By V.I. Lenin

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Many recent grads are in the same boat. 14 HIGHER EDUCATION Another appalling New York Times profile demonstrated even worse problems in the graduate school world, telling the story of veterinarian Hayley Schafer, who graduated from veterinary school with over $312,000 in student-loan debt. Veterinary practice had been her “dream job” since the age of 5, and she made it, but at a price. Nor is she alone: They don’t teach much at veterinary school about bears, particularly the figurative kind, although debt as large and scary as any grizzly shadows most vet school grads, usually for decades.

The boom in college enrollment helped, but the problem with financing research via tuition dollars is that the more students you bring in, the more students you have to teach – and teaching isn’t research. With federal research grants, which became widely available after World War II, tuition revenue wasn’t as important. And with federal student aid exploding in the last quarter of the 20th century, undergraduates became less sensitive about costs, which also helped universities pad their bottom lines.

Scannell. 24 This is really just price discounting (and price discrimination) disguised as charity, but there are limits to that approach. First of all, to the extent that they need tuition money to survive, schools won’t be able to afford these discounts for long. Second, as more schools adopt this strategy, we’re likely to see a race to the bottom. And third, once word of heavy discounting gets out, better-off parents who are expected to pay full freight – the higher education industry’s cash cows – will feel like suckers and either demand discounts themselves or take their business elsewhere.

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