Paul L. Caron

Wednesday, January 9, 2019

Zelinsky: Will Congress Penalize Colleges That Increase Tuition?

Congress (2015)Edward Zelinsky (Cardozo), Will Congress Penalize Colleges That Increase Tuition?:

Senator Charles Grassley of Iowa will serve as chairman of the Senate Finance Committee during the upcoming 115th Congress. Senator Grassley’s decision to lead the Finance Committee may have important consequences for the nation’s colleges and universities. Grassley, a Republican, has criticized increased tuition charges in the face of the pronounced, tax-free growth of many college endowments.

In light of his prior statements and the current political environment, a Grassley-led Finance Committee may scrutinize higher education endowments. On the committee’s agenda could be legislation aimed at the tax benefits such endowments enjoy and the benefits of tax-exempt entities more generally. ...

It is likely that a Grassley-led Finance Committee will consider changes to directly regulate the tuition levels of endowed educational institutions. That consideration will take place in a Congress in which Republicans only control the Senate and House Democrats will have to choose either bipartisan cooperation or confrontation with the Senate.

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Because college tuition is so heavily subsidized by federal student loans, all colleges should be restricted to raising tuition no more than the annual chained CPI-U inflation index. It can't rise any faster than Social Security payments.

Posted by: ruralcounsel | Jan 10, 2019 3:45:02 AM