Why does the cost of a college degree far outpace inflation and wages?
Since the 1980s, college costs have surged significantly more than inflation or median income. This video examines the structural drivers behind rising tuition, from declining state support to the expanding scope of student services.
The financial landscape of higher education has shifted dramatically. Since the 198 centuries, costs have risen by 213% at public institutions and 129% at private colleges [S2:p2]. Between 2008 and 2018, tuition fees jumped by 36%, while median income grew by only 2.1% [S2:p3].
Several mechanisms drive this inflation. A decline in state funding forces universities to replace lost revenue with student fees [S2:p5]. Additionally, the expansion of student services, such as healthcare and counseling, and the need to provide higher salaries for faculty contribute to the burden [S2:p4, S2:p6]. Some even suggest universities leverage increased financial aid availability to raise prices [S2:p5].
Source: Why College is so Expensive
