Thursday, September 22, 2016

Subsidizing College

I agree that the government should subsidize colleges. I believe that they should be subsidized because it would benefit the graduating college students who have hard times paying off their loans. If it became subsidized, then 2/3 of that payment would be laid off thanks to the tax payers. "'The size of the public subsidy increases with the size of the endowment,' said Mark Schneider, a vice president at the American Institutes for Research, said at the hearing," (Janet Lorin, sltrib.com, 2016). This means that the donations given to colleges, can be used as subsidies towards the students. So, not only will the donations potentially help the college, but it will also help the students with their loans. 

I also disagree with the government subsidizing colleges. I disagree because, maybe, giving subsidies to colleges could potentially encourage them to raise their tuitions. Raising the tuitions for the students would cause them more money, therefore causing the taxpayers give up more money. "'Free' tuition will only further distort the incentives. …there is little evidence that additional spending has enhanced the value of the college degree," (Daniel Mitchell, peoplespundintdaily.com, 2016). This is also a true statement, saying that if college is given for free and subsidies are used all the time then getting a college degree can be easy and anyone can get it just like that. 

In my opinion, I believe that there should be subsidies and college shouldn't be free. There should be subsidies because a students tuition at the end of the year is through the roof, and they're going to have to get a job and worry about paying all that off first. That's where the subsidies come in, if taxpayers pay off 2/3 of that debt, then the students getting out of college won't have to stress about the rest of the payment. Maybe then they can help with other students who need subsidies. 

1 comment:

  1. 'S not a good idea. With subsidizing, college inflation goes up, so that means more money to pay. Subsidizing, therefore, is redundant and driving us deeper into debt. This class is making me realize things I don't want to realize and I hate it. Ignorance is bliss.

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