Who Really Benefits?

Michael Sheehan

Physician's Money Digest, October15 2003, Volume 10, Issue 19

Wall StreetJournal

Three decades ago, the total cost of allcollege financial aid, including grants,loans, and tax breaks, was $18 billion intoday's dollars. This year, that figure is upto $69 billion and rising. Although mostof today's college students couldn't affordthe sticker price on their college educationwithout that aid, the editorial page argues that themain beneficiaries of all that money arethe colleges themselves. Increases in aidgive colleges more room to jack uptuition and fees, the editorial says, at ratesthat average twice the increase in inflation. Possible solution: Although slashingaid would snuff out the hopes of a collegeeducation for many prospective students,there have been suggestions that the federalgovernment should curtail aid at collegesthat raise costs too steeply.