REGRESSIVE TRANSFERS? Minnesota considers tuition subsidies for residents. King at SCSU Scholars is underwhelmed.
I end up agreeing with David Strom (this happens quite often) that "we're just making a flat-out subsidy for kids who could go to college anyway and most of whom would be able to afford it." It also has had the effect of increasing tuitions at Georgia schools, so much that the state had to cap the tuition payments to remove the incentive. Like in Georgia, this will most likely make it harder for students to get into the University of Minnesota.
There's lots of linked research.

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