Academic Books

This book presents a radical plan for financial aid. The existing system relies on the federal government and financial institutions offering guaranteed student loans, and on the federal government and colleges providing grants.

The proposed system suggests colleges and universities should stop giving grants (tuition discounts) and start guaranteeing student loans. This has two salutary effects: first, list price tuition would decrease and become meaningful; second, institutions would be incentivized to do a good job. Also, since the federal government would no longer be spending money on loan guarantees, it could increase Pell Grant funding.

The book analyzes the costs and benefits of the proposed new system.

This book puts college pricing in a broader context. Why do college prices rise more rapidly than other prices? To answer the question, one has to recognize it inherently involves a comparison. We uncover some industries whose pricing behavior is similar to higher education, as well as others whose pricing behavior differs.

Analyzing the similarities and differences leads to our conclusions — and explains the economy-wide factors that drive the cost of higher education well above general inflation.

Why Does College Cost So Much? was inherently historical — it explained how we arrived at the current situation. This book tries to project where we are going.

Clearly there are challenges for American higher education. Funding for state-supported schools is dwindling. Demographic trends suggest there will be fewer college-age students. Some strong voices doubt the value of a college degree. Others argue that the traditional college will be replaced by online institutions.

The Road Ahead analyzes these issues with what we believe is a level-headed analysis. We forecast that the future will not be all rosy for America's colleges and universities — but it will not be as dreary as some suggest.