Members of Congress were urged to pass a Higher Education Act reauthorization bill Tuesday that, among other things, would restrict federal spending on financial aid to students.
Economist Richard Vedder testified before the Congressional Committee on Education and the Workforce in a hearing on college access, stating excessive spending by the federal government in the form of financial aid was increasing the rate at which college tuition prices inflated.
College tuition has been rising steadily over recent years. The cost of attending the University, which includes tuition, room and board, has increased by approximately five percent each year for the past two years, Director of Student Financial Services Yvonne Hubbard said.
Curry School of Education Dean David Breneman said he speculates the Republican members of the Committee who aim to reduce federal spending on student aid and are "looking for a rationale that blames colleges for rising tuition charges" welcomed Vedder's testimony.
"When the federal government increases subsidized student loans, gives a Pell Grant or grants a tuition tax credit, it increases the number of students wishing to attend college at any given tuition fee," Vedder said in his testimony. "Federal policies increase the demand for education relative to the supply, which pushes prices or tuition fees up."
Vedder recommended that, in its reauthorization bill, the Committee seek to improve competition in higher education, promote "non-traditional" alternatives to not-for-profit schools, and work to slow the cost to the federal government in its financing of higher education. These recommendations were made in light of the high amount of Congressional spending in the past few years, Vedder said in his testimony.
Donald Heller, a senior research associate at the Center for the Study of Higher Education at the Pennsylvania State University, was present at the hearing to rebut Vedder's claims.
Citing a study done by the Department of Education in 2001, Heller said there is no connection between state and federal financial aid and the rising tuition prices and a lack of appropriations from the state was found to be the primary reason behind rising tuition prices.
Breneman also disagreed that cutting financial aid to students would lead to colleges lowering their tuition prices. Breneman said Pell grants, as well as other grant programs, have not had as much "purchasing power" compared to the tuition rates that have been rising over the past few years. Breneman also explained that it was impossible for federal aid to inflate tuition prices.
"It's fallacious to blame federal programs because there are caps on them," he said. "They are limited by statute."
Hubbard took a non-economic stance against federal aid cuts.
"You cut back on financial aid, and the people who will suffer are those who can't write the check," she said.
Read More
Two senior U.Va. Health leaders quietly take new jobs without formal announcement
By Ford McCracken | YesterdayKibbe’s departure marks the end of an ongoing battle between U.Va. Health employees and their senior leadership.
Letter from 12 deans to Board of Visitors goes unanswered for almost two weeks
By Naima Sawaya | YesterdayAt the time of publication, the academic deans had received no response from the Board regarding their offer to meet with the Board “as soon as possible.”
Sen. Tim Kaine speaks to U.Va. students, discusses Ryan resignation and more
By Grace Traxler | 2 days agoIn an informal Q&A session, audience members asked about threats to federal research, the future of diversity, equity and inclusion at the University, potential shifts in the Democratic Party and more.
