College
U.S. News College Rankings Debut, But Why Do College Costs Continue to Rise?
Kiplinger News
August 17, 2010
U.S. News & World Report's college rankings were released August 17, putting higher education - and its associated costs - at the top of many Americans' minds.
Increased university spending is a major contributor to rising college costs. And administrative bloat may be one driver of the spending rise: A study performed by the conservative Goldwater Institute found that schools' inflation-adjusted spending on administration rose 61 percent between 1993 and 2007. Instructional spending, by contrast, rose just 39 percent.
The researchers suggest that the bloat stems from federal university subsidies; were subsidies to be cut, they say, the number of university administrators would dwindle.
Another factor in the rising cost of tertiary education may be the arms race, of sorts, that is taking place in higher education. Schools aim to compete with each other by building lavish dorms and offering richly equipped workout facilities - among other things - but students may end up footing the bill for those comforts.
Spiraling college costs may have multiple drivers. Undeniably, though, the rising cost of college is putting the squeeze on young people and their families: A recent TD Ameritrade survey found that 36 percent of teens would consider delaying college so they can save up first.
