Article,

The threat to independent education: Public subsidies and private colleges

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Policy Analysis, (1997)

Abstract

AB: Abstract This paper analyzes the negative effects on private colleges of state subsidies provided to state-run colleges, noting the increasing proportion of students attending public colleges and the closing of more than 300 private colleges between 1969-70 and 1992-93. It urges legislators to eliminate direct subsidies to universities, to require universities to charge tuition sufficient to cover costs, and to give financial aid directly to students. The first section considers effects of government subsidies on college tuition and the shift in enrollment from private to public colleges. Next, the British experience with primary and secondary education is reviewed to illustrate the reduction of a dominant private sector to a minority role. Third, the situation in three states is reviewed: New York, a large state with a high ratio of private-to-public enrollment; California, a large state with a low ratio of private-to-public enrollment; and Vermont, a small state with a low reliance of public colleges and universities on state government funding. The following section focuses on the importance of private higher education, emphasizing the special characteristics of private colleges, their contribution to the social order, and their economic efficiency. The final section examines various solutions to this problem. (Contains 70 endnotes.) (DB)

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