Should Price Reflect Cost? (Part 2)

When it comes to pricing, higher education and health care have much in common

In Part I of this post, we discussed how the “high cost/high aid” model of price and cost in higher education has led to growing educational debt and a widening achievement gap between affluent and low-income students. This week, we’ll talk about how (and why) to change this model.

But first: consider the following hypothetical conversation between an admissions officer and two prospective students, as he explains the college’s financial aid policy: