Federal Subsidies for Higher Ed – Drive up Costs, Stifle Competition and Make Students and Universities Less Price-Sensitive.
AUSTIN — Want to lower the cost of college? End all federal subsidies for higher education.
That was the provocative solution proffered at a panel discussion Friday put on by the Texas Public Policy Foundation, a conservative Austin think tank whose “Seven Breakthrough Solutions” for higher education have created a firestorm of controversy within the Texas A&M University and University of Texas Systems.
Neal McCluskey, a free-market advocate with the Cato Institute, said federal student aid such as Pell grants and research grants drive up costs, stifle competition and make students and universities less price-sensitive.
“If you are using your own money, you demand a good product,” McCluskey said. “You professors need to be teaching me something, not doing research or sitting in your office not doing office hours.” Read more…