Why Is College Getting More Expensive?
Two key reasons researchers said colleges costs continue to rise even in an era of low inflation.
The Washington Post reports.
Why the price tag of a college degree continues to rise
Why does college cost so much?
It’s a question parents, students, and politicians often ask and the answer is often elusive. There is much speculation about what is exactly to blame for college costs that tick up more and more every year above the rate of inflation and well above lagging family incomes.
You’ve probably heard about a lot of reasons for the price surge: tenured professors, climbing walls, luxury dorms, too many administrators, overpaid presidents. But it’s almost impossible to isolate one or two causes. Trying to dissect a university’s budget is nearly impossible. Money is constantly moving from parts of a university that make money (large English lecture classes for freshmen) to subsidize those segments that lose money (small senior chemistry labs).
Why the price tag of a college degree continues to rise (The Washington Post)
Comments
It’s more expensive because student loans are so easy to get.
You’ve probably heard about a lot of reasons for the price surge
And I heard about the real reason from some dead white guy. Adam Smith.
Increase demand.
Keep supply fixed (more or less).
The result is inevitable.
One would think that college types would know this.
Coincidently I have written post about this on another blog. It’s far too long to repost to the comments section here but the gist of the post is a study by the Federal Reserve Bank of New York. The study reaches the uninspiring conclusion that for each dollar borrowing caps are raised on student loans academic institutions goose the tuition $.65 and ” the subsidized loan expansion could have been to their detriment, on net, because of the sizable and offsetting tuition effect.” Savor that! You are no better off but your school is doing great. You can find that Fed report here. https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr733.pdf