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Why have college costs risen 12 fold in 30 years? In a terrific story today, John Hechinger points to “administrative bloat” at public universities like Purdue, which has made a habit of doling out six-figure salaries to armies of administrators:
Purdue has a $313,000-a-year acting provost and six vice and associate vice provosts, including a $198,000 chief diversity officer. It employs 16 deans and 11 vice presidents, among them a $253,000 marketing officer and a $433,000 business school chief.
The rise in tuition could be exacting a toll on enrollments: Richard Vedder thinks that with tuition increasing at twice the rate of consumer prices, “colleges may in some cases be pricing themselves out of the market”. The gap between disposable income and college costs, Sober Look writes, “has widened to historical highs”. For a data deep-dive, the College Board has a comprehensive study of the trends in tuition and student aid.
Megan McArdle argues that surging costs are as much a consequence as they are a cause of unprecedented levels of student debt, spurred on by government subsidies. But Mike Konczal flags a Department of Education study that shows that the government earns $1.14 back for every dollar it loans to students and asks, “What’s a good word for the opposite of a subsidy? Whatever it is, student loans are that”.