Will The Tuition Bubble Burst?

May 10th, 2011

 

Reminiscent of the recent stock market and real estate bubbles, escalating college prices are continuing to reach new heights. According to the National Center for Public Policy and Higher Education, average tuition in the past two and a half decades has risen by 440 percent, which is more than four times the rate of inflation. While higher ed costs remain untethered to economic realities, students with college loans to pay off continue to graduate into abysmal job markets. Under the circumstances, it’s easy to make the case that something has to give. The commentary is in U.S. News and World Report and Gay Clyburn of Carnegie Foundation.

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One Response

  1. Joseph Kaye says:

    I think the piece missing from this cursory look is the amount of state money going to colleges. If the state reduces its funding to a college by $x and the school raises tuition by $x, the cost of tuition has increased, but not the cost of school. I suppose it doesn’t matter to the student, but it does to the college. The cost of school and the cost of tuition aren’t the same thing.

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