scholarly journals Does Federal Student Aid Raise Tuition? New Evidence on For-Profit Colleges

2014 ◽  
Vol 6 (4) ◽  
pp. 174-206 ◽  
Author(s):  
Stephanie Riegg Cellini ◽  
Claudia Goldin
Keyword(s):  
Higher Education ◽  
Administrative Data ◽  
Education Sector ◽  
Federal Aid ◽  
Student Aid ◽  
Certificate Programs ◽  
For Profit ◽  
Federal Subsidies ◽  
Aid Programs ◽  
New Evidence

We provide the first comprehensive estimates of the size of the for-profit higher education sector and evaluate whether for-profits increase tuition in response to federal subsidies. By using state administrative data we include institutions that do not participate in federal student aid programs and are missed in official counts. Including these institutions doubles the number of for-profits and increases students by one-third compared with official counts. Aid-eligible institutions charge tuition for sub-baccalaureate (mainly certificate) programs that is about 78 percent higher than that charged by comparable programs in nonparticipating institutions, lending some credence to the “Bennett hypothesis” of federal aid capture. (JEL H52, I22, I23, I28)

scholarly journals Student Loans as a Pressure on U.S. Higher Education

2016 ◽  
Author(s):  
Elizabeth Popp Berman ◽  
Abby Stivers
Keyword(s):  
Higher Education ◽  
Financial Aid ◽  
Organization Theory ◽  
Management Practices ◽  
Student Loans ◽  
The United States ◽  
State Funding ◽  
Student Aid ◽  
For Profit ◽  
Financial Aid Policy

The United States has been at the forefront of a global shift away from direct state funding of higher education and toward student loans, and student debt has become an issue of growing social concern. Why did student loans expand so much in the U.S. in the 1990s and 2000s? And how does organization theory suggest their expansion, and the growth of federal student aid more generally, might affect higher education as a field? In the 1960s and 70s, policy actors worked to solve what was then a central problem around student loans: banks' disinterest in lending to students. They did this so well that by 1990, a new field of financial aid policy emerged, in which all major actors had an interest in expanding loans. This, along with a favorable environment outside the field, set the stage for two decades of rapid growth. Organization theory suggests two likely consequences of this expansion of federal student loans and financial aid more generally. First, while (public) colleges have become less dependent on state governments and more dependent on tuition, the expansion of aid means colleges are simultaneously becoming more dependent on the federal government, which should make them more susceptible to federal demands for accountability. Second, the expansion of federal student aid should encourage the spread of forms and practices grounded in a logic focused on students' financial value to the organization, such as publicly traded for-profit colleges and enrollment management practices.

scholarly journals The For-Profit Postsecondary School Sector: Nimble Critters or Agile Predators?

2012 ◽  
Vol 26 (1) ◽  
pp. 139-164 ◽  
Author(s):  
David J Deming ◽  
Claudia Goldin ◽  
Lawrence F Katz
Keyword(s):  
Higher Education ◽  
Education Sector ◽  
First Year ◽  
State Governments ◽  
Older Students ◽  
Non Profit ◽  
For Profit ◽  
Default Rates ◽  
First Time ◽  
Recent Cohort

Private for-profit institutions have been the fastest-growing part of the U.S. higher education sector. For-profit enrollment increased from 0.2 percent to 9.1 percent of total enrollment in degree-granting schools from 1970 to 2009, and for-profit institutions account for the majority of enrollments in non-degree-granting postsecondary schools. We describe the schools, students, and programs in the for-profit higher education sector, its phenomenal recent growth, and its relationship to the federal and state governments. Using the 2004 to 2009 Beginning Postsecondary Students (BPS) longitudinal survey, we assess outcomes of a recent cohort of first-time undergraduates who attended for-profits relative to comparable students who attended community colleges or other public or private non-profit institutions. We find that relative to these other institutions, for-profits educate a larger fraction of minority, disadvantaged, and older students, and they have greater success at retaining students in their first year and getting them to complete short programs at the certificate and AA levels. But we also find that for-profit students end up with higher unemployment and “idleness” rates and lower earnings six years after entering programs than do comparable students from other schools and that, not surprisingly, they have far greater default rates on their loans.

Attendance Spillovers between Public and For-Profit Colleges: Evidence from Statewide Variation in Appropriations for Higher Education

2020 ◽  
Vol 15 (3) ◽  
pp. 428-456
Author(s):  
Sarena Goodman ◽  
Alice Henriques Volz
Keyword(s):  
Higher Education ◽  
Public Sector ◽  
Colleges And Universities ◽  
Public Colleges ◽  
The Public ◽  
For Profit ◽  
Institutional Resources ◽  
State And Local ◽  
Public Colleges And Universities ◽  
New Evidence

Between 2000 and 2010, U.S. public colleges and universities experienced widespread and uneven changes in funding from state and local appropriations. We find that over this period annual decreases in statewide appropriations led to lower public enrollment and higher for-profit enrollment (with no effect on enrollment overall), as well as increased student borrowing. In an analysis of mechanisms, we detect effects on spending, tuition, and capacity in the public sector. Altogether, the results reveal that core institutional resources affect the types of schools that students attend and yield new evidence of substitution between the public and for-profit sectors.

“A favored child of the state”: Federal Student Aid at Ohio Colleges and Universities, 1934–1943

2004 ◽  
Vol 44 (3) ◽  
pp. 364-387 ◽  
Author(s):  
Kevin P. Bower
Keyword(s):  
Higher Education ◽  
World War Ii ◽  
Federal Government ◽  
The State ◽  
Federal Aid ◽  
World War ◽  
Student Aid ◽  
American Higher Education ◽  
Technological Advantage ◽  
Close Relationship

Higher education scholars are familiar with the close relationship between American higher education and the federal government after World War II. The G.I. Bill and Cold War concerns for maintaining the nation's technological advantage made the federal government the major benefactor of postsecondary growth. The seismic shifts of that era, though, tend to overshadow earlier developing ties between the federal government and the colleges and, more specifically, the roots of direct federal aid to college students. This article seeks to redress that problem by exploring the subtle ways that federal aid became integrated into the visions and plans of the leaders of American higher education in the years prior to World War II. By examining New Deal Era college aid at a variety of institutions of higher education in the state of Ohio, we can uncover how the earlier courtship between the federal government and the colleges helped clear the way for later, more profound changes.

Federal Student Aid and the Gender Dynamics of Political Citizenship

2018 ◽  
Author(s):  
Deondra Rose
Keyword(s):  
Higher Education ◽  
Gender Gap ◽  
Political Engagement ◽  
Student Aid ◽  
Education Policies ◽  
Political Activities ◽  
Higher Education Policies ◽  
Political Citizenship ◽  
Mass Politics ◽  
Aid Programs

Chapter 7 investigates the feedback effects of federal higher education policies on women’s capacity and inclination to participate in politics. This analysis suggests that federal student aid programs have played a role in the declining gender gap in political engagement that we have seen in the last fifty years. By providing valuable resources that significantly increase the probability that beneficiaries will attain higher levels of education, broad-reaching financial aid policies have contributed to significant increases in women’s political interest, political efficacy, and involvement in political activities. Not only do federal higher education policies help to realize the promise of full and equal citizenship by promoting political engagement among a group that has traditionally been underrepresented in mass politics, but also they provide lessons for how the state can successfully use social policy to promote equality in terms of political citizenship.

scholarly journals The State Of Higher Education In 2012

2012 ◽  
Vol 5 (4) ◽  
pp. 233 ◽  
Author(s):  
Frank L. Kurre ◽  
Larry Ladd ◽  
Mary F. Foster ◽  
Michael J. Monahan ◽  
Daniel Romano
Keyword(s):  
Higher Education ◽  
Education Sector ◽  
Regulatory Environment ◽  
Ethical Challenges ◽  
Digital Revolution ◽  
For Profit ◽  
Governmental Support ◽  
Traditional Approaches ◽  
Market Pressures ◽  
New Strategies

The higher education sector is experiencing an escalating pace of change. Even colleges and universities with the greatest resources and strongest brands are confronting change, particularly as a result of the digital revolution that is radically impacting modes of learning and accessibility to knowledge. These changes are driven by market pressures i.e., by the demands and expectations of students and faculty. At the same time, all of higher education continues its evolution in response to ongoing price pressures, to reduced governmental support, to growing competition from the for-profit higher education sector, to its own ethical challenges, and to changes in the regulatory environment. Boards, presidents, provosts and CFOs are addressing these risks and challenges with new strategies and unique action plans that are a far cry from traditional approaches to higher education.

Sign in / Sign up

Export Citation Format

Share Document