Tuesday, January 22, 2013

Moral hazard, illustrated

Source:
Much discussion about higher education assumes that the children of wealthy parents have all the advantages, and they certainly have many. But a new study reveals an area where they may be at a disadvantage. The study found that the more money (in total and as a share of total college costs) that parents provide for higher education, the lower the grades their children earn.
The findings -- particularly grouped with other work by the researcher who made them -- suggest that the students least likely to excel are those who receive essentially blank checks for college expenses.

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