American universities have an incentive to seem extortionate
The cost of many private colleges in America has reached $80,000 a year. The median household income in America in 2021 was $71,000 a year. This shows that college is unaffordable. Or does it?
The consensus view is that America has a college-affordability crisis and things are getting worse. According to the Heritage Foundation, a conservative think-tank, “college costs are out of control”. Bernie Sanders, a senator from Vermont, and other progressives have pushed for free college and loan-forgiveness for years. The White House attempted a costly bail-out of student borrowers which the Supreme Court recently declared unconstitutional. Both sides are telling a similar, but mostly inaccurate, tale. Most undergraduate degrees in America are actually affordable, and in many cases going to college is getting cheaper.
There are three main types of colleges in America: public, non-profit private and for-profit private. Public colleges are much less expensive than private ones. According to US News & World Report, which ranks colleges, the average tuition fee for students at a public college studying in their home states is about $10,000, compared with nearly $40,000 for private colleges. And most American students benefit from these lower prices. In 2021, 77% of college students (about 12m) were enrolled in public colleges. Some states are cheaper than others. Tuition in Wyoming costs $6,000 per year for residents, whereas Vermont charges $19,000.
2023-07-23 10:54:53
Link from www.economist.com