Within just a few years time, the annual cost to attend some of our nation’s most elite universities will reach six figures. And make no mistake — it is our nation’s most elite universities that set tuition benchmarks across the land. The reason? It all traces to the fundamental economic principle of the law of supply and demand. As more and more students apply for admission to these institutions while these schools generally hold steady the number of available seats, it’s logical these schools would think to themselves, “We can raise tuition even more.” In America’s free market economy, these elite schools absolutely do have that right.
Increasing Demand to Attend UChicago Leads to Tuition Hikes
In a piece for The Atlantic entitled “College Is on Its Way to Costing Six Figures a Year,” Alia Wong focuses on the reinvention of the University of Chicago. In 2006, over a third of applicants to the school earned admission. This figure compares to a 5.9% admit rate this past year. And as the University of Chicago’s admit rate has plummeted, you bet the school has significantly raised the cost of tuition. The University of Chicago, after all, home to perhaps the most celebrated department of economics in all the world, is by no means immune to the law of supply and demand.
Many Elite Universities Will Soon Cross Six-Figure Tuition Threshold
As Wong writes of the University of Chicago, “As admission rates have dropped, the cost of attendance has increased—a correlation seen at many highly selective schools. By 2025, the University of Chicago’s sticker price is predicted to pass the $100,000 mark, which would make it the first U.S. college where attendance costs six figures, according to a new analysis by The Hechinger Report, an education-news outlet. The analysis suggests at least a handful of other U.S. colleges will follow suit soon after Chicago hits that milestone, including California’s Harvey Mudd College, New York City’s Columbia University, and Texas’s Southern Methodist University.”
What do our readers think of the rising tuition costs at our nation’s elite universities? Which schools do you think will be among the first to cross the six-figure threshold? Have a question about sticker prices vs. net prices? Let us know your thoughts by posting a Comment below. We look forward to hearing from you!
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