects of federal programs. Canada and South Korea (top 2 in youth tertiary education attainment) have, respectively, slightly lower and similar average tuition rates for residents. UK tuition is 9k GBP/year – much more expensive than public education in the US (not to mention significantly less wealthy citizens, so relative cost of university is higher). We need to get out of the higher education market, and can look at possibly subsidizing education for students from low-income families studying marketable degrees with a history and consistent display of academic achievement

Misdirected and confusing government support.The federal government supports students with Pell Grants and subsidized and unsubsidized student loans. It turns out that those grants and loans are part of the reason why tuition has gone up so much.The New York Fed study showedthat the increased availability of subsidized student loans and Pell Grants accounted for 55% to 65% of the increase in tuition costs, as measured by their sticker price. The greater availability of unsubsidized loans had a lower 30% pass-through effect.[1]If you receive a Pell grant of 5,000$, you really received less than half that. Most of the aid was captured by the school, raising the tuition because of the aid.Bill Bennett, the Secretary of Education under Reagan, actually recognized the trend of tuition spikes back in 1987. [2]In a more recent Times article, Bennett explained the issue again:I postulated that the availability of a large amount of federal money was driving up tuition, and in the long run making it more difficult for poor students to go. It’s common sense. The more you subsidize something, the more you get of it. And almost every college chancellor or president I met felt that their obligation was to expand and create more departments, more centers and more graduate programs. In 1970, the bottom quartile economically constituted 12 percent of the student population. In 2010, the bottom quartile constituted 7.3 percent. Poor kids look at the tuition — $40,000, $50,000 a year — and say, “Forget it.”[3]Also, the way Federal aid (Pell Grant through FAFSA) is given out is somewhat confusing. For example, it doesn’t take into account the value of your primary residence or your small business.Forbes wrote a guide to paying for college and they described a parent who owned a house worth well over $1 million, drove nice cars, and had a daughter attending MIT, receiving financial aid.They were self-employed, owning and managing a portfolio of commercial real estate and had a lot of control over the numbers that show up on the aid applications. You can withdraw less money from your business while your kid is attending the school and maximize financial aid.It is also worth keeping in mind that the vast majority of public schools and many private schools use FAFSA numbers to determine how much aid they will give to students.Not only that, state governments often award their aid based on the FAFSA as well. California has Cal Grants and State University Grants and New York has TAP.California State University system also has EOP which provides additional benefits to students.Last but not least, as many other answers pointed out, very few people pay a sticker price, especially for expensive private schools with their own endowments and financial aid departments.When you make the system this complicated, it gives advantage to people with resources like in the abovementioned example who can understand the system.A resourceful middle-class family is much more likely to get their child into the best school they can afford and maximize the aid than a poor family.Booker T. WashingtonLast Summer I read (technically listened to) Booker T. Washington’s autobiography, Up from Slavery, where he discusses at length the beginnings of Tuskegee University.What struck me was his insistence to teach industry to his students. By industry he meant bricklaying, farming, carpentry and all the other marketable skills which blacks could practice then.we wanted to give them such a practical knowledge of some one industry, together with the spirit of industry, thrift, and economy, that they would be sure of knowing how to make a living after they had left us. We wanted to teach them to study actual things instead of mere books alone.His advice is more relevant now than ever and applies to the American student body as a whole.Here are the most common majors in American universities today:Business - 364,000Health professions and related programs - 216,000Social sciences and history - 167,000Psychology - 118,000Biological and biomedical sciences - 110,000Engineering - 98,000Visual and performing arts - 96,000Education - 92,000Guess which ones are not marketable skills?Social sciences, psychology, and fine arts don’t give any marketable skills whatsoever. None, zero! Even business and education majors are iffy depending on the specifics.Yet people are still majoring in them, taking out student loans to attend expensive yet in some cases not even prestigious universities.5 Rules for college as an investmentDon’t go to a private school without a full scholarship unless it’s Ivy League, Stanford, Caltech, MIT or has a strong program in your major (communications at Ithaca, business and film at both USC and NYU).Don’t go to an out-of-state public school unless it’s UCLA or Georgia Tech caliber.Do go to a city college and then transfer if it offers substantial savings. Californian city colleges do that. They cost less than $1,300 as opposed to at least $7,500 for universities.Maximize your aid by learning about all the Federal, State and your particular school financial aid programs. The Forbes e-book is a great resource.Look up career prospects for your major. If they don’t teach you a marketable skill, don’t do it!If you do all of that, you’ll be fine!Washington, Booker T.. Up from Slavery (Dover Thrift Editions) (p. 48). Dover Publications. Kindle Edition.Eum, Jennifer. The Forbes Guide To Paying For College . Forbes Media. Kindle Edition.Footnotes[1] Student Aid May Be to Blame for Sky-High College Tuition: NY Fed | ThinkAdvisor[2] Our Greedy Colleges[3] Catching Up on the Bennett Hypothesis