Wednesday, September 26, 2012

Higher Education Bubble

It's no surprise to all of us that higher education is costing more each year than the price of inflation.  The news is filled with stories of students graduating from college with more than $100,000 in debt only to acquire a $30,000/year job.  At some point, people have to start asking themselves whether this debt burden is really worth it.

Increased price of tuition is something that I honestly struggle with when determining whether to give to my own collegiate institution.  It's really quite a scheme they have going on there.  Say for example, you want to be a good alum and donate some money that is strictly used for providing scholarships to other kids.  Well, that's just great.  The money goes into a fund that is designated to scholarships, and you are helping another student afford college.  The dirty secret collegiate institutions don't want to tell you is that they can just raise the price of tuition and thus making the price burden the same as before the scholarship.

The whole concept of school tuition is a function of supply and demand.  As the number of students who can afford to go to college (usually through the prevalence of scholarships) increases, the tuition will also increase to make it harder to attend.  In essence, the supply of college positions is limited and the spots go to the highest bidder.  This is why I don't donate to my college and never will.

Here's an interesting site I discovered recently:

It allows you to search for your alma mater, and input the year you graduated from that school.  It will then tell you how much tuition has changed since you left.  Plugging in my school, I can tell you that the price has gone up $838/year.  This just doesn't seem worth it, and I encourage high school students out there to search for colleges that provide the best value instead of the best name.  Unless you're going to make $80,000 or up after you graduate, there is no reason to rack up a bunch of debt.

Wonderful Moment of the Day: Just realized I haven't missed one day in my 3 posts per week blog record.

No comments:

Post a Comment