Nov 29, 2007

Politicians pressure colleges to increase inequality

From the WSJ: "[Elite] Colleges are moving to eliminate -- or at least ease -- student debt as pressure builds in Washington for them to spend more from their endowments to help families afford the rising cost of school."

College graduates make much more over their lifetimes than do non-graduates. If elite colleges such as Harvard and Amherst reduce their students' debt they will be increasing their graduates' wealth and so will increase inequality.