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Why has college gotten so expensive?
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So the average price of a four-year college has more than doubled in the last 30 years -- that's what the College Board tells us. And -- in part, because of that -- the average student graduates with around $25,000 in student loan debt. All this is becoming a pretty familiar story.
But what's often missing from the discussion is WHY. Why is the price of higher education rising so much faster even than health care? Marketplace's education correspondent Amy Scott investigated a growing trend of lavish student gyms and dorms and whether it contributed to the rising cost of tuition.
While "zero-entry" pools and high-end dormitory dining get a lot of attention, tuition hikes mainly stem from declines in state funding for higher education, as well as rising health care costs and financial aid.
Ironically enough, "there's even sort of a disincentive to lower prices, because there's a sense that if a college charges a lot, it must be good," Scott said.
Learn more about how college tuitions have increased so much by listening to the audio above.
CORRECTION: An earlier version of the summary of this interview incorrectly described the primary reasons behind rising college tuition. The text has been corrected.
John Nelson's comment that "in the public sector" the cost of college has increased due to the decrease in state funding makes no sense. The price to the consumer would increase due to a reduction in subsidies, but that should not affect the cost.
The cost of college continues to increase because of subsidies to public schools. Elite state schools subsidize the price of tuition by spreading the cost amongst a large pool of taxpayers. They build football teams and rock walls, support a breadth of educational programs and classes, and of course provide elite government benefits. To compete, private schools match all of these offerings as best able by raising tuition - spreading the cost among few. Once the offerings are comparable, the elite public schools spend more again to maintain their elite status, and again spread the cost among many taxpayers. And this is an unsustainable cycle continues.
Higher education has little, if any, downward pricing pressure. To fix higher education inflation, stop subsidizing schools and start providing needs based financial aid to the student - similar to a voucher. This would force all schools to compete on price and value and truly fix the cost - not the price - issue.
In Maryland as with most other states, the Third Way Democrats along with Republicans are creating a tiered educational system with the larger state universities catering to the 'best of the best' in the world and the smaller colleges becoming basically vocational job training for corporate human resources departments. So, the best of the best are the same as the regular liberal arts universities except they have the ammenities of which you speak above. The moree luxury the higher-class student and the higher the tuition. That is what is driving tuition costs.
Domestic students are being pushed to vocational degree programs that offer cheap, low-quality academics for what used to be university prices. Four year apprentice electrical trainees with the trade unions used to yield quality workers who knew the workplace safety rules and knew quality material and worksmanship. Now people graduate from a career college with few of the skills above and a degree that doesn't allow them to go anywhere else career wise. They are trapped in a poverty job. This is the tiered system being set up by Third Way Democrats and will be reversed as people become more and more angry about the trajectory these 'New Economy' people think the country is going.
It's all about money. Not students. It's about paying faculty and administrations. Education is the LAST priority. I'm leaving teaching after 23 years because it's all just too 'clicky' for me. It's all about putting in ridiculously short days and taking the money. SCAM. Can you say SCAM?
Blame loans, grants, and financial aid. These are the real drivers of cost. What do we charge? The most possible!!! The aforementioned have been helping to facilitate that for the last 30+ years. My father always talks about how in the late 1960's and early 1970's, one could work during the summer and make enough to cover the tuition and books for the school year!!! Now, good luck being able to do that.
Here is why PUBLIC University of California Berkeley has gotten so expensive for residents of California. Cal ranked # 2 in faculty earning potential. UC Berkeley tuition is rising faster than costs at other universities. Believe it: Harvard College cheaper than Cal. Breslauer’s Birgeneau, decision to ‘charge Californians higher tuition’ means Cal. nationally ranked #1 public university total academic cost - resident.
University of California negates the promise of equality of opportunity: access, affordability is farther and farther out of reach. Self-absorbed Birgeneau, Breslauer are outspoken for public UC Berkeley ‘charging Californians much higher’ tuition. Cal. Chancellor Birgeneau, Provost Breslauer leave an indelible legacy on access, affordability.
Birgeneau ($450,000) Breslauer ($306,000) like to blame the politicians, since they stopped giving them every dollar demanded. The ‘charge Californians higher’ tuition skyrocketed fees by an average 14% per year from 2006 to 2011-12 academic years. If Chancellor Provost had allowed fees to rise at the same rate of inflation over the past 10 years they would still be in reach of most middle income students. Breslauer Berheneau increase disparities in higher education and defeat the promise of equality of opportunity. An unacceptable legacy for all Californians.
Additional tax funding should sunset. The sluggish economy and 10% unemployment devistate family education savings. Simply asking for more taxes to fund self-absorbed Cal.senior leadership, old inefficient higher education models and fund excessive faculty staff compensation, burdensome bonuses, is not the answer.
UC Berkeley is to maximize access to the widest number of Californians at a reasonable cost: mission of diversity, equality of opportunity. Birgeneau’s Breslauer’s ‘charge Californians higher’ tuition denies middle income families the transformative value of Cal.
The California dream: keep it alive at Cal. fire (honorably retire) Provost George W Breslauer. Birgeneau resigned.
Opinions? UC Board of Regents marsha.kelman@ucop.edu Calif. State Senators, Assembly members.
Has anyone analyzed expenditures for a number of colleges to know "exactly" where the money goes?
Not all teaching is in expensive labs. Could the cost of the basic classroom gone up that much? I can't help but wonder where the money goes and what business colleges are really in. Is it education, research, medicine, sports, etc.?
