Why Are Tuitions So High?

  • Posted by a hidden member.
    Log in to view his profile

    Aug 10, 2011 10:59 PM GMT
    The field of education is ripe for disruption.

    http://www.investors.com/NewsAndAnalysis/Article/580954/201108091822/The-Higher-Price-Of-Higher-Ed.aspx?src=IBDDAE

    College students and their families have struggled to pay for the rising cost of tuition, a cost that has been driven in part by swelling administrative expenses.

    Over a 20-year period, the growth in administrative personnel at institutions of higher education has outpaced the growth in both faculty and student enrollment.

    Critics refer to this as administrative bloat and contend it shows that universities and colleges are inefficient institutions.

    Defenders say colleges are adding administrative staff to meet student needs.

    An IBD analysis of data from the National Center for Education Statistics shows that from 1989-2009 the number of administrative personnel at four- and two-year institutions grew 84%, from about 543,000 to over 1 million.

    By contrast, the number of faculty increased 75%, from 824,000 to 1.4 million, while student enrollment grew 51%, from 13.5 million to 20.4 million.

    The disparity was worse at public universities and colleges, where personnel in administration rose 71%, faculty 58% and student enrollment 40%. Private schools also saw administration and faculty growing faster than student enrollment, although faculties slightly outpaced administration increases.
  • Posted by a hidden member.
    Log in to view his profile

    Aug 10, 2011 11:10 PM GMT
    Riddler

    I've been noticing this myself for a long time and I compare it to the housing crisis:

    "Want a McMansion and can't afford the payments? No problem, you can qualify for an interest only loan and have cheap payments. It doesn't matter, you can always sell the house in a couple of years and make a bundle."


    "Want higher education? No problem, take out a government loan and have cheap payments for the rest of your life."

    I think the universities have no incentive to be fiscally responsible.
  • Posted by a hidden member.
    Log in to view his profile

    Aug 10, 2011 11:53 PM GMT
    vincent7 saidRiddler

    I've been noticing this myself for a long time and I compare it to the housing crisis:

    "Want a McMansion and can't afford the payments? No problem, you can qualify for an interest only loan and have cheap payments. It doesn't matter, you can always sell the house in a couple of years and make a bundle."


    "Want higher education? No problem, take out a government loan and have cheap payments for the rest of your life."

    I think the universities have no incentive to be fiscally responsible.


    Definitely - with the rate that tuition rates have increased over the past few decades, there are many who have compared it to a bubble.