It’s amazing what adjustments the free market makes when an industry isn’t constantly flooded with free money by the government for a couple days.
Insanely priced college tuitions – long bid up thanks to the government’s penchant for approving basically all student loans without rhyme or reason – are finally taking a tick lower. The move is starting at “a small handful of liberal arts colleges” who are looking to restart operations post-pandemic, Bloomberg noted.
The Covid crisis has inadvertently put the industry in check while the Fed and the government focus their “cash flooding” strategy on things like corporate bonds and airlines. As a result, Oberlin College in Ohio has cut tuition by $10,000 for all students and Denison University is handing out a $100,000 scholarship over four years. Davidson College has put a freeze on its tuition. Princeton University had already cut tuition for undergraduates by 10% for 2020.
Other colleges, like Grinnell College in Iowa, said that financial aid packages would include grants instead of loans.