By Thomas K. Lindsay
The Trump administration’s higher education budget would eliminate the loan-interest waiver given to college borrowers. Ending the subsidy, it is argued, would reduce tuition inflation: A Federal Reserve study finds that subsidized interest hikes tuition. Between 1985 and 2011, average tuition nationwide increased 498 percent—more than four times the rate of general inflation (114 percent) as measured by the Consumer Price Index (CPI).
But is tuition inflation as big a problem as these statistics suggest? Some in higher education deny it through using, and misusing, their own “CPI”—the Higher Education Price Index (HEPI). CONTINUE READING HERE