Monday, December 15, 2008


by Andrew Gillen & Daniel Bennett

It looks as though at least one school, Yeshiva University, was caught in the ponzi scheme run by Bernard Madoff that is estimated to have stolen 50 billion. Its losses have not yet been determined.

Separately, Claudia Goldin, co-author of The Race Between Education and Technology, which was recently reviewed by our own Richard Vedder, states that she would like to see some of the stimulus money spent on "more and greater Pell Grants." We are on board with increasing the role of Pell grants, as well as her preference for giving funds to the students, rather than to the institutions.

The Higher Education Opportunity Act, passed earlier this year, increases the maximum size of the Pell Grant from $4,731 in 2008-09, to $6,000 in 2009-10, with an annual increase of $400 each school year, through 2014-15.

1 comment:

Practitioner said...

I'm afraid you have misread Claudia Goldin's comments. When she says she would prefer aiding students to institutions, there is no indication that she understands that Pell grants, in practice, go to institutions, which decide if the grants will be used to reduced net-tuition costs, or not. This seems different from CCAP's suggestion that Pell grants should be given to students in such a way so as to bypass institutions and their ability to convert them to other purposes.