Objective: The goal of this policy is to get Universities to reduce the cost of their tuition.
My proposal: If tuition for a university is in the top 10% of most costly tuition for a four year university (cost of living adjusted) on an annual basis, or a school increases tuition by more than double the inflation rate, the following occurs:
Year 1: All federal grants to the university must be reduced by 50% the next year.
Year 2 (if tuition is not out of the top 10%): All federal grants to the university are reduced an additional 50% and prospective students must be notified this school is on probation to lose all federal funding.
Year 3 (if tuition continues to be in top 10%): All federal grants are ceased and federal backed loans for first year/new students are withdrawn by end of year.
Expected results: Students will not experience the inflation in tuition they have seen over the past 3 decades. As tuition prices begin to become noticed, universities will become hard pressed to consider laws of economics rather than take advantage of being a monopoly.
Other considerations:
- If tuition is within 10% of average tuition for a four year university (cost of living adjusted) penalties are not applicable.
- Schools will be given a 2 year grace period upon enactment to get their costs down.