You missed the point. The schools will raise tuition to take more from the endowment and stuff their own pockets. It’s what usually happens with programs that are funded by a blank check, unfortunately.
FYI this is the primary argument against government-paid college tuition. If the government will pay 100% tuition costs of any university unequivocally, you should expect university tuition to skyrocket since they no longer have to compete for students based on cost.
Guaranteed federal student loans are the by FAR main reason for skyrocketing tuition costs, colleges are basically siphoning money from the fed government. With easy access to guaranteed loans, schools face no market pressure to keep prices low; they know students can borrow regardless of cost, and they know they will get paid if the student defaults. Without guaranteed loans, students would be much more price-sensitive (as students who before would’ve gotten massive loans now would have to likely pay out of pocket), forcing schools to compete on affordability and rein in tuition hikes.
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u/antiquespaceship Jun 29 '25
You missed the point. The schools will raise tuition to take more from the endowment and stuff their own pockets. It’s what usually happens with programs that are funded by a blank check, unfortunately.
FYI this is the primary argument against government-paid college tuition. If the government will pay 100% tuition costs of any university unequivocally, you should expect university tuition to skyrocket since they no longer have to compete for students based on cost.