U.S. recession's other victim: public universities

Friday, July 20, 2012

For generations, most college-bound Americans paid reasonable fees to attend publicly financed state universities.

But the bedrock of that system is fracturing as cash-strapped states slash funding to these schools just as attendance has soared. Places like Ohio State, Penn State and the University of Michigan now receive less than 7 percent of their budgets from state appropriations.

As a result, public universities— which historically have graduated the majority of U.S. college students—are eliminating programs, raising tuition and accepting more out-of-state students, who typically pay significantly higher rates.

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