Under the guarantees, the price stays the same for the duration of a student’s education. Each year’s freshmen pay a higher rate, which is then guaranteed through their years in college. But tuition guarantees do nothing to prod colleges to manage their expenses better or otherwise control the price of higher education. Though they make financial planning more predictable, they could cost families more in the end. Colleges would have to guess at their own expenses over several years, which gives them an incentive to protect themselves against unforeseen costs by overcharging for the freshman year. There are other possible consequences. About 1 in 3 college students transfers to another school at some point. If tuition freezes become the default model for colleges, students would feel less able to change schools because they would be entering at a new, probably higher tuition.

Read full article [here].
by The Editors, The Los Angeles Times.

Posted: July 6th, 2012, by: admin. Categories: . Awaiting Comments.