Letters to the Editor
Investor’s Business Daily

To the Editor:

Re: “Aid in the Shade,” Editorial, July 15

It is an urban legend—embraced by several Washington policymakers—that increases in federal student aid drive up college tuition.

In fact, the only conclusion that can be drawn from research on higher education costs is this: Increases in federal student aid do not lead to increases in tuition. Studies conducted by the U.S. Department of Education, Coopers & Lybrand, and economists Michael McPherson and Morton Shapiro agree on this point.

The groundbreaking G.I. Bill and Higher Education Act proved the power that federal student aid could have on college opportunity, social mobility, and the nation’s economic development. During their lifetime, college graduates will out-earn those without a bachelor’s degree by more than $1 million. While the average federal debt of students graduating from four-year state and independent colleges in 2000 was about $16,000, it’s hard to imagine a better investment they could make.

As our knowledge-based economy demands more college graduates, and the percentage of low-income college-age students skyrockets, more—not less—support of federal student aid by our nation’s policymakers and opinion leaders will keep our nation strong and healthy.

Sincerely,

David L. Warren
President
National Association of Independent Colleges and Universities Washington, DC