Hyperinflation of College Tuition
From 1978 to 2008 the cost of living has increased 3 fold, medical cost have increased 6 fold, yet college tuition has increased an amazing 10 fold in only 30 years. Colleges have increased tuition costs an average of 4% each year during this time. It costs nearly 3.5 times as much to attend a private school than a public school, which is the largest markup in history. In 2008, a study was done by NPSAS that concluded the median cumulative debt for graduating with a 4 years degree is $19,999. One in four borrowed $30,000 or more, while one in ten borrowed $45,000 or more.
As quoted from Wikipedia: “A generation ago, students could easily pay for public universities without student loans, simply by taking a part-time job. Students today are an exploited minority, being taken economically taken advantage of because they lack the historic perspective to appreciate the inequality.”
When the economy is booming, private schools raise tuition and when tax breaks are given the public schools follow. Just recently our president has made attempts to give students cheaper more affordable ways to pay for college and the schools are raising tuition in tune, yet again. What’s in place to stop them? Students get $1,000 loan, they charge $1,000 if students can get $2,000 loans, they will charge $2,000.
Many school do not allow students to transfer all previous credit into their degree programs. A common practice is to disallow previous core classes to count as core classes, but allow them to count as elective credit. Schools sometimes don’t accept common credit from institutions located just miles away who are accredited regionally or nationally. Every class you take, every extra semester you are there, is more money for the school. It benefits them to allow just enough credit to keep the student interested in the school, but not so little that the student will apply somewhere else where they may accept more transfer credit. Some schools are better than others, no question.