Why Has College Tuition Gone Up?

by Comstone Cavella

Overview

The bulk of a student's financial obligation to his education, the cost of tuition has long been a concern for students and their parents. Though financial aid is available for nearly everyone, increases in tuition affect college choices and even educational planning.
Economic Cycles

In times of economic recession, colleges often lose money on their own financial portfolios and are therefore forced to find other means of raising funds. Though a difficult decision, raising tuition rates is the fastest way of strengthening the college's bottom line.

Capital Increases

As faculty positions become more competitive, a college will often provide increased salaries and benefits to lure a talented professor to the school. Similarly, providing the best library collection and laboratories, for example, places tremendous pressure on costs; tuition increases pay for much of these capital investments.
Student Expectations

Students want more from their college experience than ever before, and colleges are willing to compete for these students. As such, more recreational facilities, athletic fields and the newest buildings all add costs to the college's expenses.
Public Financing

Many states are choosing to reduce state financial support to public universities, leaving the college to find additional revenue. Many legislators feel that individuals receiving the benefit of education should be more responsible for paying for that degree.
Increased Competition

More colleges and universities are striving for "first tier" status -- a somewhat controversial label that indicates a highly competitive level of instruction and resources. As these growing colleges add to their resources, tuition often increases as well.

Overview