Why IS College so expensive?

[G.T.]

 

[RyzinEnagy]

Because they know that these days it's almost necessary to have a college degree (not everybody is an entrepreneur, in case someone wanted to respond with that), so it's easy to raise tuition knowing that students will still pay it.

 

[G.T.]

Because they know that these days it's almost necessary to have a college degree (not everybody is an entrepreneur, in case someone wanted to respond with that), so it's easy to raise tuition knowing that students will still pay it.

The Business of issuing College Degrees is becoming near Monopoly.

 

[VaYank5150]

Because they know that these days it's almost necessary to have a college degree (not everybody is an entrepreneur, in case someone wanted to respond with that), so it's easy to raise tuition knowing that students will still pay it.

This sounds about right.

 

[kwc57]

Hey, high quality equipment for the football teams isn't cheap.

 

[johnrocks]

Follow the money, a couple generations ago, people worked themselves through college so it was kinda tough increasing costs to someone who got going at 3 AM to throw a paper route before class, now with guaranteed student loans, grants and bureaucrats needing to spend the last dime to get the budget increased next fiscal year...costs are spiraling, reminds me of healthcare in that respect.

 

[psikeyhackr]

People have to be properly trained to not understand astronomical trivia.

[ame=http://www.youtube.com/watch?v=p0wk4qG2mIg]YouTube - Harvard Graduates Explain Seasons[/ame]

Isn't it summer in Australia when it is snowing in Boston?

psik

 

[camcooh2]

I believe it has more to do with the American military and the volunteer army we have draped all over the world. A college degree is the best way to enter or stay in the middle class in America. By allowing college costs to constantly escalate at a rate of approximately 6% annually, it keeps college out of reach for millions of lower/lower middle class kids. These kids go into the service and are the "volunteer" army, as it's their only possible option. The military is happy because they have a steaky supply of new recruits. Middle class parents grudginly pay the exorbitant tuition/fee costs as the price of keeping junior out of the current war. Problem is, if we have a more immediate threat, say China, and we have to reinstitute the draft...all hell would break loose. But college costs would come down.

 

[Cecilie1200]

Hey, high quality equipment for the football teams isn't cheap.

Successful - even moderately successful - sports programs generally pay for themselves, and then some. If I remember correctly, the U of A's basketball and football teams not only pay for themselves entirely, they also help fund the less-watched sports programs.

 

[Cecilie1200]

If you all think you can stand a response that's a bit more thoughtful and less agenda-driven - military spread? Really? - this is what I found when I did some cursory research.

1) Half to two-thirds of the typical colleges budget goes to paying instructional salaries. So rising paychecks are indeed a factor in higher college costs.

The median salary for a full-time college educator is $46,300, according to the Bureau of Labor Statistics. The picture is brighter for those who have tenure: Full professors make an average $76,200, according to the American Association of University Professors.

The tenure system and the lack of mandatory retirement can make it tough to oust high-earning but less productive employees.

2) Colleges that want good rankings with U.S. News & World Reports annual college rankings and other college-rating programs shell out big bucks on ubiquitous high-speed Internet access, bigger and better dining facilities, new gyms and concert halls, apartments instead of dorms for students.

While a lot of this spending is funded by endowments, a lot of it isn't.

3) One factor that keeps inflation muted in the private sector is worker productivity. Technology, equipment and experience tend to help the average worker make widgets faster over time. That growing productivity allows a business to create more products for the same cost.

But colleges arent in the business of making widgets. Those that try to force greater productivity out of their professors -- by increasing class sizes or class loads -- often find their strategies backfire. The best instructors leave for better environments, and the colleges reputations suffer among students and the ranking services that gauge university quality.

Theres actually pressure for colleges to be less productive: to shrink class sizes and reduce class loads so professors can spend more time doing research.

4) Scholarships, grants and loans reduce the out-of-pocket cost for the majority of students. (Loans just put off the pain, of course, but few students really think about how much the borrowing is going to cost them in the long run.)

As weve seen with the health-care system, if people arent feeling the real cost of their purchases, they have less incentive to change their behavior. If youre paying the full tab and Elite University jacks up its rates 10%, you might opt for Just Fine State. If enough others followed your lead, Elite might rethink its pricing.

As it stands, however, Elite just needs to boost your financial aid package by 8% or so, and you'll grumble but stay put.

5) For two decades ending in 1997, the number of college-age people actually declined. The percentage of this shrinking group that actually attended college, however, shot up: from 47% of high school graduates in 1973 to 65% in 1996. That meant the number of people attending college in the 1990s remained pretty stable.

Now the under-25 set is again on the rise. The number of college-age people is expected to grow from 17.5 million in 1997 to 21.2 million by 2010. The percentage actually attending college is bound to increase further, as fewer and fewer decent jobs remain for those with just a high school education.

Meanwhile, the most selective schools havent expanded that much, even as the number of qualified applicants keeps rising. Thats why the SAT scores that would have gotten you into Harvard a decade ago might not get you accepted at your safety school today.

Many other schools have shelved expansion plans -- either because they are state schools with shrinking legislative appropriations or because their endowment funds and giving programs took a hit along with the economy. An economic rebound could reverse that trend, but right now the good colleges have far more applicants than theyve got room.

With that kind of demand, college and universities can continue to boost prices almost at will. (Thanks to MSNMoney)

 

[Cecilie1200]

So basically, college is so expensive and getting more so because they can get away with it.

 

[Kevin_Kennedy]

[youtube]AIcfMMVcYZg[/youtube]

This video lays it out very well.

 

[NYcarbineer]

For the same reason private K - 12 school would get very very expensive if you ever saw a government funded voucher system put in,

like what conservatives generally want.

 

[Ragnar]

Cecilie1200 and johnrocks hit a lot of the main points.

I'd just thow in that, at least for middle and lower tier colleges (like I went to), it now takes longer to get a "4 year" degree due to lower standards. Public education is so bad many universities have to spend time and money on Freshmen teaching crap they should have learned already.

That and the new government monopoly on student loans (see "Obamacare") will keep making things worse in the near term.

In general, college is too easy to get into and too easy to get loans and grants for. That will keep the cost curve bending up for sure.

 

[Dr.Traveler]

If you all think you can stand a response that's a bit more thoughtful and less agenda-driven - military spread? Really? - this is what I found when I did some cursory research.

1) Half to two-thirds of the typical colleges budget goes to paying instructional salaries. So rising paychecks are indeed a factor in higher college costs.

The median salary for a full-time college educator is $46,300, according to the Bureau of Labor Statistics. The picture is brighter for those who have tenure: Full professors make an average $76,200, according to the American Association of University Professors.

Keep in mind, a Full professor making more than the median figure is probably funding a decent amount of his paycheck with grant money. That means that tuition money isn't going towards the higher end paychecks.

Also keep in mind, in many fields a Ph'D can make 1.5 to 2 times what a University can offer by entering the work force. I know that I had a few offers at 1.5 times what I earn now. I turned the money down because I really do enjoy teaching and research. Plus, while Tenure isn't the job security people think it is (especially now), it is a nice perk.

3) One factor that keeps inflation muted in the private sector is worker productivity. Technology, equipment and experience tend to help the average worker make widgets faster over time. That growing productivity allows a business to create more products for the same cost.

But colleges arent in the business of making widgets. Those that try to force greater productivity out of their professors -- by increasing class sizes or class loads -- often find their strategies backfire. The best instructors leave for better environments, and the colleges reputations suffer among students and the ranking services that gauge university quality.

Theres actually pressure for colleges to be less productive: to shrink class sizes and reduce class loads so professors can spend more time doing research.

This is true. Increasing class size also leades to increased DWF rates without some serious redesign work behind the scenes. I've seen a few schools (LSU) come up with successful redesigns that allowed them to increase class size and still stay successful, but that's really very hard.

I know I'm very successful with 30 students or less, but the last time I taught 50 students in a classroom I had a success rate of about 50%. Which turned out to be pretty much what everyone else teaching classes at that size had.

I'd add there's a lot more pressure now on Research, especially grant writing. Universites WANT grant money from a tenured faculty as it means that the faculty member costs the University less money.

Two things I haven't seen people mention:

Many States do a poor job funding higher education and instead opt to allow public instutions to raise tuition to cover the gap. Our institution had a fairly flat rate on tuition growth, but will see big increases in tuition as the State goes through with projected cuts to higher ed in the next few years. The money to keep labs and other facilities up to date comes from somewhere.

 

[boedicca]

Because they know that these days it's almost necessary to have a college degree (not everybody is an entrepreneur, in case someone wanted to respond with that), so it's easy to raise tuition knowing that students will still pay it.

That's like saying housing prices went up because people needed homes and paid more.

The truth of the matter is that we've had a higher education "bubble" fueled by government backed easy credit. The cost of education has risen far higher than what is justified by demand and inflation.

The Elite declared that everyone Had The Right To A College Education, regardless of merit or suitability of career objectives (much like government declared everyone had a Right To Own A Home - that worked out real well).

Colleges colluded in this mess by staffing up with financial aid counselors who advised clueless liberal art students to take on tens if not hundreds of thousands of dollars of debt, which conveniently could not be discharged via bankruptcy proceedings - for degrees with little economic value.

It was a big con that is now exploding.

The End.

 

[G.T.]

Dude please do not tell me that 2/3 goes to paying Teachers. Ok, so a teacher makes 75K....that's three tuitions for a class of X.....paying 25K/year....I'm not buying that.

 

[syrenn]

Supply and demand. So long as they have lines banging down their doors to get in, there is no reason to lower the costs.

 

[johnrocks]

For the same reason private K - 12 school would get very very expensive if you ever saw a government funded voucher system put in,

like what conservatives generally want.

Getting expensive?

 

[Cecilie1200]

If you all think you can stand a response that's a bit more thoughtful and less agenda-driven - military spread? Really? - this is what I found when I did some cursory research.

1) Half to two-thirds of the typical colleges budget goes to paying instructional salaries. So rising paychecks are indeed a factor in higher college costs.

The median salary for a full-time college educator is $46,300, according to the Bureau of Labor Statistics. The picture is brighter for those who have tenure: Full professors make an average $76,200, according to the American Association of University Professors.

Keep in mind, a Full professor making more than the median figure is probably funding a decent amount of his paycheck with grant money. That means that tuition money isn't going towards the higher end paychecks.

Grant money or not, half to two-thirds of a typical college's budget is still going to instructional salaries.