Tuesday, December 29, 2009

College Econ 101: Higher Tuition, Dried-Up Lending | The Lipman Times


College Econ 101: Higher Tuition, Dried-Up Lending | The Lipman Times:

"The Washington Post reports that during the economic crisis, college costs have continued to soar, while options for financing a higher-education have been severely diminished. Many poor and middle-class households are finding it more and more difficult to pay for a college education, and some are finding the new reality quite prohibitive. Even for those who can afford college have to rely on high-interest student loans to get into the most-competitive programs, and some qualified students are having to choose lesser programs to ensure they can pay.

Public universities are suffering greatly from the financial crisis; state funding has nearly vanished, taking the key component in their financing model out of the equation and requiring tuition hikes. The University of California has announced that is will be introducing a 32 percent tuition hike in the next academic year, which prompted student riots and required riot police to protect public school officials."