Not everyone wants a cheap, no-frills degree

Some college students will choose a cheap, no-frills degree, but others will pay more for the “college experience,” which includes sports teams and student activities, writes a university provost.

But most students aren’t paying the full cost of their university education/socialization. Higher education is heavily subsidized by taxpayers.

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  1. Florida resident says:

    Here is pretty clear summary of the subject, based in part on personal experience of the authors:

  2. Not exactly ground shaking news. There’s a market for Bentleys, why shouldn’t there be a market for “Bentley” educations?

    This new meme, the “$10,000 bachelor’s”, suggests however that the lefty solution of pumping ever more government money into higher education is in the process of crashing into reality.

    I can only hope so.

  3. I’ll admit, I was one of those who was willing to pay more to go to a major University and have “the college experience”. And I did! Greatest 5 years of my life, and got a great degree (STEM, if you’re wondering) on top of that, too.

  4. The welfare economic case for government operation of an industry depends on natural monopoly. The education industry is not a natural monopoly. The welfare economic case for government subsidization of an industry depends on a “public goods” argument. Schools teach, test, and certify. Given the public goods argument for subsidization of “education” (however defined), what possible argument can one make for charging more than necessary for instruction, testing, and certification?
    If it is fraud for a mechanic to charge for the repair of a functional motor and if it is fraud for a physician to charge for the treatment of a healthy patient, then it is fraud for a teacher, school, school district, or State to charge for the instruction of a student who does not need our help.

    The cost to taxpayers of the US K-PhD education industry includes the $700 billion per year tax-generated revenue stream, the opportunity cost to students of the time that they spend in school, the lost productuivity that students might have generated while gainfully employed, and the lost innovation in educational methods that a competitive market in educational services would generate. All the US government has to do to reduce these costs is require that the four pre-college school systems which the Federal government legitimately controls (DC, DOD, BIA, US Embassy schools) and the five post-secondary schools (Air Force Academy, Coast Guard Academy, Merchant Marine Academy, Military Academy, and Naval Academy) compose sequences of exams for all courses required for a diploma and license to independent institutions (University of Phoenix, Sylvan Learning Center, Kumon) the right to proctor exams. Let competition between the University of Phoenix and Sulvan Learning Centers drive the cost of a high school diploma and a college degree down to the cost of textbooks and of grading exams. Only the parasites will lose.