New Joint AJU/SJSU Study Underway
I am pleased to announce that Andrew Jackson University is teaming up with the Department of Economics at San Jose State University to study the impact of federal aid and marketing on the education sector.
With the recent (August 14th) presidential signing into law of the Higher Education Opportunity Act of 2008 (http://edlabor.house.gov/micro/coaa.shtml) and the fact that access to education is an issue in this fall's Presidential election, the time is right to study how the current Federal Aid programs are impacting the behavior of educators.
In 2005, economist Dr. Richard K. Vedder testified before Congress (http://republicans.edlabor.house.gov/archive/press/press109/first/04apr/hea041905.htm) that the current federal aid programs are creating excess demand in education markets and causing prices to rise. However, it is also possible that as a result of the subsidies, the true effect we are seeing is excess supply in the marketplace, where the perceived cost to student is masked by the federal aid and the true cost to society is excessive as a result of inefficient practices on the part of educators. One manifestation of this problem is seen by the behavior of the many for-profit as well as traditional non-profit colleges and schools that are spending thousands of dollars per student on mass internet marketing.
The AJU/SJSU study also plans to look at student outcomes to determine what effects, if any, result from the demand or supply side problems created by Federal Aid.
Happy Studying,
Don Kassner
With the recent (August 14th) presidential signing into law of the Higher Education Opportunity Act of 2008 (http://edlabor.house.gov/micro/coaa.shtml) and the fact that access to education is an issue in this fall's Presidential election, the time is right to study how the current Federal Aid programs are impacting the behavior of educators.
In 2005, economist Dr. Richard K. Vedder testified before Congress (http://republicans.edlabor.house.gov/archive/press/press109/first/04apr/hea041905.htm) that the current federal aid programs are creating excess demand in education markets and causing prices to rise. However, it is also possible that as a result of the subsidies, the true effect we are seeing is excess supply in the marketplace, where the perceived cost to student is masked by the federal aid and the true cost to society is excessive as a result of inefficient practices on the part of educators. One manifestation of this problem is seen by the behavior of the many for-profit as well as traditional non-profit colleges and schools that are spending thousands of dollars per student on mass internet marketing.
The AJU/SJSU study also plans to look at student outcomes to determine what effects, if any, result from the demand or supply side problems created by Federal Aid.
Happy Studying,
Don Kassner
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