[ohazi]

Tuition increases coupled with equivalent financial aid increases are also a convenient way for relatively well-endowed universities to turn "strings attached" money into "no strings attached" money that they can then use however they want. They're essentially laundering donor money.

> At most private institutions, a substantial majority of grant aid comes from endowment funds set up by trustees, alumni, and other generous donors. Many pay into the system hoping that their grants will make college more affordable for their endowed students. In the short term, it does. However, in the long term, the institution responds by raising tuition rates to keep the net price at the market value. While this may benefit especially needy students who qualify for additional grant aid, the average student feels no difference and the additional scholarship money gets diverted to other purposes. They are rarely fraudulent or scandalous. Most of the time they just involve making the institution prettier and more competitive in the cutthroat race for the best and the brightest of America's high school seniors. But looked at from a birds-eye view, one gets the uncanny feeling that colleges are not honoring their donors' wishes to make the place more affordable. And lest you think that you can avoid all of this by refusing to donate, remember that as a United States taxpayer, you pay into the system just like millions of your fellow-citizens. Are you satisfied with how your money is being spent?

http://www.stanford.edu/~rhamerly/cgi-bin/Interesting/Educat...