Its all pretty obvious.

Federal government establishes federally funded financial aid to help
those in need.
State governments cut funding to universities, so universities are
forced to raise tuition
and get more of their finances from the federal financial aid programs.

Lets say a ficticious state, say State A, funded its university system
50% so that 50% of all costs were
paid by tuition (we will ignore donations).  Every student who gets a
full ride from feds has 50% of costs
paid by state and 50% of costs paid by fed financial aid.

However, if a state reduces its contribution to the costs of running
that university to 25%, the cost of
attendance rises as every school raises tuition.  Then, more students
in that state become eligible for
financial aid because of the higher cost of attendance.  Now, students
on full rides get only 25% of their
education costs from state, but 75% from the feds.  Essentially, State
A has shifted the burden of funding
higher education to the feds while not losing any return on the total
investment in higher education.  Then the
state can throw money elsewhere or issue tax breaks for companies to
come into the state.

I am pretty sure this conspiracy theory would work, and if it does, it
is likely why we see escalating tuition.
Its not the schools raising tuition, its the state governments
lowering investment leading to higher tuition to
cover costs which get more and more shifted to federal financial aid
programs.  Anyone who doesn't get
financial aid just fronts the whole bill.

As for the condition of buildings, its a long known fact that it is
easier as a government entity to build a new building than it is to
repair an old one because of the way funding mechanisms work in
states.  So, if you have a choice between building a new building and
refurbishing an old one, as an institution you are more likely to
approach building a new one even if the costs are way higher.  No
building will last forever, no matter how well you take care of it.

If politicians really had our interest at heart, none of this would be
happening.
Instead, they are busy capitalizing on loopholes in insider trading
law to make billions for their own pocketbooks.

:)

On Tue, Dec 27, 2011 at 6:29 PM, Paul Cherubini <[email protected]> wrote:
>> The University of California at Berkeley subsists now in
>> perpetual austerity. Star faculty take mandatory furloughs.
>>
>> Classes grow perceptibly larger each year. Roofs leak;
>> e-mail crashes. One employee mows the entire campus.
>> Wastebaskets are emptied once a week. Some
>> professors lack telephones.
>
>
> If all of the above is true, then can someone please
> explain why for 20+ years the annual increase in the
> cost of college tuition has far outpaced the consumer
> price index, heath care, energy costs, etc.
>
> http://www.nas.org/polArticles.cfm?doc_id=1450
> http://tinyurl.com/6xq6hv
>
> Paul Cherubini
> El Dorado, Calif.



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