Rachel Whitaker Source 4

A) Why are colleges raising tuition?

B) Bluenski, Goldie. "Colleges Scramble to Avoid Violating Federal-Aid Limit." Chronicle of Higher Education 57.31 (2011): A1-A8. Education Full Text. Web. 7 Mar. 2016.

Corinthian College raised tuition in order to keep students from being able to use federal student aid to cover the complete cost. This has to do with the 90/10 rule. This rule drives universities to create more ways to go around the 10% part of the 90/10 rule. The 90/10 rule was created to make sure that aid was not solely from the government and that they were getting aid from other private sources. GI Bill and tuition assistance to students who were also in active duty do not count as part of the 90%. Most universities are very close to the 90% value, but those that aren't are under exemptions. Universities use the tuition increase to help lobby against the 90/10 rule. Levels of student aid have risen, yet the increase in tuition increases amount of debt. Universities try their most creative ideas in getting around the rule and take advantage of their exemptions. However, thousands of colleges have been able to comply to the law.

For my exploratory paper this has been a very useful find. Not only does it prove that there are laws and rules in place to create a balance between aid and loans, thousands of colleges are having no problem complying with it. The rise of tuition is only there to make it harder for students to get all of their aid federally and cause the university to break the 90/10 rule. The fact that colleges put so much creativity into getting around the rule versus trying to comply to it is disturbing. However, to say that all colleges are doing this is unfair, seeing as above, many universities are having no issue with it.

Here we are again with the finger of blame pointing at the university. Policymakers are giving universities 90% federal aid and yet they still need to raise tuition. I don't know how they are going to get themselves out of this one, but as we have seen so far, colleges are very creative so I'm sure they will find a way to point the finger the other way. This journal has given me a lot of new information about policies in place and ways that universities use their federal aid. I know more about the process and the details which will help me more in exploring.

Further Question:
What would happen if the 90/10 rule was defeated. Does the rule benefit or hurt students?