Why Are College Costs Rising?

The Truth Behind Runaway Tuition

Jan 17, 2009 Barbara Pytel

The assumption is made that tuition costs are increasing each year because the cost of education is on the rise. The Delta Cost Project states otherwise.

Family incomes are not rising but college costs continue to climb. Even after allowing for inflation and cost of living, college is now costing families a higher percentage of family income than it did in the past. Why are there runaway costs?

Delta Cost Project Reveals the Truth about Tuition Costs

The Delta Cost Project, a nonprofit organization based in Washington D.C., states that there are three major reasons college costs are going up:

• Reaction to reductions in subsidies
• Higher costs for administration
• Student support services increasing

These do not translate into a better education for the majority of students.

Public Universities vs. Private Universities

Public institutions are heavily funded by subsidies from states based on taxes. States collect taxes and redistribute funds based on priorities. Private universities are heavily funded by endowments from private contributors. While large state universities have had to tighten their belts, private research universities have increased spending by 10%.

Each state sets its own priorities on how much funding it will send to K-12 schools and colleges. This affects the price of tuition. This is why some students find college less expensive at a state university in a neighboring state in spite of paying out-of-state fees.

College Students Need More Academic Services

While many mandates have made college more accessible to students, this has contributed to the cost of college. Many low-income students have lower academic achievements and require remedial classes and tutoring. Minority students also require more assistance in being successful on a campus. Security is now becoming a major issue with rising random campus violence. Students with emotional problems expect colleges to provide counseling and emotional support. While all of these services are valuable, they were not expected in the past.

Colleges Are Cutting Financial Corners

State universities have tried to cut corners. They have had to since funding has actually decreased. In 2002, state universities were given $8,400 per student. Small endowments, contributions from parents and student loans were combined to pay for tuition, room and board. In 2006, colleges received $7,000 per student resulting in a shortfall of $1,400. Therefore, colleges raised tuition to make up for the shortfall resulting in families and students having to pay the difference. The colleges aren't really raising tuition. States are decreasing the contribution toward education at the college level and passing the costs on to the students and parents.

While students are paying more, they are not getting more. Colleges are tightening belts by having

• Fewer building projects
• Larger classes
• More part-time professors not requiring benefits
• Cutting programs that few students select
• Decreasing funding for research

However, if subsidies from states continue to decline, there will be a crises when students can no longer afford to attend large public universities. There is a limit to how much families and students can borrow. And, what will happen to the quality of education at public universities?

College Parents of America

There is a voice that speaks for parents demanding the end of this trend. College Parents of America has a full-time staff in Washington D.C. It is the voice of parents on Capital Hill. The president of this organization, James Boyle, says, "Enough is enough. The changing market for higher ed will cause colleges to hold down their expenses and state legislators to increase their subsidies." [Kim Clark, U.S. News and World Report, January 15, 2009]

Unfortunately, until that does happen, parents will pay more than their fair share of college expenses and students will borrow more money and go into the world of work heavily in debt.

Source: Kim Clark, U.S. News and World Report, "The Surprising Causes of Those College Tuition Hikes." January 15, 2009

Related article: College May Cost Much More in 2009-2010

The copyright of the article Why Are College Costs Rising? in Educational Issues is owned by Barbara Pytel. Permission to republish Why Are College Costs Rising? in print or online must be granted by the author in writing.

College Tuition Subsidies Declining	College Students Graduating With More Debt	Higher Tuition Is Not Buying a Better Education
State Governments Decreased Subsidies for College

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Jan 18, 2009 4:35 PM

Guest :

The solution to this problem is to engage 21st century marketing techniques and apply them to education. Andrew Jackson University is using a series of network marketing partners that have allowed the University to create the Sponsored Tuition program. Applicants to the University enroll through one of the partner sites and get access to a zero tuition plan. There is mandatory fee structure, but without tuition, the total cost per semester has been driven below $500 - and without any government subsidies.

Andrew Jackson University maintains institutional accreditation through the Distance Education and Training Council. (www.detc.org) The DETC is the only accrediting association approved by the US Department of Education solely for the purpose of accrediting distance institutions. AJU is a Title IV eligible school, but is not participating, which also eliminates another significant cost factor.

For more information go to www.sponsoredtuition.com

Jan 19, 2009 7:33 AM

Guest :

So, where are my tax dollars going if less and less is going for education?

Feb 24, 2009 8:28 AM

Guest :

the stimulus package is just going to make the future more painful.

Feb 25, 2009 8:19 AM

Guest :

What is going to happen to all of our small colleges that don't have deep pockets? Will they close their doors? What if parents and students just can't find the money to attend? The greed of a few has really had a nasty domino effect, hasn't it?

Jul 8, 2009 4:56 PM

Guest :

Government interference is the reason colleges charge more. Without government guaranteed student loans college enrollment would drop, causing the institutions to cut costs, making the price more affordable to students. Nowadays most students graduate with a mortgage but without the house... think about it....

5 Comments