Is the cost of college getting less expensive? The answer is yes and no. At our nation’s most elite institutions, the cost of a college education continues to rise at a rate generally higher than the rate of inflation. But at our nation’s not so selective schools, which are the vast majority of American universities, the cost of college is going down — as it should. We don’t see the value in attending many universities in the United States. You know the schools. Maybe you pass them on the freeway and you think, “Is that really a college? It looks more like a building. Maybe it doubles as a bank?” You see, colleges are businesses and businesses operate by the principle of supply and demand. More and more applicants continue to apply to our nation’s most elite institutions. At our nation’s not so selective schools, that isn’t necessarily the case.
Tuition Continues to Rise at America’s Elite Universities
As Ivy Coach is quoted in a piece for “Poets & Quants” by Greg Yang entitled “Is The Cost Of College Getting Cheaper?“, “Actual costs at private four-year institutions have decreased nearly 5% over the past decade, according The College Board. However, according to Brian Taylor, managing director of Ivy Coach, an elite college consulting firm, not all private four-year institutions are the same. ‘There are many private, nonprofit, four-year colleges in the United States,’ he says. ‘Most are not highly selective. In fact, most aren’t particularly good at all.’ At the end of the day, colleges are businesses. If they have to lower tuition costs to attract students and more business, Taylor says, they will. The only exception? Elite, prestigious universities. ‘At our nation’s most elite universities, tuition continues to rise — typically at a rate higher than inflation,’ Taylor says. ‘And these schools have every right to keep inflating tuition. The demand to attend America’s most elite universities continues to rise so why wouldn’t these schools raise tuition? It is Business 101.'”
As our regular readers know all too well, we have a crystal ball at Ivy Coach. Our crystal ball hereby predicts that tuition at our nation’s elite universities will continue to rise at a rate higher than inflation for the next several years. And the cost of tuition at our nation’s not particularly selective schools will remain stagnant or drop over the next several years as well. At least that’s the reading of our crystal ball — which is famously accurate and even cited by “The Dartmouth.” So we expect today’s reading will be an accurate prophecy.