But new regulations being proposed by the Department of Education would undermine that goal by presenting more obstacles to students seeking to attend the higher education institutions that work best for them. For-profit institutions, which would be most affected by the new regulations, serve a student population that has been underserved by traditional higher education.
Well of course this administration will do everything to undermine freedom to contract and choose, and anything that makes a profit. But wait, that’s not the real story.
The problem is the federal regulations on which schools can enroll students receiving federal loans and grants.
If the “for profit” schools are being subsidized by federal grants and loans, then they’re not “for profit”. Profit occurs only in the free market when consumers and producers use the price system to coordinate, and producers deliver a product, at a price above production costs and lower (or equal to) than the students marginal utility of said product.
If you want to get in bed with leviathan, you play by its rules. Hillsdale college accepts no federal subsidies. They don’t have to play by rules set by the state. Their graduates have a product, a Hillsdale degree, which allows them to compete in the market place. The market determines the value of the product.
I simply don’t see the problem with the regulations. I mean, from the standpoint of federal intervention into education via regulation and subsidization, I have a serious problem. But for those school that want it both ways: freedom to create a product and subsidization from the state, I can only say too bad.
Like all policy driven economy, it is a trail of broken windows.