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Well, here's just one example: not getting into financial aid bidding wars for particularly desirable students.

I'm not particularly interested in their justifications, more their real reasons. The biggest one for raising tuition per se is that it's entirely unrestricted money, they can spend it any way they want. The Federal government is pretty strict about where research overhead goes, and pesky alumni don't trust schools to do the right thing and restrict a lot of their donations (see this for why their concerns are entirely reasonable: http://en.wikipedia.org/wiki/Woodrow_Wilson_School_of_Public...)

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