What are the Problems of Rising Cost in College Tuition?

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What are the Problems of Rising Cost in College Tuition? College fee is the main factor that depends on which institution of higher learning that a student is likely to join unless awarded a scholarship. It directly depends on one’s financial capability. The poor afford the cheap and less desirable intuitions that they can be able to afford while the rich can get access to high class type of education. Policies exist that govern the ability of institutions increasing their fees and at the same time federal government provides payment subsidy to students in order to make the education more affordable. Literature review Governments have shrunk their support for higher education. This decreasing support of higher education by the state governments is the leading factor that drives the rise in education fees at public colleges and universities. Another very important factor is the rising costs, faculty and administrators demand huge payment that are in turn offset by the students in so doing the college fees increases. Between 2000 and 2010 funds per student at government universities in America reduced by 21 percent. After the recession in 2008 higher education funding reduced by 14.6 percent before (Altinkilic & Hansen, 2000). Recent Bloomberg report shows that college fees have increased by more than 1100 percent over the last 30years, even though everything has gone up, tuition fees has gone at much higher percentage than other things. For instance healthcare costs have gone up by half the tuition fee over the same period of time. Mark Foster the Arkansas director of education said that education is more expensive in the recent years more than ever (Winkler, 2005). Problems of increasing college fees Increasing college fee... ... middle of paper ... ...f these factors laws and regulations should be put in place to govern the scale at which institution fees should be increased taking into consideration of the economic factors to achieve balance and survival between the institutions and students. Work cited Altinkilic, O., & Hansen, R. S. (2000). Are there economies of scale in underwriting fees? Evidence of rising external financing costs. Review of Financial Studies, 13, 191–218. Ancarani, F., Gerstner, E., Posselt, T., & Radic, D. (2009). Could higher fees lead to lower prices? Journal of Product & Brand Management. De George, E. T., Ferguson, C., & Spear, N. (2012). How much does IFRS cost? IFRS Adoption and Audit Fees. The Accounting Review. Steve, L. (2005). COMING TO TERMS WITH rising school fees. Management Today, 63. Winkler, M. (2005). The Bloomberg News Revolution. The Quill, 60–63,6.
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