In 2011, lawmakers threw out a 2009 Post-9/11 GI Bill formula that capped benefits based on tuition rates at each state's most expensive public universities, reports Inside Higher Ed. That move capped the standardized benefit nationally at $17,500, and, as a result, the benefit rose sharply in some states while dropping in others.
A new study by researchers at RAND Corp, American Institutes for Research, and the U.S. Military Academy found that in states where the veteran benefit increased, for-profit institutions increased their sticker price, on average, by $437, despite no enrollment growth. By contrast, nonprofit university tuition remained unchanged.
The researchers said that for-profit colleges change their tuition price "to extract surpluses from their students" engaging in what economists call "price discrimination," or pricing that is not related to demand, Inside Higher Ed reported. Private, nonprofits cannot simply adjust tuition rates as easily and quickly, the researchers noted.
The for-profits also quickly reduced tuition when the veterans' tuition benefit in some states dropped, the study showed. Some officials noted in Inside Higher Ed that online students were likely not included in the study.
Overall, the benefit continues to rise; this fall, it is expected to increase to a maximum of $23,671.94 at private institutions, about $866 more than for the current academic year.
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Inside Higher Ed
https://www.insidehighered.com/news/2018/05/29/study-profits-raise-tuition-post-911-gi-bill-benefit-grows