Study: Admissions and aid policies are a larger factor in student debt than tuition
- Admissions and financial aid policies at a given institution play a larger role than tuition in burdening students with debt, according to a new paper by University of Richmond business professor James Monks and released by the Cornell Higher Education Research Institute.
- Using institution type and the incoming class' economic profiles as controls, Monks found that colleges and universities pledging to meet students' full demonstrated need end up with lower debt levels among graduates, as opposed to schools that don't provide full financial aid and drive more students to take out loans.
- Monks' findings--based on a pool of 747 four-year, not-for profit, bachelor's-degree granting, accredited institutions with valid financial aid profiles--calls into question the focus on tuition control as a means to combat student debt, suggesting that states could better control student debt by adjusting admissions and aid policies.
From the article:
In the murder mystery of what's driving up the student debt burden, most people finger rising tuition prices as the main culprit. A survey earlier this year by Sallie Mae found that student and their parent, wary of high debt loads, are more likely than in the past to rule colleges out of their search process on the basis of price. State politicians regularly cite the debt burden as a reason to contain tuition growth at public universities. ...
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