2. Rising College Tuition and Fees by Andrea Eppley

3. Record Highs For Public College October 2012 College Board report: For the 2012-2013 academic year public college cost attendance rose to a record $22,261. Tuition and fees alone rose to an average $8,655, 4.8% higher than the prior year.

4. Financial Aid Budgets Not Rising Two-thirds of full-time students receive grants or federal tax breaks for college attendance. The College Board reports that 2012-2013 financial aid budgets stayed approximately the same as prior year. After scholarships and grants, in-state college students have to pay approximately $16,510 which is 4.6% higher than 2011-2012.

5. Why the rise in cost? According to the College Board, states have cut the funding for colleges by a total of $15.2 billion since 2007 (a 17.4% decrease). The number of student attending college has risen 12% since 2007. Average public colleges are receiving a tax subsidy of about $6,600 per student which is down from $9,300 just 6 years ago.

6. Subsidies Contribute to Rise It is typical for cost to rise in any industry that receives subsidies, to consume the subsidies. As size and availability of loans and grants increases, colleges may be increasing costs to take advantage of the capital.

7. It All Began In 1862 The year 1965 serves as a landmark for federal expansion into both K-12 and higher education. Postsecondary education subsidies, including student loan and grant programs, college library aid, teacher training programs, etc. began with The Higher Education Act of 1965. Federal aid for higher education was $10 billion in fiscal year 2000 and rose to $30 billion in fiscal year 2008.

8. Schools Say It’s Student Luxury Some rise may be due to the demands of the students who believe that Internet and cable, previously viewed as luxury only, are now necessities. Students don’t want large shared bathrooms, instead wanting single smaller bathroom shared only by roommates. There is also a demand for more common areas for group activities.

9. Bloat in Academia Goldwater Institute found that administrative bloat is a major reason for higher college cost. In the Cal State system, faculty grew only 3.5% from 1975 to 2008 but administrators rose by 221% in the same period. Bloated administrative growth can be seen across most academic systems and non- instructional positions typically outnumber the faculty.

10. More Students = More Remedial Federal aid has probably helped to increase student enrollment, which rose 48% between 1986 and 2006. With enrollment increases, the percentage of students needing remedial work has increased. There is some evidence that suggests that schools are lowering standards to accommodate the less ready students.

11. Underemployment Rises As colleges graduate more individuals, less opportunity exists for truly ready graduates. Thirty-seven percent of employed college graduates are fulfilling positions that require no more than a high- school diploma. Past and projected future growth in college enrollments and graduates is exceeding the growth in high-skilled job availability.

12. What can be done? Phase out federal aid. Require schools to be accountable via academic standards. Force a reduction of bloat in academia, including administrative and aesthetic. Base the cost of degrees on return rate, and the interest rate of loans on risk. Work to reduce wasted credit hours.

13. Sources Baum, Sandy, Jennifer Ma, and Kathleen Payea. "Education Pays 2010." Trends in Higher Education. College Board - Advocacy & Policy Center, 12 Dec. 2010. Web. 31 Mar. 2013. Brainard, Jeffrey, and JJ Hermes. "Archives." Colleges' Earmarks Grow, Amid Criticism. The Chronicle of Higher Education, 28 Mar. 2008. Web. 2 Apr. 2013.. Clark, Kim. "College Tuition, Other Costs Climb Again This Year." CNNMoney. Cable News Network, 24 Oct. 2012. Web. 31 Mar. 2013.. Edwards, Chris, and Neal McCluskey. "Higher Education Subsidies." Downsizing the Federal Government. CATO Institue, May 2009. Web. 2 Apr. 2013.. Henry, Andrew. "Rising Cost of College Makes It Unattainable for Many" Henry’s Head| USM Free Press. The Free Press, 4 Feb. 2013. Web. 2 Apr. 2013.

14. Sources cont. "Highlights." Trends in College Pricing. College Board - Advocacy & Policy Center, 16 July 2012. Web. 31 Mar. 2013.. "Highlights." Trends in Student Aid. College Board - Advocacy & Policy Center, 24 Oct. 2012. Web. 31 Mar. 2013.. Reynolds, Glenn H. "O's Flawed Fix for College-Cost Crisis." New York Post. The New York Post, 7 Feb. 2012. Web. 2 Apr. 2013.. Rosovsky, Harvey, and Matthew Hartley. "Evaluation and the Academy: Are We Doing the Right Thing?" Evaluation and the Academy. American Academy of Arts and Sciences, Jan. 2002. Web. 2 Apr. 2013..