As I had noted before, when I went to college the tuition in 1961 at MIT I believe was $700 per semester. Now it exceeds $25,000. Nothing has increased that amount in the same period. A 1961 four bedroom home was $12,000 and now may be $240,000. That is 20 time as compared to 40 times for college tuition. In my experience no college president has a clue as to the meaning of this problem, the keep draining funds from the alumni.
NIA states:
College is the only thing in America that never declined in price during the panic of 2008. It actually rose in price substantially. The annual tuition for a private four-year college was $21,235 in the 2005-2006 school year. Despite Real Estate beginning to collapse in late-2006, college tuition rose by 4.6% in the 2006-2007 school year to $22,218. Despite the stock market beginning to collapse in late-2007, college tuition rose by 6.7% in the 2007-2008 school year to $23,712. Despite oil and other commodities collapsing in late-2008, college tuition rose by 6.2% in the 2008-2009 school year to $25,177. Even after the Dow Jones crashed to a low in early-2009 of 6,469, college tuition still rose by 4.4% in the 2009-2010 school year to $26,273.
Now MIT grads generally add substantial value to society, as scientists and engineers, and than God we do not have a law school, too many out there already. But there are millions of other people in liberal arts programs which are for the most part baby pounds for pampered kids who have no direction in life. We always need a few philosophers and historians, but not the number we purport to educate. Again as I have often said I have hired High School grads over college educated people, they are bright, they learn, and the do not have an entitlement attitude.
As for the cost rise NIA alleges with some merit:
The college tuition bubble has been fueled by the U.S. government's willingness to give out easy student loans to anybody who applies for them. If it wasn't for government student loans, the free market would force colleges to provide the best quality education at the lowest possible price. By the government trying to make colleges more affordable, they have actually driven prices through the roof. Colleges have been encouraged to spend recklessly on wasteful construction projects, building new libraries, gyms, sports arenas, housing units, etc. Colleges spent $10.7 billion on construction projects in 2009. Although this is down from an average of $14.7 billion per year colleges spent on construction projects from 2005 to 2007, colleges are still struggling to pay off their old construction related debt. When interest rates start to rise, it will add further upside pressure to college tuition prices.
I would agree with the construction issue. Consider the Gehry disaster at MIT which replaced the wooden WW II Rad Lab buildings. Why spend so much and also add to operating costs, when a more plebeian building is better and less costly. One always wonders how much collective hubris drives these decisions. The NIA fails to also account for the explosion of overhead due to Government mandate programs and the like.
Bottom line, the world needs electricians and plumbers, you really can't outsource them, nor can you get one when you need them. Thank God my father made me work as an apprentice electrician, helped at MIT and helps at home.
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