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A Proposal for Deregulation of Public Universities

A Proposal for Deregulation of Public Universities

(p.189) 14 A Proposal for Deregulation of Public Universities
Saving Alma Mater
Ernst R. Berndt
University of Chicago Press

The century-old financial model by which American public universities have been funded can no longer provide an affordable high-quality college education for many lower- and middle-income Americans. This chapter proposes a new financial model that replaces government subsidies with scholarships. In this proposal, state governments would continue to support public higher education as before, but in the form of scholarship awards to students rather than as direct appropriations to campuses. In the proposed model, public universities would be given the flexibility to establish their own tuition charges but only as a component of a larger plan. An inevitable outcome of increased self-reliance would be greater academic segmentation, as public universities learned the importance of focusing on their competitive strengths. In this new scenario, public higher-education dollars would be expended both efficiently and fairly.

Keywords:   public universities, college education, higher education, cost analysis, financial models, scholarship

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