Words of Wisdom from the Parent's College Handbook

Jim H
By Jim H on Wed, Jul 9, 2014 - 9:08am

My daughter heads to college in late August to a big University.  We just received a nice, "parents handbook" to help us get oriented to all of the organizations and services available on campus.  What caught my eye was this answer in the Q&A regarding tuition and payment plans;

Q.  Should I plan for tuition and fee increases over the course of my student's enrollment?

A.  The hard truth is that the price of an education at a nationally recognized institution like XXXXXX University increases each year.  The Chancellor, the faculty, and the administration make every effort to keep costs as low as possible.  It is important for students and families to plan for annual cost increases and to be prepared for the financial commitment. 

WOW!  What truthiness.  No dissembling here... no maybes.  The cost will rise.  Each year.

Of course, the manual tells me nothing I didn't already know.. I was just surprised by how direct they were in dealing with the subject of inflation.  My favorite way to illustrate the institutionalization of inflation by our monetary central planners is this chart from Doug Short - since about 1955 we have had no periods of net price deflation, other than a short stint at the beginning of the 2008 crisis... Steve Keen's model be damned;

      http://www.advisorperspectives.com/dshort/charts/inflation/inflation-sin...

 

 

2 Comments

jennifersam07's picture
jennifersam07
Status: Silver Member (Offline)
Joined: Oct 14 2012
Posts: 112
no tuition guarantee?

Wow. The schools my son were considering offered tuition guarantees. The one that didn't we rejected after getting a tour that included a state of the art gym and mascot shaped swimming pool construction project. We decided that those things weren't going to help get him a job post graduation. Parents and students have to just say no, right? I'm hoping there will continue to be consumer push back and the schools that keep charging too much will be penalized until they bring costs down. So crazy it just might work.

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2379
Good point Jennifer..

I was not even aware of the trend you mention... I think it is still a small minority of schools offering the price  fix;

http://www.usnews.com/education/best-colleges/paying-for-college/article...

While on the subject, ZH picked up an article today that purports to identify some of the driving forces behind tuition inflation... administrative bulge being a biggy.  I believe that the facilities arms race you mention is another.  

http://www.zerohedge.com/news/2014-07-09/why-tuition-keeps-rising-spoile...  

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