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Why college tuition keeps rising (Beyond the rate of inflation)
CNS News ^ | 09/23/2012 | Lynn O'Shaughnessy

Posted on 09/25/2012 2:11:58 PM PDT by SeekAndFind

(CBS MoneyWatch) For more than a decade, college tuition has been rising far beyond the rate of inflation at public colleges and universities. According to College Board figures, tuition and fees increased 5.4 percent annually above inflation in the decade since the 2001-2002 school year. Ouch.

A commentary that I saw from the Federal Reserve Bank of New York this week goes a long way towards explaining why students at public universities are getting pounded by soaring tuition. The main culprits seem to be state governments that have been ratcheting back their financial support.

Shrinking financial support for public universities

Here are some facts about why college students at state schools, which is where the majority of Americans receive their college degrees, are feeling the pinch:

1. From 2000 to 2010, funding per pupil at state universities fell by 21 percent - from $8,257 to $6,532 in inflation adjusted dollars.

2. Since 2008, when the recession hit, total public funding for higher education has declined by 14.6 percent.

3. Higher-ed support from states has varied dramatically. For instance, in 2010, the percentage change in public funding per pupil ranged from a negative 18 percent to a positive 16.7 percent. In California and New York, public funding declined by 11.6 percent and 7.5 percent respectively. The big winner was North Dakota, flush with energy money, which boosted its commitment to higher education by 16.7 percent, followed by Texas at 6.6 percent.

4. In every year from 2001 to 2011, at least a third of states experienced funding cuts and in more than half of those years, two-thirds of states did.

(Excerpt) Read more at cbsnews.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: bubble; college; inflation; tuition
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1 posted on 09/25/2012 2:12:05 PM PDT by SeekAndFind
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To: SeekAndFind
Because 18-year olds aren't smart enough to not bury themselves in debt if somebody offers them the opportunity.
2 posted on 09/25/2012 2:13:41 PM PDT by E. Pluribus Unum (Government is the religion of the sociopath.)
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To: SeekAndFind

And California has more admins than professors


3 posted on 09/25/2012 2:13:56 PM PDT by therightliveswithus
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To: SeekAndFind

Because Liberals want to start class warfare.


4 posted on 09/25/2012 2:15:23 PM PDT by Berlin_Freeper (God Bless America!)
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To: SeekAndFind

To keep the big fat union PIG pension funds alive? I don’t need to read the article.


5 posted on 09/25/2012 2:15:56 PM PDT by Obama_Is_Sabotaging_America
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To: SeekAndFind

Why college tuition keeps rising (Beyond the rate of inflation) ........ because the Liberal, Commie, Indoctrinator overlords are getting while the getting is good before the whole house of cards come crashing down ?


6 posted on 09/25/2012 2:16:26 PM PDT by American Constitutionalist
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To: E. Pluribus Unum

In California the Unions and Illegals have first dibs on the money. The students aren’t smart enough to figure this out.


7 posted on 09/25/2012 2:18:21 PM PDT by desertfreedom765
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To: therightliveswithus

No mention of college administration and staff costs or easy credit for college loans increasing demand.


8 posted on 09/25/2012 2:20:33 PM PDT by MulberryDraw (That which cannot be paid, won't be paid.)
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To: SeekAndFind

Because reducing expenses is not in the higher education lexicon - that’s why. Simple as that.


9 posted on 09/25/2012 2:25:00 PM PDT by AndrewB (FUBO)
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To: SeekAndFind

As one person pointed out, everything in the world has changed, except how education is delivered. You could transport a college professor out of the classroom in the 1850’s and put him into a modern classroom and he could carry on teaching without much trouble.

I think this is about to change big-time. There is enough information on the internet that a person can easily educate themselves 70% of almost any college or tech degree and the other 30% they would then need classroom instruction.

In the near future, it’s possible to also have sophisticated simulations that can basically replace a teacher entirely.


10 posted on 09/25/2012 2:27:27 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: American Constitutionalist
...because the Liberal, Commie, Indoctrinator overlords are getting while the getting is good before the whole house of cards come crashing down ?

Especially since the SAT scores are the lowest in 40 years in the United States?

Bleed the students dry in college and then send them out into the world just as unqualified as they were when they entered college?

-PJ

11 posted on 09/25/2012 2:28:10 PM PDT by Political Junkie Too ( It doesn't I naturally when you're not natural born.)
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To: SeekAndFind

Why do colleges raise tuition faster than the rate of inflation?

That’s like asking “Why do rock stars sleep with porn stars?” or “Why do professional athletes date supermodels?”

Because they can.


12 posted on 09/25/2012 2:30:26 PM PDT by servo1969
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To: SeekAndFind

Lord I hope tuition keeps rising beyond inflation rates. That means the death of higher education as we know it and that is a good thing. It means students seeking options that give more bang for the buck and overpayed tenured liberals losing their audiences.


13 posted on 09/25/2012 2:36:32 PM PDT by FlipWilson
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To: SeekAndFind

Same reason why the housing prices sky-rocketed back when.

EVERYONE should be able to have a home/college-education.

The government will provide easy/cheap loans so everyone can have a home/college-education.

And everyone is off and getting those cheap loans to get a home/education, thus increasing the demand.

Of course this is an artificial demand. And when those cheap and easy loans finally needed to be paid for those houses, the housing market tanked. Coming soon to the education business. Although it will still be awhile before the prices come back down. I’m guessing probably the year after my last kid graduates :(


14 posted on 09/25/2012 2:43:49 PM PDT by 21twelve (So I [God] gave them over to their stubborn hearts to follow their own devices. Psalm 81:12)
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To: 21twelve

Great post

Here’s the BIG EDUCATION cycle:

Govt provides virtually unlimited cheap money for students to borrow
Schools raise prices to soak up funds
Schools pay admins and profs large salaries
Admins and profs donate to Democrats

and repeat


15 posted on 09/25/2012 2:47:07 PM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: SeekAndFind

It’s no accident that the two fastest inflating sectors, healthcare and education, are the two sectors the government pumps massive amounts of money into.


16 posted on 09/25/2012 2:50:22 PM PDT by Hugin ("Most times a man'll tell you his bad intentions, if you listen and let yourself hear."---Open Range)
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To: SeekAndFind

This woman is essentially saying that tuition’s rise because the taxpayers won’t cover whatever the the college wants to spend. No, tuition rises because the colleges don’t want to control what they spend.


17 posted on 09/25/2012 2:50:48 PM PDT by Old North State
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To: Jonty30

Shouldn’t this be a golden opportunity for someone to take advantage of in the free market? Why can’t conservatives create much cheaper colleges that will provide educations without the slant? Are there true costs keeping the price high or are there barriers to entry for new institutions?


18 posted on 09/25/2012 2:51:14 PM PDT by JediJones (KARL ROVE: "And remember, this year, no one is seriously talking about ending abortion.")
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To: JediJones
are there barriers to entry for new institutions?

I'm not sure how biased the various accreditation boards are vis a vis politics.

But you will always have the MSM running stories about which are the "correct" schools to attend......

19 posted on 09/25/2012 2:53:47 PM PDT by nascarnation (Defeat Baraq 2012. Deport Baraq 2013)
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To: SeekAndFind

They have to pay for all those condos they built for students


20 posted on 09/25/2012 2:55:00 PM PDT by Despot of the Delta
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