1. Compare and contrast the following three proposals for making college â€œmore affordable.â€Be sure to discuss any changes in incentives, costs, benefits, and unintended consequences associated with each.Then pick one as your â€œpreferred policyâ€ and briefly argue why. Assume that the starting point counterfactual is a system that guarantees financial aid based on family income, which consists of some % grant aid, and some % Federal loans, and those with higher family incomes will not be considered for aid (2 pages).
- Free College (4-yr and 2-yr) at public institutions for all students.This means that all tuition and fees are covered for all students, regardless of income and ability.
- Free College (4-yr and 2-yr) at public institutions with a family-income cap (that is higher for 4-yr students).This means that all tuition and fees are covered at 2-yr institutions for all students up to a certain family income of $X and all tuition and fees are covered at 4-yr institutions up to a certain family income of $Y where Y>X.
- Free College (4-yr and 2-yr) at public institutions for those with HSGPA>X or SAT/ACT> Y where X and Y are separate cut-offs for each ability measure and one must score above at least one of these cut-offs to qualify.X and Y can vary depending on 2-yr vs. 4-yr attendance.
- 2. Suppose you are a consultant for the administration of a large public four-year research university that is ranked #40 by US News & World Report.You have been hired to increase the quality of the university, while maintaining accessibility to in-state students.Please discuss your proposal(s), as well as any unintended consequences that may occur, any costs, and any potential downsides.Please use citations to back-up your proposal(s) (2 pages).