To boost Pell Grants and address economic inequity, why not tax income earned via investment of college endowment funds?
Readers of this blog are aware of my none-too-subtle concerns with wealthy campuses that do not exemplify best practices: rather than use their wealth to lower their sticker prices and create greater affordability for more prospective students, they have done just the opposite – they have raised their tuition prices and increased their already obscene levels of per-student expenditures.
But it is more than just a few well-known campuses behaving badly. At a time when American families are only too aware that colleges have become less and less affordable, the underlying cause of this unaffordability is the skewed distribution of revenue to institutions of higher learning in general.
More than one-third of all undergraduates are enrolled in two-year colleges. Some are focused on a two-year degree, but many of them plan to transfer to a four-year school and earn their baccalaureate. This is the least expensive level of higher education, with annual tuition generally around $3,000 – and it is the low cost that has led to swelling enrollments in community colleges.