Paying colleges for performance: Good policy or passing fad?

Stefanie Botelho's picture
Tuesday, May 27, 2014

Just as parents sometimes resort to paying their children for good grades, a number of states are taking the same approach with their public colleges and universities.

Increasingly, they are offering extra tax money for showing improvement in key areas such as graduation rates and job placement.

It’s called performance funding, and many of the state’s educators, from Harris-Stowe State University to the University of Missouri system, appear to be on board with the concept.

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