Questioning of Redistribution of Tuition to Student Aid

Inside Higher Ed has been reporting on complaints and political reaction at the University of Iowa about redistribution of tuition toward student aid.  The complaint is basically that middle class families are being taxed to provide such aid.

The University of California has been engaged in such redistribution for years and in fact often cites its aid policy when tuition has been raised. But there could be spillover from Iowa and other locations where the practice has been questioned as tuition here rises.  If redistribution were not used at the U of California, and if state support continues to drop, the only sources left for aid would be federal programs (Pell Grants), state programs (Cal Grants), and private donations.

Private universities engage in such redistribution but their practices are less subject to external political forces.

The Inside Higher Ed report is at:
http://www.insidehighered.com/news/2012/06/08/iowa-proposes-end-use-tuition-revenue-financial-aid