June 29, 1998 Contacts: David Breneman (804) 924-3332 Sarah Turner (804) 924-7857 NEW RESEARCH GROUP WILL INVESTIGATE ECONOMICS OF HIGHER EDUCATION How does availability of federal student aid affect college enrollments? In what ways are community colleges changing? What impact do loans and scholarships have on the costs of public higher education? These are some of the questions researchers at the University of Virginia will investigate through the newly funded Virginia Project on the Economics of Higher Education. The Andrew Mellon Foundation has awarded U.Va.'s Curry School of Education $200,000 for creating a project devoted to researching economic questions related to higher education. The project is one of few research groups in the nation that analyses educational policy issues from an economic perspective. "The project's goal is clear: to do high-quality research on a topic that matters greatly -- access to higher education," said David W. Breneman, Curry School dean and noted authority on higher education financing, including trends in tuition, student aid and public and private support. The project unites the expertise of faculty in U.Va.'s Curry School and economics department in the College of Arts and Sciences. Breneman, whose broad research background includes the academic labor market, financing of community colleges and the changing role of liberal arts colleges, will study community colleges. He will examine numerous issues related to two-year schools, including their changing roles, extent and cost of remedial education, and how changes in federal and state aid affect tuition costs and enrollment. "Regrettably, little is understood about the extent to which current student aid policies facilitate access to higher education," Breneman noted. William R. Johnson, a U.Va. economics professor who has published extensively on tax policy and income distribution, will study the distribution of subsidies and costs in public higher education. A senior labor and public finance economist, Johnson will investigate issues related to equity and efficiency in government support of higher education. MORE 2 Sarah Turner, an assistant professor in Curry's policy studies program, will examine the role institutions play in changing the availability of federal financial aid. An economist who has written about the behavior of colleges and universities as nonprofits, Turner will research how such institutions respond to changes in student aid funding. To bring awareness of such issues, Turner has begun organizing and holding forums at U.Va. The researchers hope the presentations by top-tier economists and social scientists will encourage graduate students to pursue questions related to educational policies. "An impetus for creating the project is a lack of applied research that connects economics to educational policy issues," Turner said. "We hope to generate interest and enthusiasm among social scientists and educators for research in this area." ### Television reporters should contact the TV News Office at (804) 924-7550.