Do Institutions Respond Asymmetrically to Changes in State Need- and Merit-Based Aid?

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Tuition at public and private universities tend to rise when states increase the amount of need-based financial aid that they will make available to students, according to a paper by University of Missouri Professor Bradley Curs and University of California Professor Luciana Dar.

Page 13 of the study offers a serious indictment to the state-public university process: “The findings would indicate that public institutions may attempt to capture the increased generosity of state financial aid policy by increasing their own net price, thus, minimizing the ability of state financial aid policy to increase access for low-income students.”

Click here to read the paper.