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The total national expense on higher education rose significantly

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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 11:23
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The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

Inspite of the previous assessments and no change in tuition costs the total national expense on higher education rose significantly during the past two years. This implies that as per the previous assessments, the total national expense on higher education should not have increased. Therefore any statement which suggests or implies that the total expense could have increased will be incorrect.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:

A. a growing number of students use their parent’s savings to pay for their higher education. --> It doesn't matter if students are using parent's saving or not to pay for their higher education. This in no manner suggests that total national expense on higher education could have increased. Correct.
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending. --> This fact which increases the total national expense on higher education could have been overlooked by the Board of Education. Incorrect.
C. the average interest rate of students loans rose last year by five percent. --> Lets say that lots of students are enrolling into higher education and are opting for loans. This increase in demand can lead to increase in average interest rate of students loan as well. So there is a possibility that national expense on higher education has increased. Incorrect.
D. the demand for a Master’s degree has become more prevalent in many occupations. --> This statement suggests that more number of students are enrolling into higher education which is a prevalent in many occupations. This can also increase the national expense. Incorrect.
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.--> This clearly suggests that national expense on higher education has increased. Incorrect.

Answer Choice : A
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 11:27
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The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:

A. a growing number of students use their parent’s savings to pay for their higher education.
Not sure. How exactly does this affect higher education cost. Let's keep and get back later.

B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.
Yes. Higher education becomes more expensive because of this.

C. the average interest rate of students loans rose last year by five percent.
A rise in interest rate will lead to a rise in education expense. We can get rid of this one.

D. the demand for a Master’s degree has become more prevalent in many occupations.
More enrollment = rise in cost. Sure helps.

E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.
Higher Tuition definitely helps.


I think (A) should be the Answer.
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 11:41
Pre-thinking: Increase in national expense in education,which is opposite to the assessments made by government,tution fees is unchanged for colleges and universities
So we need some statemnets which says there is other factors which lead to increase in expenses

A. a growing number of students use their parent’s savings to pay for their higher education. -not relevant, we are talking about expenses
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending. -matches our pre thinking
C. the average interest rate of students loans rose last year by five percent. -little out of scope, we need overall
D. the demand for a Master’s degree has become more prevalent in many occupations. - irrelevant
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition. -out of scope

OA: B-As B correctly gives the reason why expenses are increased even after tution fees are same
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 11:46
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Here is my reasoning.I am not sure though!

The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:

We need to find an option THAT DOES NOT EXPLAIN increase in national expense

A. a growing number of students use their parent’s savings to pay for their higher education.
>>CORRECT This does NOT EXPLAIN increase in expenditure on higher education. It does not say that total number of students are increasing. Only that number of students using savings are increasing. So they may just be opting for savings over loan. Not resulting in increase in national expense...... Lets still evaluate other options

XB. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.
>>This would explain increase in expense even when tuition fees did not increase. Other costs increased.

XC. the average interest rate of students loans rose last year by five percent.
>>This would explain increase in expense. I am guessing amount spent on interest also counts as expense towards education.

XD. the demand for a Master’s degree has become more prevalent in many occupations.
>>This would explain increase in expense, as more students would be required to go for higher education.

XE. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.
>>This would explain increase in expense. Even if number of students remains same, more students are opting for expensive courses compared to cheap courses.

Please excuse the typos...
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 12:14
The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:

A. a growing number of students use their parent’s savings to pay for their higher education. : correct, Doesnot give reason why national spending has increased .
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending. : incorrect: as this states one of reason which led to increase in national spending
C. the average interest rate of students loans rose last year by five percent. : incorrect: as this states one of reason which led to increase in national spending
D. the demand for a Master’s degree has become more prevalent in many occupations. : incorrect: as this states one of reason which led to increase in national spending
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.: incorrect: as this states one of reason which led to increase in national spending

Answer : A
Premise: National spend has increased, but tuition fees has not increased,
Conclusion : So something else would have caused increase, like books, living expense, travel .
So we are looking for option which doesnot hold good among option like these
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 14:13
Issue:
National expense have increased contrary to assessments.

Additional information:
Tuition cost did not change

Need:
Information that gives reason for increase.

The general assumption would be that cost might have increased if there is cost increase in any other way such as living cost, additional students etc.

Lets look at the options

A. This gives absolutely no information regarding increase in cost. This is best bet. Lets hold on to this.

B. Dormitory price increased will have some impact on cost. So this is not our right answer - Incorrect.

C.Avg rate of student loan increase will have impact on cost - Incorrect.

D.More demand, more students and more cost - Incorrect.

E.higher tuition in universities and more students so this explains the increase in cost - Incorrect

Ans : A

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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 14:19
The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:

A. a growing number of students use their parent’s savings to pay for their higher education.

This statement is about the source of payment for higher education, so it may be valid. For example, some students don't want to take a loan, that's why they get an opportunity for education via their family.

B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.

This statement can help to explain the situation, because raised prices will cause higher expenses.

C. the average interest rate of students loans rose last year by five percent.

The higher the loan rate the bigger a debt. But this fact is irrelevant to overall expenses on higher education. This fact is about banks' profit.

D. the demand for a Master’s degree has become more prevalent in many occupations.

This statement may be a cause: the supply will eventually meet the demand for Master's degree.

E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.

It may be a reason, if I understand correctly the US system of higher education: college is not a higher education.
So young people choose to go to the university and as a result national higher education expenses rose.


The answer is C
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 15:25
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The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:

Paraphrase of the argument:
Board of Education's assessment was that higher education expenses would not rise, but the total national expense on high education rose significantly over the past two years.
There is also a fact stated that the increase in expense was not because of tuition costs because that remained the same.

This is a explain except question. Hence, 4 out of 5 answer choices would explain the fallacy in the Board's assessment, while the one correct answer choice would do nothing.

A. a growing number of students use their parent’s savings to pay for their higher education. Correct. This does not explain why the board's assessment was incorrect.
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending. Incorrect. This explains the error in the board's assessment, one aspect being the increase in other student services apart from the tuition costs.
C. the average interest rate of students loans rose last year by five percent. Incorrect. This explains perhaps the increase in expense was because of the increase interest rates.
D. the demand for a Master’s degree has become more prevalent in many occupations. Incorrect. May be many more students are enrolling in Master's degree because of the increased demand.
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition. Incorrect. Higher tuition in state universities, hence higher cost.

Correct answer A
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 15:25
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The passage tells us that: 1) total expenditure by a country on education has increased in the past 2 years, 2) despite cost of tuition staying the same.

Now this is clearly an anomaly, if tuition fees are constant what is driving the increase in expenditure? We are given a number of explanations in the options and asked to identify the option that DOES NOT provide an explanation for the anomaly. Lets use the POE method to arrive at the option that FAILS to explain this anomalous occurrence:

A. a growing number of students use their parent’s savings to pay for their higher education. - This should not be relevant when considering total national cost of education. We have been told that education expense is going up, how students are funding their education is not relevant to the discussion. This is therefore a candidate for the correct answer lets keep A.
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending. - This could possibly be a reason for the increased expense, if tuition fee are the same but other related costs ancillary to getting educated are rising this might explain the overall increase in expenditure. Thus B can be eliminated.
C. the average interest rate of students loans rose last year by five percent. - This offers yet another possible explanation, if tuition costs are the same but the cost of financing the loans used to pay for the education have increased, you would expect an increase in overall expenditure on education. We can eliminate C.
D. the demand for a Master’s degree has become more prevalent in many occupations. - If due to competition in the job market students are compelled to complete their masters as well as their bachelors, i.e. 2 degrees rather than one you would expect spending on education to go up even if tuition fee stay the same. D is out.
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition. - Apparently, universities are more expensive than colleges in this country and students are increasingly selecting the pricier option. This can be an explanation for why spending is rising, because students are choosing more expensive options. E is gone.

After reviewing all options, we can conclude that only option A fails to explain the anomaly of rising spending despite constant tuition fees. IMO A
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 15:26
The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT: 4 incorrect answer explain the Board’s erroneous assessment

A. a growing number of students use their parent’s savings to pay for their higher education. tells us why expense has increased
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending. tells us why increased
C. the average interest rate of students loans rose last year by five percent. reason why education expense increase
D. the demand for a Master’s degree has become more prevalent in many occupations.tells us why the Board’s assessment was faulty
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition. if it happened then there wasn’t an error in the Board’s assessment (correct)

Answer E

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The total national expense on higher education rose significantly  [#permalink]

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New post Updated on: 16 Jul 2019, 07:18
1
A. a growing number of students use their parent’s savings to pay for their higher education.
Irrelevant: The source of the money don't matter. What matter is how much??

raised prices of dormitories and students’ services in B,...
increased interest rate of students loans in C,...
increased demand for Master degrees than before which increases the admission and expenditure in D,...
Preference to universities with higher intuition fees in E, ...
All of them has some logic related to increased cost or demand.

A
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Originally posted by Mahmoudfawzy83 on 15 Jul 2019, 16:37.
Last edited by Mahmoudfawzy83 on 16 Jul 2019, 07:18, edited 2 times in total.
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 17:23
A is the only answer which doesn't help to explain board assessment
Rest all indicate price increase which has been not considered by board assessment

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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 17:26
1
A. a growing number of students use their parent’s savings to pay for their higher education.--- does not necessarily indicate the increase in price
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.----direct expense increase
C. the average interest rate of students loans rose last year by five percent.-- if the price for dorms increases expense increases
D. the demand for a Master’s degree has become more prevalent in many occupations. -- demand increases, therefore, more people invest in education
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.----tuition increases therefore expense increases
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The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 18:07
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Argument: the total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:

A. a growing number of students use their parent’s savings to pay for their higher education.
CORRECT ANSWER. Whether more students use their parent's savings to pay their higher education or not doesn't help to explain the Board’s erroneous assessments. The tuition costs in universities and colleges remained the same during the past two years.

B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.
This fact helps to explain the Board’s erroneous assessments as the rise in total expense on higher education was likely to come from the rise in the prices of dormitories and students’ services.

C. the average interest rate of students loans rose last year by five percent.
This fact helps to explain the Board’s erroneous assessments as the significant rise in total higher education expense (during the past two years) probably came from the 5-percent increase in average interest rate of students loans last year.

D. the demand for a Master’s degree has become more prevalent in many occupations.
This fact helps to explain the Board’s erroneous assessments as the rise in total expense on higher education was likely from the rising demand for a higher education degree (i.e. Master) in many occupations.

E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.
This fact helps to explain the Board’s erroneous assessments as the significant rise in total higher education expense possibly came from greater tendency to apply to (and thus, enter) state universities, which has higher student tuition fees, instead of college


Correct answer is (A)
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 18:55
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The TOTAL NATIONAL EXPENSE rose significantly in the past two years. This increase is contrary to the assessments made by the Board. Tuition costs in Universities and Colleges did not change during this time.
So, the rise in expense happened because people have spent in education in some other ways that the board did not expect. [OR] there was a rise in the loan or some financial issues because of which people had to pay higher than the previous years.

A. a growing number of students use their parent’s savings to pay for their higher education.
So? The students use their own savings or their parent’s savings; it should no way to increase expenses.

B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.
Tuition cost did not increase, but other services such as dormitories, tutors, and lending have. Thus, overall spending can increase.

C. the average interest rate of students loans rose last year by five percent.
Since the interest rate of student loans increased, the students will pay paying back more money for the loans than that of previous years. Thus, overall spending can increase.

D. the demand for a Master’s degree has become more prevalent in many occupations.
Master’s degree is a higher form of education and hence an additional expense for higher education. Since the demand increased, more students will be seeking admissions in the master's programs. Thus, overall spending can increase.

E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.
Since it is stated that State Universities have higher tuition, and many students prefer to apply to it compared to that of previous years, the overall expense will be more.

Answer A
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New post 15 Jul 2019, 20:06
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First sentence states an observation. Second sentence adds evidence to this observation. Education board expected total national expense on higher education to drop but that didn't happen. We need to select an option which DOES NOT explains this.

A.a growing number of students use their parent’s savings to pay for their higher education
Whether the students are using their parent's savings or their own money they are anyways spending money. This doesn't explains the argument so let's keep it.

B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.
Evidence stated in second sentence mentioned tutition costs were not raised but what about other related costs like the ones stated in this option. This explains growth in expense so this cannot be our answer.

C. the average interest rate of students loans rose last year by five percent.
Again, tuition costs were not raised but interest rates on student's loans were. Which means students have to shell out more money from their pockets. We can reject this option too.

D. the demand for a Master’s degree has become more prevalent in many occupations.
Since demand for a Master's degree has increased in occupations everyone is more interested in getting one more than usual and thus spending on higher education. Not our answer.

E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.
Whatever be the reason for this behavior, it only contributes towards increase in expenditure. Not our answer.

Hence option A.
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 20:40
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The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:

A. a growing number of students use their parent’s savings to pay for their higher education.
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending. hence the expense on higher education will increase
C. the average interest rate of students loans rose last year by five percent. will increase total expense on savings
D. the demand for a Master’s degree has become more prevalent in many occupations. if more people are getting masters,The total national expense on higher education will rise
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.again higher tution fees will increase The total national expense on higher education

Only A mentions that even though money might be coming from different sources, total expense spent should remain same. Money coming from parents savings or from other sources should not have an impact
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 21:13
the interest rate increased last year only but the argument talks about the rise in the last two years.

C is the correct answer.
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Re: The total national expense on higher education rose significantly  [#permalink]

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New post 15 Jul 2019, 21:26
Answer should be B as it explains the reason for increase in expense

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New post 15 Jul 2019, 21:42
1
Stimulus-
1. The total national expense on higher education rose significantly
2. The assessments made by the board were contradictory.

We need to find the option that doesn't explain the erroneous assessments of the board. In other words we have to find the option which doesn't explain the increase in the total national expense on higher education in spite of the fact that tuition fees remain constant

A. A growing number of students use their parent's savings. This option tells us about the source of the fees paid by students, but it doesn't explain the reason behind the increase in the total national expense on higher education. This could be the correct answer.

B. There is increase in the prices of dormitories and students’ services such as private tutors or book lending.
Total Expenses= tuition fees + other student services
Hence if there is increase in other student services, total expenses will increase. Eliminate this one.

C. There is increase in the interest rate of the student loans. That will increase the net tuition fees expenses paid by the students for their education, and hence there is increase in the total expenses. Eliminate this one too.

D. The demand for a Master’s degree has become more prevalent in many occupations. Hence, more number of students will go for Masters degree, increasing the total expenses on higher education. Dump this one.

E. Many students preferred State universities in which tuition fees is on the higher side. More tuition fees >>>> more expenses on higher education.
Eliminate it!!

IMO A
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Re: The total national expense on higher education rose significantly   [#permalink] 15 Jul 2019, 21:42

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