On October 5th, the Association has written in its blog of potential tuition price war among the desperate colleges as a result of the new administration student loans policy. Today we learned, the war has begun. What can one learn from this new development? The Association has hypothesized that if the US colleges keep increasing their tuition as they have done it in the past, it will at one point negatively effect its business/existence/going-concern. But, as usual, no-one believe that it is going to happen, until it is too late.
- Students had overpaid the tuition in the past. They are the heroes who have prevented the US colleges from collapsing many years ago, and unknowingly support their inefficient or over spending institutions.
- The new administration’s policy to reduce the federal student aids has a positive impact on the demand side, but the reverse is true in the supply side of the equation.
- The public will see more college merger and closures in the US. There will also be a merger for state owned institutions, especially for those organizations that do not show improvement year-after-year under the PBFM.
- Definitely, the structural changes in the US higher ed have happened as it has been written in this blog.
Do you have enough arsenals to be in the war?