Reed critiques the business model approach to US colleges

July 5, 2019

Subsidies are a crucial yet poorly understood factor in the current funding crisis that looms over US community colleges, writes Matt Reed. While the forms of subsidies can vary by geographic area, the fact remains that colleges, like universities, are not meant to be economically self-sustaining entities. Reed surveys a handful of alternative funding models that have attempted to compensate for this fact, but he concludes that operating at a loss is a feature of the system. The real source of the US college crisis comes down to the fact that popular discourse refuses to acknowledge that public sector funding can be more efficient than the private sector in some contexts, concludes Reed. Inside Higher Ed (International)