NEG Econ DA.docx - Disad 1 Econ After the Great Recession colleges and universities stopped receiving enough money \u2013 they increased tuition and

NEG Econ DA.docx - Disad 1 Econ After the Great Recession...

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Disad 1 - Econ After the Great Recession, colleges and universities stopped receiving enough money – they increased tuition and reduced faculty. Mitchell et al ’14 . [Michael Mitchell: Senior Policy Analyst Program Director, State Policy Fellowship Program, Vincent Palacios, and Michael Leachman, 5-1-2014, " States Are Still Funding Higher Education Below Pre-Recession Levels ] NC Most states have begun in the past year to restore some of the cuts they made to higher education funding after the recession hit. Eight states, though, are still cutting, and in almost all states — including those that are have boosted their support — higher education funding remains well below pre-recession levels . The large funding cuts have led to both steep tuition increases and spending cuts that may diminish the quality of education available to students at a time when a highly educated workforce is more crucial than ever to the nation’s economic future . After adjusting for inflation: Forty-eight states — all except Alaska and North Dakota — are spending less per student than they did before the recession .[1] States cut funding deeply after the recession . The average state is spending $2,026 or 23 percent less per student than before the recession. Per-student funding in Arizona, Louisiana, and South Carolina is down by more than 40 percent since the start of the recession (Louisiana is among the eight states that continued to cut funding over the last year). Wyoming, West Virginia, Louisiana, Wisconsin, and North Carolina cut funding the most over the last year. Of these, all but Wyoming have cut per student funding by more than 20 percent since the recession hit. In the last year, 42 states increased funding per student, by an average of $449 or 7.2 percent.[2] Deep state funding cuts have major consequences for public colleges and universities. States (and to a lesser extent localities) provide 53 percent of the revenue that can be used to support instruction at these schools.[3] When this funding is cut, colleges and universities generally must either cut educational or other services, raise tuition to cover the gap , or both. A recent decrease in enrollment from colleges and universities has been working to lessen this debt. Price ’19. [Russell Price, Chief Economist, Ameriprise Financial 2019, "Student loans: the next recession risk?," Ameripriseadvisors, ] NC According to studies from the Federal Reserve and others, two groups stand out as having the highest loan default rates: Those who did not finish their educational program. Failing to complete a program means an individual incurs costs without realizing the financial benefits of a degree. Those who attended for-profit institutions. College Board data shows that a higher percentage of students attending for-profit institutions require loans to fund their education, and for amounts that are much larger than average.
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