Article written by Amanda Ripley

The easiest way for universities to make up for the cuts was to shift some of the cost to students—and to find richer students. “Once that sustainable public funding was taken out from under these schools, they started acting more like businesses,” says Maggie Thompson, the executive director of Generation Progress, a nonprofit education-advocacy group. State cutbacks did not necessarily make colleges more efficient, which was the hope; they made colleges more entrepreneurial.

Some universities began to enroll more full-paying foreign and out-of-state students to make up the difference. Over the past decade, for example, Purdue University has reduced its in-state student population by 4,300 while adding 5,300 out-of-state and foreign students, who pay triple the tuition. “They moved away from working to educate people in their region to competing for the most elite and wealthy students—in a way that was unprecedented,” Thompson says.

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