By Mason Tracewell
It is clear that college tuition has increased drastically and many students are taking on a substantial amount of debt to go to college. The real question is: Why are tuition prices still rising? A recent study has tried to answer this question and the National Bureau of Economic Research’s (NBER) findings suggest that faculty salaries and state cutbacks don’t drive prices higher, but student aid availability drives prices higher. The argument is that the availability of more student aid allows for the schools to charge more tuition, because the students can pay for it. Also the study suggests with more state funding the schools can offer lower scholarships, so that the students pay the same amount, but the college pays out less money.
My problem with the study is that the study includes both private and public college data. I feel you would have to judge the two separately based on the vast differences between them in regards to funding, scholarships, and tuition cost. The researchers used data only from non-profit schools and this may have skewed the data and therefore the conclusions should not be stretched out to all colleges. I agree with the study that faculty salaries are not what drive tuition prices higher. Colleges are relying heavily on part-time faculty and these members get paid low wages with no benefits. Also the model college in the study combated increased faculty costs with increased student enrollment and this also suggests that faculty wages are not the reason for increased tuition.
know your college costs 