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The most recent Planet Money was about the cost of college

by MHB (Rakes of Mallow), Chicago, IL, United States, Earth-199999, Friday, February 28, 2014, 07:07 @ Clay

The issue with lowering tuition, as stated by same guy from Duke, is that colleges that have lowered their tuition/fee prices are seen as providing a lower level of education and that's reflected in the number of applicants/skill of applicants they receive.

Not sure if that's BS but there may be some truth to it.

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