9 of 10 households 'would lose' with 'free college'

A new study from the National Bureau of Economic Research shows the downside to the promises of "free college" that Democratic presidential candidates are promoting.

Some 86% of American households "would lose" under the touted plans, the study concludes.

The Washington Free Beacon reported researchers at the University of Wisconsin the free-college plans promised by Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., would require "radical tax hikes."

The study authors, Chao Fu, Shoya Ishimaru and John Kennan, used two scenarios to simulate the effects of the plans: "one in which the federal government forces states to adopt tuition-free public colleges and another in which it provides subsidies to encourage states to do so."

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They then figured how those requirements would affect American households.

"Over 86% of all households would lose while about 60% of the lowest income quintile would gain from such policies," the researchers concluded.

The poorest Americans were provided benefits under both sets of facts, the study explained, but "at the expense of everyone else."

Most households saw any benefits "outweighed by its negative consequences."

The Free Beacon that along with Warren and Sanders, former Obama official Julián Castro, wants to make public college free. Others, including South Bend mayor Pete Buttigieg and Rep. Tulsi Gabbard, D-Hawaii, back a less ambitious plan that would remove tuition costs only for middle- and low-income families.

Children could be hurt before they receive free college, the researchers warn.

Warren's plan, for example, would force state governments to withdraw resources from public K-12 education.

The said the concept of free college is "politically seductive,"
but a college education "can't actually be free – someone must pay for it." the study said.

"Allocating additional resources to the college stage may be self-defeating if this entails a reduction of public expenditure in the earlier stages."

Some argue that spending less on students doesn't necessarily lead to "lower education quality," the report noted.

And, it said, some existing "free" college programs have proven to lower the completion rate.