Are Selective Private and Public Colleges Affordable?

Education Economics (Vol. 21/No. 1, February 2013)

Posted: 3 Aug 2009 Last revised: 21 Mar 2013

See all articles by John A. Karikari

John A. Karikari

US Government Accountability Office (GAO)

Hashem Dezhbakhsh

Emory University - Department of Economics

Date Written: August 1, 2010

Abstract

We examine college affordability under the existing pricing and financial aid system that awards both non need-based and need-based aid. Using data of freshmen attending a large number of selective private and public colleges, we find that the prices students actually pay for college have increased over time. Need-based grant aid has not kept pace with the substantial increases in non need-based aid. Most importantly, although low-income students received more subsidies than higher-income students, the existing financial aid system does not provide enough affordability to needy students. Nonetheless, the deficiency cannot be attributed to the increases in non need-based aid.

Keywords: College affordability, financial aid, public/private colleges

JEL Classification: I21

Suggested Citation

Karikari, John A. and Dezhbakhsh, Hashem, Are Selective Private and Public Colleges Affordable? (August 1, 2010). Education Economics (Vol. 21/No. 1, February 2013), Available at SSRN: https://ssrn.com/abstract=1440281

John A. Karikari (Contact Author)

US Government Accountability Office (GAO) ( email )

Center for Economics
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Washington, DC 20548
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Hashem Dezhbakhsh

Emory University - Department of Economics ( email )

1602 Fishburne Drive
Atlanta, GA 30322
United States
404-727-4679 (Phone)
404-727-4639 (Fax)

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