This is a great article explaining the main reason for the rise in the cost of college tuition.  Using practical problem solving techniques and economic theory, the main reason is the expanded access to money by the federal government to pay for school.  For every dollar available to a student in subsidized federal aid, the increase in tuition was estimated at 65 cents on average.  The main increase in tuition was in the 2000’s.  By giving students more access to pay for school allowed the colleges to raise tuition and students to pay more for the same goods or services.  One data point of evidence is that for-profit schools experience abnormal returns of 10%+ around the time Congress passed the increase in loans, signaling a raise of tuition.  Also, some schools use the tuition price comparison to prove they are as prestigious as the comparative school.

The results are not conclusive as to the exact dollar amount associated with the federal aid for tuition.  The general census is that the benefit still outweighs the cost.  The overall view is changing due to the debt level associated with students today than in the past.

Article Link:  http://www.marketwatch.com/story/a-surprising-reason-for-rising-college-tuition-2015-07-07/

Gary Kapanowski – Lean Six Sigma Master Black Belt – Excelsior

The following blog is the opinion of Gary Kapanowski and Garykapanowski.com.  It is the sole intent to broadcast this opinion from Gary Kapanowski and Garykapanowski.com exclusively and not to reflect on any other institutions or organizations associated with Gary Kapanowski or Garykapanowski.com.

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