Private institutions sometimes practice price discrimination — that is, selling the same thing at different prices depending on the buyer. Airlines do that, for example, to maximize revenue.

Should public institutions also be allowed to engage in price discrimination? Would it be fine for the state to charge drivers different prices for license renewal depending on their income? I think not.

But in North Carolina, the state’s flagship school, UNC, has a policy of waiving all tuition payments for students whose family incomes are below a certain level. Should that be OK? And what is the university’s motive?

In today’s Martin Center article, Teresa Lichtenwalner looks at this policy. UNC will charge no tuition for NC students whose family income is under $80,000. To her, this looks like a way of getting around the Supreme Court’s decision against racial preferences.

She writes:

Is UNC-CH low-balling their prospective students to target a certain demographic? Daniel Klasik, a UNC professor of education, certainly had no qualms about saying recently that “traditionally underrepresented racial minority students tend to come from lower socioeconomic backgrounds.” Though UNC-CH has now officially barred admissions counselors from considering an applicant’s race, it’s hard not to see the latest move as an attempt to put more minority students in the applicant pool, generally.

Read the whole thing.