The Real Reason College Costs Are Going Up: Too Little Government

really offsets

it was a piece in the number

what are things we were talking about is the rise

in college education and we've had plenty libertarians call and say well

the problem is

student months because

a student loans a basically pump the a prime the pump

it allows more people to go to college you should be going to college allows

institutions to raise their prices

now I think there is something to that but that is not there is very little


between increase in student loans an increase in prices

but what there is correlation

to is the cost of a bachelor's degree at public universities

it is gone up 40 six-percent in real dollars from 2000 to 2010

now understand that public universities are the lowest cost option that people


if the lowest-cost option rises in price by 46 percent

it actually creates an upward pressure on prices

for private institutions the lowest-cost option

goes from two dollars to ten dollars

for a hot dog or whatever it is

then the high and %uh for steak is gonna go up

by an equal amount if not more why did this go up

over the same 2008-2010 period

education and related spending per full-time student

rose just 6.4 percent when you control for inflation in other words the costs

of educating these people

has not risen

operation and maintenance costs actually fell during that period as did academic


I think that's probably a function I love more TA's

better technologies so why

the the two has the tuition skyrocketed the recession put extra pressure on

state budgets but the share spending that goes to higher education

has been slipping for fifteen years

in 1998 13-point 1 percent of state general fund spending went to higher


by 2012 that number was down

to 10 percent that translates into a significant drop in funding per student

01 state governments appropriated 8500 preach full time student or the


by 2012 that it fall into 5900 production up almost a third

the show with their share of two we r

revenue that comes from tuition rose from 29 percent 2000 to 47 percent

last year public institutions in other words states are cutting back on their


for public colleges it is raising the price of tuition

have no problem with ending

many up this student loan programs

the day after we drop

public a university tuitions down to

I pic below 2001 levels

and I understand

you know I think we should still obviously have loans available

now understand that people are concerned that in some way this going to stratify

only rich people go

to Harvard year to year dollar to

but I imagine those and downs have the ability to diversify their

their student body