Oops. I used the wrong “rein” in the title. I corrected the spelling but the URL will still contain the wrong spelling. Thanks, MBH!
There was an article in today’s Wall Street Journal about how colleges are trying to make themselves more affordable ($). Some colleges are doing stuff like:
- freezing tuition for certain students
- offering more grants instead of loans
- adjusting financial aid formulas to reduce the amount families are expected to contribute, which will aid more affluent households
This is all fine and good but why can’t colleges just rein in their expenses? We all know college expenses are rising a lot faster than the consumer price index. According to the WSJ article above, college tuition and fees are expected to rise another 5.5% to 5.8% this year.
Why is that?
Is it a self-fulfilling prophecy that gives colleges the automatic right to raise tuition and fees simply because it’s expected? Are any of you familiar with the economics of running a college or university? If so, please share your insight with us.