• This is a political forum that is non-biased/non-partisan and treats every persons position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Do Government education grants raise the cost of college?

Do Government education grants raise the cost of college?

  • Yes

    Votes: 5 100.0%
  • No

    Votes: 0 0.0%
  • Other

    Votes: 0 0.0%

  • Total voters
    5

fredmertz

Active member
Joined
Apr 27, 2010
Messages
358
Reaction score
115
Gender
Male
Political Leaning
Libertarian
Do Government education grants raise the cost of college?

Yes or no?


I've read an interesting argument against healthcare. They explained how the HC bill will raise costs of healthcare by comparing it to how Education Grants raise costs of College.


The argument is that colleges know that most students qualify for Grants. Prior to the grant money, which we'll say holds a value of $Y, colleges would charge $X. And they would fill their colleges. But because students started getting grants, colleges could then afford to charge $X (what they previously charged) + $Y (the extra amount the government is willing to pay for). And they could increase the total revenue signficantly because $Y increased at a rate that equals the change in the cost of college. And so college tuition rates are increasing at 6%, $Y is increasing at a rate to keep up. Colleges have incentive to raise costs without decreasing student population

The problems are of course if you're one of the people who don't qualify for $Y. In which case the cost to you significantly rises because now you're paying $X + $Y out of pocket without receiving $Y. So the number of people going to college remain the same. The upper middle class really get screwed because they either can't or can barely afford the college bill, but make too much to get grants. The super rich pay more, but are at least able to afford it (though it's still debatable as to whether or not this is 'fair'). And so in the end some poorer people get to go to college at the cost of some upper middle class not going to college, all the while the gov't has to spend money (paid for by taxes which are paid moreso by the wealthy who then in turn have to pay more for college and not get the grants or not go to college since costs rose so much) and the colleges make more money too.


This is the reasoning, if I explained it well enough for you. So I ask you two questions - is this reasoning sound? Do Government education grants raise the cost of college? and is it likely that the same model argument could be made for healthcare? why or why not?
 

Kandahar

Enemy Combatant
DP Veteran
Joined
Jul 20, 2005
Messages
20,688
Reaction score
7,320
Location
Washington, DC
Gender
Male
Political Leaning
Liberal
Yes, education grants raise the overall cost, but not as much as indicated here. The cost increases a lesser amount than the grant provides. Those grants are most definitely a net plus for students. As a result, anyone in this country who wants to go to college can afford to do so.
 

phattonez

Traditionalist
DP Veteran
Joined
Jun 3, 2009
Messages
30,552
Reaction score
4,221
Location
Los Angeles, CA
Gender
Male
Political Leaning
Other
Yes. When you raise demand you raise price. By how much, though, no one knows.
 

rivrrat

Goddess of Bacon
DP Veteran
Joined
Feb 26, 2007
Messages
13,988
Reaction score
6,593
Location
Charlottesville, VA
Gender
Female
Political Leaning
Undisclosed
As a good general rule of thumb: If the govt is involved, costs go up. ;)
 
Top Bottom