01 November 2012

Heterogenous Tuition

EconLog | Bryan Caplan | A Bunch of Arguments in Favor of Regressive Tuition

I am very uneasy about committees in state houses setting the price levels of various educations, as Florida is considering. That kind of top-down pricing, especially by politicians, does not have a good track record.

However, note that setting the price of every course of study to the same level is still a top-down decision of the type I am uneasy about. The decision not to set each major's price is still a decision to set each major's price.

If you want differing prices for different subjects, allow loan companies to consider a student's major when setting the terms of their loans. Of course this assumes that student loans haven't all been centralized and semi-nationalized, as they have been in recent years.

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