How Public Universities Became So Expensive | WSJ
2021 ж. 22 Ақп.
359 763 Рет қаралды
Tuition at America’s public universities has nearly tripled since 1990. With President Biden looking to ease the burden for some students, experts explain how federal financial aid programs can actually contribute to rising costs. Photo: Storyblocks
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My business professor always told our class, "Colleges are becoming businesses rather than institutions."
Yea, because they had to adapt to no funding from the government.
Actually they are becoming amusement parks rather than being education centres.
they are 100% businesses lol. maximizing profits by incentivizing students to take out as high of a loan as possible with high end gyms, shuttles, mew buildings, yada yada. the students can pay basically any amount, theyre using governments money. so just make that amount as high as possible.
@@harivatsaparameshwaran4174 , 100% agree. I remember back in Tokyo, my teacher used to bring us (pre-school students) at 東大 (University of Tokyo) Campus so we can play around. After moving here in Vancouver, I go every weekend and jog at the University of British Columbia (UBC) campus.
That is probably the only true statement ever uttered by a biz prof.
Why US Colleges are expensive? Because education is not their first priority.
exactly, it’s not about learning anymore. it’s about perks, stadiums, libraries, buildings, etc etc
Very true
It's because of student loans which incentivize universities to charge insane prices.
@@catballsefv34 and whats crazy is that its already unaffordable.
higher learning has become higher earning
“Every student has a voucher to pay for school” what a way to call loans
The government burdened us with this "voucher" which stops college graduates from participating in the economy. The way to lower prices is to make student loans illegal and force universities to participate in a capitalist society where $70,000/year tuition should be laughed at. Instead the socialist government hands out loans which are never going to be paid back. The government is the real culprit. American students are sadly the victim.
@Nelson Swanberg "Nobody makes anybody borrow for education" How are people supposed to pay 100s of thousands of dollars in tuition? We now live in an economy where college is practically mandatory.
@Nelson Swanberg No one forces them to get loans, but society pushes them into poverty if they don't go to college.
He said something very important right after this sentence you stupid
@Nelson Swanberg but those kids are very young to make rational decisions and then we've government who has made it easy to get cheap government loans..... And topping on it that universities has stopped competing against each other because students has cheap money to pay through student loans
When anyone can take out a loan, universities have no incentive to keep prices low
Bingo
Good point
Yup, that's the cause. If their limits on thost loans than universities have no choice but to stay in reality.
Yes loans provide incentive to raise prices. But that does not mean they have no incentive to lower them or that incentives to lower them can't be found.
@@peterisawesomeplease Simple. Limit the loans. If schools know how much loan a student will get at most, they have no choice but to price accordingly. Can't charge for $50,000 students loans if the government only gives $10,000 lons.
Remember that this is for public universities. Private universities can cost 3x more!
More like 10x more
More like 100x more
not really, if you are out of state, it will get the same as private uni tuition.
And with similar or higher rates of tuition inflation.
Uh no 5X or more
Universities stop wasting the money I saved for college, I need cheap tuition, not an expensive looking campus
But if there's no expensive looking campus, the students don't come, loan money don't come
Too bad students won't come to a "cheap" looking campus.
Find a cheap looking school to attend
@@nicedurians That's sarcasm right?
They want money. Also you will agree with everything political that they say if you want to get your degree and not fail classes.
I went to a community college, transferred to a university and graduated with 7k of student loan debt and paid it off in one year. Although I didn’t go to my dream school, I am doing just fine now
Amazing, what do you do
Ram M, I did the same, community college part time for 4 years while working full time, then went to an out of state university, it was cheaper than my state's university. I graduated with $900 of loans to the school and 3k to my parents, all were paid within months. This was 30 years ago. Like the banks said, they got out of the student loan business when the feds go in and that is when schools started raising their tuition.
Doing the same right now. Just makes complete sense financially to do this
yep, that's the secret, it's pretty common in the Asian community
that’s what im doing. i go to a community college, hoping to transfer to one of the universities in the area, shouldn’t have a ton of loans
I attended a very large public university over a decade ago and all the buildings I had classes in were, all concrete, kinda ugly but in good shape. That's why I was very surprised to learn that a few years ago they knocked most of those buildings down and put up shiny all-glass brand new buildings. What a waste of money and it explains why the costs have gone up so much every year.
Because they compete for student enrollment on the basis of perceived value, not real value. It works great because their target demographic is 18 year old kids from middle class families on a high from the the college hype that our culture has groomed into them. That’s why making 2 more years of free public education is perfect. More time to mature, learn, and transition effectively into post high school reality.
@@mthulhu also the fact that people can't know the real value unless they enroll anyway.
@@mthulhu i agree. County colleges should be paid by taxes same as high schools. Then 4 years schools can turn into 2 years schools (for some students at least) so you only focus on taking actual major courses in college, and not the general classes.
@Alpha Omega There's obvious advantages of in person learning. Sitting at home all day watching zoom lectures is clearly not going to help you learn as much. Being physically present in class is much more engaging. It's better for your health, you can interact more with your professors and classmates. The change in scenery and the routine of going from class to class is much better for time management and focus, especially if you have ADHD. With the pandemic I can see first hand. Everyone is getting lower grades and failing exams because it's harder to remember things. People are depressed. Online learning sucks.
@Alpha Omega Yes I do, I am a college student. I use KZhead all the time to revue things and summarize information. But you cannot reach any level of expertise just by sitting at home and surfing the internet. In person and hands on learning is necessary because most jobs are in person and hands on. Not only does in person learning lead to better academic results but it prepares you for the real world.
7:28 "Experts say that a consensus has emerged: costs for college are too high" what would we do without the experts' unparalleled sharpness.
They showed U Mich's $40k online masters degree as an example of "inexpensive" online degree lol.
that's $40k is for the whole degree, not just an annual tuition. It's still 50-70% cheaper if you compare it to out of state tuition.
I paid $3,500 a year tuition at Michigan per year for an MBA in the 1980's out of state (it was a two full time year program), and they loaned me the money over 10 years interest free -- all I had to do is ask for the loan. I entered at age 21. That was $700 a year to pay back the loan I understand full time tuition is over $60,000 a year there now.
That's actually cheap by the standards of data science MS programs.
I desperately wish my college would stop investing in recreation and facilities. and focus on their staff and programs and reduced cost.
Just get rid of the athletic and sports programs and they can save millions per year.
@Jb berry basically every college
Colleges don't need these extras like sports, recreation centers, and other fun things that colleges have. It is costing colleges millions of dollars every year. Colleges need to focus on their programs and helping educate students for the job market.
@@bluehotdog2610 students dont live in the college. They go there for a degree
@@jordicarvajal2834 lol ok boomer.
StateU: We need more taxes Taxpayers: Okay you got your taxes, will tuition go down now? StateU: lol
Everyone can get a loan, therefore is “willing” to pay a higher fee. Sounds right when it’s luxury product industry. Sounds robbery when it’s education.
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Well, this *is* the Wall Street Journal so you can really only expect it to publish elitist lies.
"Everyone can get a loan." Sounds familiar to me to something around 10-15 years ago.
Government should support technical and vocational schools so that students who don’t wish to go to College have other options like they do in Germany.
Yeah, like we should be training for a job not a degree.
That makes too much sense. Therefore they'll never do that.
Lol UC Berkeley the biggest scam ever, they “prestigious” but u can’t even talk to a counselor😂
And they teach activism not education.
@@swesleyc7 You're sure about that?
@@albertjackinson Very. They teach students *what* to think, not *how* to think.
Check the boxes, get a degree. Need an advisor to read the check list?
@@swesleyc7 if you can't think you probably can't get into any college to begin with.
Education is a business, business is solely concerned with the generation of PROFIT>!
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@Brendan Moriarty no.. just regulated.
A business that believes Socialism will make them the influential caste.
How would the staff eat otherwise?
A business that doesn’t pay tax’s remember that each university makes billions and pay no tax’s, no property tax nothing
It's more like 4 years of theme park than collage
Go to school so that you can learn to spell correctly.
@@pilotsora collage collage collage collage collage
Easy College loans made it possible for Universities to raise fees, and use that money to build big stadiums, student centres etc.. Shut down the current college student loan program, make state pay for education, fees will start to drop.
There's no need to do that. The government can already set the price to whatever they want and the universities would be forced to comply.
DO NOT GO TO COLLEGE UNLESS YOU KNOW WHAT YOU WANT TO DO AS A ADULT‼‼ GO TO A COMMUNITY COLLEGE IF YOU DONT KNOW WHAT TO DO IN LIFE
Although there are stuff like research experience that you can only get from doing all 4 years of college.
I've been saying this for years. Families don't spend enough time with kids discussing the future and all of the options.
community colleges are rising their tuition to become more competitive with state schools though. college is just expensive all around which it shouldn’t be
I would also start looking at the administrative salaries.
Yes, this is the answer: the pricey, non-faculty, mandarin class of administrative bureaucrats.
‘Students will be willing to pay’ No one is willing, everyone is forced!
They forced you !?! How?
NOBODY ever put a gun to a student's head and forced him/her to sign the dotted line.
Every student is required to take a large amount of classes that had nothing to do with their majors. Eliminate that requirement and the cost of education will go down
I’ve been saying this for years why do I need to pay for a history class when I’ve been learning about US history since first grade to me it’s pretty much covered and don’t forget college algebra what will a student learn extra in college algebra.
@@newmoneymarcus college algebra was literally the same thing I did in 8th and 9th grade. Meanwhile, someone is studying culinary arts and has to take these random classes
@@newmoneymarcus Yeah, gen eds just seem strange. I haven't been to college yet, but I've heard people say "the first few years are just a repeat of high school". Aren't college supposed to be for specialization? So many money games in this system....
@@prayagsuthar9856 they are a repeat from highschool, but highschools aren't really standardized, the grades are more subjective than you might think. It's not like every highschool is equivalent to the world's most elite boarding school. They don't actually know if you deserve an A in English. Because they don't know what you were graded on. An "A" in 12th grade English SHOULD mean the same at every school, but it doesn't.
The real question to ask is what were administrative costs 30 years ago compared to now?
You're asking the right question, Jim. Surprised the video didn't even touch on this point.
Stop subsidizing liberal arts degrees with no demand for them and watch the tuition numbers drop.
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Same in my country, college is only for the have. I wouldn't call my family rich, but my parents had enough to send me to college. Then stuff I had learned in college eventually was not in use, though. My interest diverged on another province and I learned it online, now I work at 1 of prominent companies in my country doing it.
It has become glaringly obvious, even to the most casual observer, that getting a college degree is no longer worth the decades of financial struggle one must endure to pay back the student loans.
So there's a university study to find out why universities charge more tuition?
Public flagship universities have morphed into semi-professional sports programs with schools attached to them. The amount of resources spent on college athletics in American universities is staggering. Honestly, most of the useful skills you actually need as a functional adult can be obtained at a community college by taking math, science, and english composition classes. A batchelors degree is actually useless for most people unless they are doing STEM, medicine, getting a professional degree, or want to teach the subject. If you want a general education, just get an Associate of Arts at your local community college and then enter a vocational program that you can actually earn a living in.
because colleges are now 4 star resorts w pro sports teams and facilities, with millionaire administrative staff
My local school hired someone from Harvard at the rate of over $500K a year. They claimed they needed to beef up their programs...... waste of money
Yeah, colleges are starting to turn into 5 star resorts and the new Six Flags. These are costing colleges millions of dollars every year. These are some of the reasons why tuition is rising. Probably public universities will be close to $20,000 a year by 2030.
@@jordicarvajal2834 Public schools go up about $1K a year. Anyone with good parents that knows the game should send their kid to a public school. You either go Ivy League or Public, no in-between expensive schools. In the end it's all about how well you play the Corporate Game and Brown Nose 👃!
More people should be going to trade schools rather than getting useless degrees.
I have a $200,000 sociology degree. Doesn’t matter who is paying for it, it’s still too much money. The cost of tuition has to come down, that’s the answer. How is the bigger question.
You must have a few Master degrees or a PhD for that price tag?.?.
Not trying to come at you or anything but 200k for a masters in sociology sounds like it was lot of bad decisions instead of the problem of college not being free
@@jonathanalvarez3875 You’re blaming the individual for the issue when it is the system that has issues.
@@SkateDriveways the system does have issues but at a certain point on has to question the individual choices. At some point, one has to ask if paying that much money for a degree which wouldn’t make you the return which you invested was a good responsible choice. Look at investments for example. One could invest in low risk steady yield portfolio, or one could try to get a higher rate of return on your investment on a riskier portfolio. When a recession hits, as rotten as wall street is, who’s fault was it to take on the riskier portfolio which ultimately failed? Yes I do agree colleges are way too expensive but some of the blame lies on the people not treating colleges like a consumer product, even though colleges are well aware that they are a ultimately a business. If people started treating colleges like a consumer product, where the return on investments and risks are weighed against each other, as well as the quality of product (degree) you get from that said business(college), colleges would be incentivized to start cutting costs and applying their funds elsewhere where it’s more needed. Moreover, the huge demand on a college degree will starts decreasing since people will find other methods of living a financially comfortable life regardless of the stigma that comes with not obtaining a college education.
this guy is probably lying. Sociology degree doesn't cost that much. (unless you are in the Ivy League)
Off the top of my head: - it doesn't matter how much it costs, people will still take out loans to go. - staffing has increased big time in the last generation. - and yes, the additional stuff that makes you feel like you live in a resort certainly costs money.
Go to a local community college or do 1-2 years at a local community college before transferring to a larger university. I got my degree at a community college and tuition was paid for all through financial aid and grants. I even got $4-5k leftover per semester after the tuition was paid. I don't have the highest salary($60k) but it's enough for me to survive in NY, most importantly I don't have to carry tens of thousands or hundreds of thousands in debt.
When you have guaranteed loans, this doesn’t encourage lower cost education.
"answer is subsidizing " try being an international student 😖.
" is this all worth it ?" made me rethink my life
I hate normalizing spending future earnings on present goods. The norm of the 30 year mortgage and rising home prices and student loans and rising tuitions are the worst... Also the privatization of loans.
The cost of my undergraduate university has gone up over 10 times since I graduated almost 25 years ago. When I was in my doctoral program the tuition went up from $1800 per class in the beginning (no that isn't a typo) to (and I'm not joking) $2700 per class in the end. An increase of 33% in about four years.
7:22 Some of those sites are really sketchy. A lot of those classes aren't actually designed or seen by the university. The website made it and payed the university to put their logo next to it to make them seem more prestigious than they really are.
There is a simple enough fix that's done in most of the English speaking world - make state funding of universities tied to conditions such as caps on tuition. The issue isn't that the federal govt. pays for higher education - it's that the govt. provides "free money" - there need to be strings attached, namely caps. There can still be extremely expensive private schools (there always will be) but state schools must choose either to A) operate like a private school and take very limited state funds or B) operate like a state school and cap their tuition. And to quibble, the WSJ ignored the enormous increase in administrative costs at public universities - some blend of inefficiency and corruption that's probably responsible for at least 20% of the incredible increases.
If u don’t go, you shouldn’t pay for it with taxes. Those “non profits” are very much run like a business. Price should come down and be accounted for!
Cap tuition for public colleges and universities. No reason why school should cost $30k a semester up. And let’s be honest as well. Not everyone should go to college. There are so many majors and studies that honestly can be done without a 4 year university.
Woah that overprice where you go to school. My university charge 6k for tuition.
In 1972 my parents paid $6,000 per year for tuition, room and board. We thought that was really expensive
Education has become like real estate investment, where you are encouraged to borrow money to bid up the prices.
@1:22 Or, you know, increase state funding (that also places caps on tuition and increases tuition subsidies).
Exactly. The report opens with evidence that the cost of tuition has shifted from state to individual... then blames federal subsidies. This has happened in the last 20 years. What about the post WWII GI Bill?
Because the Govt would rather use taxpayer's money to bail out failing companies rather than subsidising education. Also, most of these facilities are also enjoyed by European universities but they don't have such an astronomically high tuition fees.
What about military
Too many, way too many, people try to go to college who only got a high school diploma because we refuse to fail anyone. The graduation rate for four year public universities is 33% and half of those who do graduate still can’t do long division or speak a foreign language well enough to order a meal. A college degree from a public university, unless it’s a math or hard science degree, is useless, and employers have realized that.
Nice to see some peer-reviewed research, citations, and analysis in a KZhead video.
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In the UK, university fees are capped at £9250/y (~$13000/y). These are paid by "student loans", which are really a tax of 9% on income earned over £25000/y after graduation. These "loans" are also written off after 30 years. The main issue with our system is the Maintenance Loans. These are what you live off of and are paid to you directly. They are tied to parental income, with a max of ~£8000/y and min of ~£4200/y. Accomodation often uses up all or most of your maintenance loan. This system is ok..... apart from the ticking time bomb in the government's finances, when tonnes of these "loans" get written off in the 2040s and 2050s
you can cap it like that in the UK because you don't have a football stadium, with million dollars football team staffs and coach.
Well "capped" truly means still raising and not really "capped". I read an article that the tuition fees were introduced in the 90's to "improve the quality of education" with a cap of ≈1.000£ per year. The argument is/was flawed because you can reuse the "improve the quality of education" argument endlessly and end up in a spiral of raising the tuition fee cap. Just do it like the EU, tuition-free education.
I was shocked at how colleges had changed. I went to a college in the early 80s. Even back them the college were fairly spartan. I can remember a meal of meat loaf, gravy, and potatoes in the cafeteria. One student dryly commented "this will stick to your ribs". Fast forward to 2019... there was a sushi bar and my kids tuition was over $400/credit hour.
It really makes sense when you look at how the market works. How the latest smartphones add no real improvements, just cool aesthetics, then jack up the price a few hundred dollars and remove the cheaper alternatives. The market isn’t interested in producing better quality, only better “products.” Because at the end of the day, their *only* goal first and foremost is to make money.
Thank you for supporting the Georgia film industry with your B roll.
It's all becasue of student loans, inflation, and having more admissions councelors. John Stossel already covered this.
It's very similar to real estate. If you make mortgages more affordable, you just drive up the cost of housing. Student loans are essentially mortgages for education. The only way to alleviate the issue is to provide real alternatives.
I think the key should be to make 2 of 4 years completely online and then for advanced and hands on coursework students can actually move to campus for the last two years
Not a bad idea. For those who really don't mind not sitting in a classroom, they can still get the lecture. Instead let them school hire TAs to grade papers for 300 student classes. Even with that cost, it brings the total cost down.
I like the idea. What can be added for the missing social aspect?
There is no demand for that though. 18 year old kids don't want to spend 2 more years at home with mommy and daddy.
The thing is, even if colleges spend all of this money on "fun" things like rock walls, no one can even use them now. Students are either at home learning online, or on campus with no activities available due to COVID-19. Yet the tuition is exactly the same. As a college freshman this year, I am realizing more and more how dumb this "college experience" truly is.
I dropped out of college when I was 18 and then joined the military shortly after. The tuition for the semester that I didn't pay for loomed over my head for the 4 years I was in the service. When I was done with my time in the service, they came after me. But I was prepared. The bill was only a $5k+. I had saved enough money to pay it off and I had a disability pension from the military. - Side note - For some reason, the debt collection company wanted to destroy my credit. I offered to pay it all of from my bank account, they weren't having. But obviously having the money, I told them to charge the $5k on my credit card and I payed it all off as soon as it posted on my credit card account. -- My thing is, at 18 y/o, I knew that I couldn't afford college so I quit. I found something else that was a lot cheaper (financially) then college. I think 18 year old's get so caught up in the college hype and forget that they're now legal adults and will have to do adult things, like reading over their loan papers and thinking about their financial future. In our society, we think of 18 year olds as kids still but we're telling them they're also adults. This double standard has to stop because things like student loans happen.
Collectors are straight up bullies. Once they got a bill with your SSN attached to it they come after you, even if the debt was illegitimate. They don't give a f***, they just want money. I don't feel bad telling them to f*** off and sending them subpoenas to court. They should know it is "part of the business".
Public universities should go back to being free the way they used to be - and were MEANT to be. That is the way it is in most of the civilized world.
You can pay the trillions all these corrupted politicians make than
I graduated couple years ago, I got 3 degrees, so I am certainly done with my education. Reflecting back my journey in university, it is worth it only if get a good paying job after graduation. So, expect hard work, take every opportunities to gear up resumes, certainly not imagine campus is a Disney world.
Wow, you've got 3 degrees and still looking for a good paying job? well all i can say is welcome to the real world chump. lol.
@@4evertrue830 well, what can I say, if there was a good paying job after my first degree, I wouldn't go back and get 2nd and 3rd degrees.
Go after a good degree*
@@chelsea7xhf what degrees did you get if you don't mind me asking?
@@mariumriaz5 yeah, I got 2 engineering degrees 10 years ago, MBA 3 years ago
There’s gonna be point where all these scholarships and grants can’t even reach the tuition.
Hold up. Do scholarships and grants pay for tuition now?
@@totallynotme6720 Depends on where you go and what type you have, but for the most part: nope, you'll have to pony up and get a loan.
“Government money has made college prices high, but this new plan to spend more money will definitely pay for itself.” lol
You're ignoring what is *in* the plans. The past was for loans. Biden's plan is different.
What a coincidence, I intended to attend the University of Oregon in-state this fall but couldn’t stomach paying 24k a year. Currently at a 2-year school working a part time job to save for when I transfer for my final 2 years at a different local 4-year University (that doesn’t charge 24k).
Should've gone to Oregon State Beavers
Degrees for S.T.E.M. degrees should be given a priority for any aid or fee reductions.
Amazing idea and extremely necessary.
Stem, medicine, and technical degrees should be reduced b/c they're more necessary IMO. Maybe teaching too.
I would go even further and follow the German approach. In Germany if you don't have good high school grades you go to state funded trade school/apprenticeships.In the US if you have bad grades you can take your government loan and spend it on pretty much any BS degree you want and at a very expensive school. Germany generally pays for 100% of education after high school but if you want to choose your field you have to do well. If you don't do well you get an apprenticeship instead. And thats not a bad thing. Those jobs pay a lot and really help the economy compared to getting a liberal arts degree from a community college.
@@peterisawesomeplease I would love to have some type of nationwide apprenticeship program in America. I rather do that than study tbh.
housing food and transportation. and the degree should all be paid for by the government so the students can focus 100 percent energy into their studies
I would like to add that many students are forced to take credits in classes that deal with information they will NEVER realistically use in their future workplace. A BA in the sciences can take up to 5 years if you include all the credits that don't include relevant information. It's also an issue that students are generally forced to buy textbooks that the professor should be replacing with material he or she writes instead, essentially dropping the textbook costs to 0. Another issue is that learning no longer requires a classroom. You can learn almost anything over the internet if you want to. There are a lot of examples of how college costs could be kept down. Unfortunately, there will be pain in changing colleges to bring down educational costs and Americans can't handle that.
Education is valuable. Well intentioned federal programs having serious and severe unintended consequences. Instead of agreeing to tuition prices set by schools, agree to a fixed rate of support for schools that will accept that rate. Lots of analogies with healthcare.
It boggles my mind how someone calling himself an economist can say additional subsidies will not cause prices to go up when we have 60 years of that hypothesis being proven embarrassingly incorrect.
Well, I don't know much more about US universities than the information given here, but in many countries in the EU, university is subsidized 100%.And it works just fine. I go to one of the top three unis for engineering in Germany and only have to pay 100€ for the student body and stuff and 200€ for a bus and train ticket for me entire state. Per semester that is. Plus subsidized student dormitories. Many countries like Denmark have even better conditions
Why not cap the maximum tuition fee a university can charge per year like in the UK?
Why would they? Universities can charge more money to make more profit, the banks get more interest payments, and the politicians can use these “solutions” to win over the younger demographics.
It's the sports- education complex. Just as bad as the military industrial complex.
Glad tuition reimbursement was an employee benefit when I was in school. I never wound up using the degree because I hated the field by the time I graduated but at least someone else paid for it.
These explanations from the Wall Street Journal Economic reporter are basically ridiculous. The reason that tuition has gone skyhigh is because of federal government backing and state tuition which has guaranteed all sorts of loans for students, allowing them to bid up the price of tuition. The idea that families are taking on this expense is ridiculous. Families are taking out all kinds of student debt because they can’t pay for it! Not because they can.
In China, you pay about 1000$/year for study in a university on average, which covers the housing and textbooks. I used to be a TA in Washington, one of my students lost his textbook, which costs 300$, I tried to find that for him, but when he realized that someone took that and might not return, he cried, I told him that he might not need that textbook if he just used the lab manual I gave him. I was shocked and felt sad for him. He took one year off after that semester and worked in Safeway, his family did support him much.
Aren’t books available for free in the library? (While you’re in there)
@@sid4752 there are not many textbooks available for browning, that is a physics textbook. Every semester, more than 300 hundred students will take that class as it is required for all science and engineering students.
Colleges could raise prices because at essentially double the rate of inflation, the cost of tuition was still within expectation of what one would pay. After three increases, parents/students wouldn’t have to worry about continued price increases - unlike the case of other good/services like food or housing. So there was little desire to resist price increases, especially since a well-paid job was expected. However, people finally woke up and realized how incredibly expensive college had become - while observing that there was such a large number of graduates that the number of jobs was insufficient for people holding college degrees. This is how those price hikes, which wouldn’t happen anywhere else, resulted in a drop in college attendance.
Not all schools are raising tuition. Purdue, a top tier research university and the founding school of the BIG Ten, has not raised tuition since 2011. It is seeing boom in enrollment, rising rankings and other positives.
Coursera: ***my time has come***
I was born in the third world country of Mississippi, educated at Mississippi State and graduated with a debt of $150.00, yes $150.00. Every dime of my education I paid and was glad to have the opportunity. Things have changed since I graduated in 1966. Frivolous spending was not allowed and tuition was reasonable. Now we have extraordinary stupid policies, far more expenses than necessary and a bloated college staff. I am 79 years old and glad I was never so simple minded as to cause my own demise. The only position I take is those brainless college administrators coupled with state legislatures has caused a huge cost burden to the students and untimely the tax payers. What kind of a nation have we evolved into? Are we completely stupid? Probably!
How much education do you really need to work at Walmart or Amazon?
If you exclude most of those facilities, extracurricular programs and other accessories, private university tuition such as Harvard can be as low as $50,000-$60,000 for a 4 years bachelor degree or around 75% cheaper.
Simple keep big government programs out of these universities, and then you’ll start to see the tuition prices drop. Big government policies barely work for certain situations such as this.
Public universities are becoming more expensive? I thought they were free... Oh wait, this video is about the greatest country on earth
LOL
Colleges should not be free. It wouldn’t solve the unemployment/underemployment problem, have colleges rake in more cash then those fat pigs already are, and saddle us with a ridiculous debt burden.
Hey bud those taxes must be higher than someone on acid and weed
@@prxhcision1597 Taxes in the US are low? Where's California located?
@@prxhcision1597 And I guarantee you, it's not easy to find people in european countries with high taxes but plenty of services that believe they'd be better off in the US
As an out of state student who applied to UO, the price is a huge barrier, especially for what you get
Also the publication failed to mention, many professional school such as med school, business school or law school are charging premiums to subsidize the cost of low tuition undergraduate programs and other operation cost.
I like how rich countries are discussing "what is going to happen if we give the money?" instead of "where are we going to get that money?"
Government: Money Printer Go Brrrrrrrr....
it is simple the US just haven't figured it out yet. well they are 50 years behind on climate. just give them time they will figure it out eventually
Public university teams have athletic teams and stadiums???? F that.
If you read about the University of Chicago, they eliminated the football team because it was absorbing too much cost and distracting the students. That's why it's now one of the best universities in the US - they decided to focus on academics.
Answer: administration /obscene profit , and the highest priced universities are the ones that have so many extra sources of income
In comparison IIT Madras charges Rs 3000 (40 dollars) per semester as tuition for its programs in basic sciences for everyone. In addition to that I pay Rs 24000 (324 dollars) for campus accomodation per semester. That is what you would pay without a scholarship. Roughly 15 percent of my class got the scholarship and the tuition fee was waived off. Jai Hind!
"Upkeep on facilities" that's a good way of saying embezzelment
"This program will pay for itself." How many times have we heard that? The issue is, once the program is in place, new perverse incentives will emerge and the Power Players will game the new rule set.
Ding ding ding! The incentive still exists which will allow a new expensive "problem" to arise, which we all must then pay for. Naturally those same power players will be ready to "solve" it, and the feedback loop goes unaddressed and willfully ignored.
Thank you for the informational media and research. However, would it also be possible to include research materials/information regarding the decrease in school fundings (treasury branch) etc. instead of possibly misleading the viewer(s) from thinking that the main cause is from financial aid? (Room for improvement). JTK, 2021-02-25, 1025, learner.
I went to a very good university about a decade ago. I wanted to do engineering research and never recieved funds. Later university invested to construct football stadium and a museum in an amount that could have helped graduate several engineers who would have contributed to the economy. Speaks about corrupt decision making in higher education institutions. Perhaps deans & BoGs need to be educated that it is important that student graduate with better knowledge than go see football matches.
WE have to voice our displeasure! Many local schools do very little to prepare their students for college. Secondary education should expose the children to a variety of careers. This gentleman is 100% correct about the cost of an education. The average student leaves college having 40,000 dollars in debt. Vermont leads all states with an average tuition cost of $29,541 for in state students and $41,145 for out of state students. Private college expenses are 72% higher. The average college student will have close to 40,000 dollars in student loan debt. Meanwhile, the average FBS college football coach earns 2.89 million a year according to USA TODAY. College coaches salaries are led by Alabama's Lou Saban who earns 9 3 million dollars a year to coach football. College Presidents make more money than any elected or appointed public official including the governor of their state. The distinction for the highest paid president belongs to USC. His base pay is 1.467 million dollars. Each year the cost of their additional perks (like housing) increases. The USC president recieved 5.487 million in additional perks. I have no problem with the aforementioned professionals earning a decent wage but there should not be such a deep economic chasm between the students and these college employees.
the worst ROI in my life is : attend expensive university
yeah we need to encourage community colleges first and trade programs
All those scholars and professors talking about income inequality and wealth disparity, never willing to stand up to call out on the ridiculously high costs of college tuitions...They ain't standing up because they need to secure their bag..
Most college bound students would want to attend their State’s D1 Prestigious Colleges through traditional reasons but I also see the profit off the surge of increasing spending on Football/Basketball programs
Ah it's always the US Education system. Thankful that I have the chance to avoid US all together for my education
I feel like people come at college too hard. Yeah the piece of paper may be over priced at this point but you get what you make out of it. If you’re paying only for the courses you take you’re wasting your money. The value of University is at the basic level what you learn in class. What is more important is leveraging yourself into a career through relevant internships, campus work experience and involvement, and building a network of people who are about to set off into career trajectories in the same or similar field as you. For example, most investment banks hire through referral by people who already work at the firm. Build bridges with the right people at University basically. Professors, Counselors, People you intern with, People at career events and job fairs, and highly motivated and involved students. I don’t mean to just bombard you with info but that’s just the type of advice I wish that I would have gotten before going to University. That, or to just go to Community College after graduating since since the U.S. public school system is so colossally screwed at this point that many school staff are just there for the check and meeting minimum requirements of their job description rather than going above and beyond to prepare students for success. But yes, High Schools have become factories to toss students into Universities regardless of if they are prepared for such a challenge, responsibility, and possible debt load; and Universities have unfortunately become nothing more than expensive job factories. But this is life guys. Complaining is for the weak and for losers. Even if you’re right to complain. The only way to win, regardless of how many hurdles is either to be content or keep trudging forward. Life is a competition. It’s a curse but that is unfortunately what it is. It’s only going to get more competitive from here as the world becomes more global and resources become more thinly spread out over the world.
Where is the cost to value list of US colleges and universities???
In 5 years, the tuition of my public in state university (WVU) have gone from 6.5k to 9k excluding fees.
$4000 for a 5 credit "Music History" elective class is overpriced and waste of time. Cut down a 4 year university into a focused 3 year university will be a good start.
top comment sir, honestly the US higher education system wastes so much time, effort, and most importantly money of students on 'electives'. drop the credit requirement from 120 to 90 and focus on key subject areas of the chosen major.
None of this explains why the costs on the University’s costs have increased. Sure, more capital is available for students to spend on education but WHY is education becoming more expensive in the first place? What is driving the costs? Let’s look there too.
@Alpha Omega No, stupid, you just didn't understand what happened. The state aid IS still available, in fact, it expanded. The government went from Pell Grants to also offering Non-Pell Grants (that need to be paid back) but schools recognized they could charge more money. What was not explained is what item in the school's balance sheets increased.
@@EvilChris2010 You need to watch the video again. It clearly said state funding for universities have decreased and they had to raised the tuition to cover that loss. What increased were federal student loans, not direct funding to the universities.
@quixxo Wow, what a dumb, xenophobic, and untrue comment. International students actually subsidize costs for students by paying 1.5-3x the tuition rate. Room & Board is standard for every EXCEPT out of state and international students. Those students AGAIN pay a hefty premium. Go back to reading your Q@sshole BS.
dude, it's pretty obvious in the video 😂😂😂😂
@@EvilChris2010 their new infrastructures caused higher liabilities
UW Madison costs 57k per year 😭 as a non resident, this hurts especially considering it’s a public school. They’re starting to cost more than private schools. In a nutshell, in state will be always be cheaper.
My son went to Cal. 7 Nobel Laureates, none of whom had to teach