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Author Naomi Schaefer Riley argues that despite record donations colleges will not decrease tuition.
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Top twenty colleges took in more than eight billion dollars in donations last year it was so much money that those colleges do not even need to charge any of those -- tuitions anymore.
That's just one reason why the Obama team wants to get those tuition costs down.
Joining us now Naomi Schaefer Riley also all but the faculty lounges.
So do you think these colleges -- -- colleges within with the tons and tons of money.
All they go to eliminate tuition so that more people can go without cost.
Of course not in addition to the fact that record donation into the record donations last year there -- record applications so there are a whole lot of people who want to pay tuition in the colleges -- -- is not gonna turn down free money so why would they eliminate them.
Because the president wants and all we're -- I think might be the right.
They can do when you're loaded up with billions of dollars in the bank I have some college administrators I want introduced in simple -- -- what -- do it.
Well I mean it the first thing is can always find a way to spend more money in Mena -- you've been on a college campus especially these top 25 that you're talking about and we should say that college donations were up across the board last year.
But this especially in the in these top twenty I mean some of them look like resorts.
You know they have -- plenty of you know luxury facilities and means students you know are are basically living in you know nice hotels most of the time.
You know and in addition to that you know they're paying a lot of faculty to sit around and do nothing.
So essentially you know how does it always find a way to use the -- extra money if you give it to them one -- they have -- cut costs.
There's no I mean -- the first bodies we have a third party Payer system as we do with health care so you know you have the federal government always standing their saying.
You know if you guys wanna raise tuition we will make up the difference in the cost so that creates perverse incentives for the for the schools.
In by the way I mean I don't really think the Obama administration is particularly serious about you know cutting back on federal financial aid for higher education.
If colleges they'll cut their costs do you threaten to do them will -- There's especially that's the only tool he so I mean it wouldn't what do you invest that the tool is we won't give you is much money if you don't cut your costs but why doesn't he make that threat of state.
So -- it's just that no owner wants to that no voter wants to hear the president threatened to take away federal financial aid everybody you know.
Well admitted.
We'll I have -- I look at -- the penalty in principle I agree with you but the bottom line is that.
Key is something that polls very well with Americans Americans love higher education I've talked -- pollsters about it's like apple pie and mom.
And and higher education are sort of like the three things that Americans always -- So if you start threatening them and if especially if you start threatening to cut back on the resource is of you know some of these kids are really not about but if you start threatening to cut back on the financially that you're giving to students voters will not be pre define which schools -- talking.
Got here I mean if you're talking about the private schools they -- did an and then we have financial -- if you can't afford to come you don't have to pay.
I mean when you're talking about Ivy League schools if you can't pay the bill you can still go.
They come up with a financial and that's how they come to all of us and raise money at the end of the day is so that anybody can go to one of the higher is to.
Although there's a middle class crime -- I mean there are people who you know if you're making coming -- less than 60000 dollars a year as a as a family -- -- know you will not pay college tuition.
But if you're -- making -- 150000 dollars and suddenly you have two kids.
Who'll wanna go to -- 40000 dollar a year private college -- they're not gonna say all well you know we feel bad about that you can demonstrate that you can't pay that -- if you're only making a 150000.
Dollars -- -- -- trying to -- eighty oncology industry -- -- -- -- -- at a time and again.
The key question do you think 50000 dollars a year to go to an Ivy League school is a good deal.
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I gotta gotta gotta gotta know every -- -- thank you very -- to do that anymore on that story and we don't get it.
