Professor Mark J. Perry's Blog for Economics and Finance
Brown Tuition, room and board, and all fees: $51,476
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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Typical Yearly Costs for Undergraduate Students 2009-10 for the University of Missouri: Missouri Residents - $13,128
Non-Missouri Residents - $18,408
Online education is beginning to have an impact on the bricks and mortar bottom line.
Change starts slowly, but accelerates exponentially.
The middle class is swiftly being priced out of higher education. Perhaps all state laws that guarantee a "free public education" should be amended to include college, as well as K-12? Since most everyone agrees that state-of-the-art, second-to-none, education of the nation's youth is the key to our future, what would be a better national investment? (For those with little faith: If they screw up and fail to graduate, they'd have to repay it.)
I'm hopeful about MIT's OpenCourseWare as a means to change this.
Part of the reason higher education is so expensive is due to financial aid and other subsidies. When the government gives you money for school they are really giving money to the institution and wrapping themselves in the cloak of feel-good for helping you.
The positive side is that the money is not for a particular institution and that drives prices higher at the better institutions. That is part of the reason higher education has not suffered to the extent that primary schools have.
"The middle class is swiftly being priced out of higher education"...
What absolute nonsense!
The answer is obvious, don't send the kid to a high priced school...
"Perhaps all state laws that guarantee a "free public education" should be amended to include college, as well as K-12?"...
Well of course mika you're going to reach deep into your pocket and pull out the money to finance that silly idea, right?
"Since most everyone agrees that state-of-the-art, second-to-none, education of the nation's youth is the key to our future..."...
Again, according to whom? The NEA?
Do some homework: Equally Prepared For Life - How 15 year old boys and girls perform in school
The OECD Programme for International Student Assessment (PISA) answers these questions and more, through its surveys of 15-year-olds in the principal industrialised countries. Every three years, it assesses how far students near the end of compulsory education have acquired some of the knowledge and skills essential for full participation in society...
I agree only somewhat with Fishsticks. The tuition, room, and board levels shown are the "list price" for the institutions, only paid by those with the highest "willingness-to-pay". Most pay a "discount" price.
This form of price discrimination, facilitated by all of us revealing our financial condition to the colleges through financial aid forms, also allows the schools to maximize their government subsidies. However, the primary objective is to get the "rich" to pay full price while charging a lower price to those with less financial means.
The middle class is swiftly being priced out of higher education.
Hah. Read this:
http://prnwire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-16-2006/0004452015&EDATE=
Why Can't Johnny Afford College? Because His Parents Spend Unwisely, Depend on Debt, and Have Unrealistic Expectations for Financial Aid
The survey of 1,358 parents. . .[with] at least one child under the age of 18 who they identified as likely to attend college and household incomes of $50,000 or more. . .Nearly all parents surveyed (95%) intend to help their kids pay for college, and 41% plan to cover all of their children's college expenses. . .Of those who intend to fund at least some of their children's higher
education, most have spent more money on entertainment and/or discretionary purchases in the past year than they have saved for their children's college costs. Specifically:
* 58% have spent more on eating out or ordering take-out;
* 49% have spent more on vacations;
* 38% have spent more on consumer electronics.
Thirty-one percent of parents who plan to contribute to their
children's education have put more money toward their children's allowance in the past year than they have put in their college savings fund.
Almost three-quarters of parents (74%) admit they could be saving significantly more for their children's education if they limited money spent on traveling, entertainment, electronics and impulse purchases.
Two-thirds acknowledge that by reducing their discretionary spending on items such as toys, clothes and entertainment for their children, they would be able to save much more for their college educations.
Perhaps all state laws that guarantee a "free public education" should be amended to include college, as well as K-12?
Again, hah. Harvard offers free tuition for students of families with less than $60k in income. But not everyone can go to Harvard. I'd also guess that the expected ROI on paying full tuition at Harvard is above ROIs from similar investment opportunities available (e.g., investing in a small business for your 18-year old to run).
The real question that remains unanswered is what is the value difference between a degree from a state school and a top private school? If going to grad school, as long as the school is accredited etc, then likley not so much. If one wants to play in the highly pyramadial professions such as wall street, then perhaps a lot.
Of course how much is choice driven by the parents saying my child is in X college.
Perhaps the moderator could contrast the value of a degree from UM Flint vs UM Ann Arbor?
Elite colleges (and all top 50 universities) are in the middle of the perfect storm of price inflation. They're facing an ever-expanding applicant pool; permanently sticky reputations; no new competition; a major percent of their students are essentially cost-is-no-object while cheap government loan subsidies cover the rest; an enormous supply of qualified professors; tacit price collusion, and host of other issues.
What is it that they say about unsustainable trends not being able to continue forever? Well, schools increasing tuition at ~7% annually is one of those situations. But it'll go on until the system breaks and the government regulates it, which is going to happen one day a couple decades from now...I promise you it'll happen.
Anonymous said at 9/08/2009 12:09 AM...
One could just split it into two choices:
Remove the name from the school(and other identifiers) from any consideration, and things go on as they are now.
Continue to permit the name distinction, but make funding a non-issue for US citizens.
I remember back when someone in the lower middle/ middle class could send their kids to school easily. Everyone in the US whose parents were in the 25/75 percentile sent their kids to Penn and Brown.
That just can't happen anymore...not in GW Bush's economy.
...sarcasm off...
You "Middle class priced out today" people remember a history THAT NEVER HAPPENED!
Well as far as Public Liberal Arts Colleges go, it really is hard to beat (#3 US News and World Reports) Virginia Military Institute. Great engineering program.
The problem for a lot of people is that VMI requires self-discipline.
"In the end, our scorecard may be music to the ears of many state-school admissions deans—not to mention a lot of struggling parents. After all, who would've guessed that Texas A & M, No. 1 in our survey, would deliver a payback more than two and a half times that of Harvard? Or that the state universities of Delaware and Rhode Island would beat out every Ivy in the ranking?"
http://www.smartmoney.com/Personal-Finance/College-Planning/The-Best-Colleges-For-Making-Money/
Yes, you have to spend some to make some, but you don't need to overspend. Good luck Ivy Leaguers from a URI graduate.
We need vouchers for higher education. No debt. No mess. $10,000 per student grad and undergrad. $50,00 for med school. Make schools compete for the money. Prices will comme down. As long as schools know there is an unlimited supply of loans, there is no incentive to lower tuition.
We should stop inflating tuition prices with taxpayer money - prices just go up in response to more funding. This is another bubble that needs to pop.
Yeah, let's remove all school names. That will fix it. Great idea Seth!
Harvard shall henceforth be known as Education and Indoctrination Campus 1149.
According to an article by The Economist, American institutes of higher education increased by only 4.3% in 2009, the lowest annual rise for nearly 40 years. Even business schools, used to raising their fees with near impunity, have not been exempt from the market conditions. The average annual tuition fee for a full-time MBA programme at the top 10 American schools in the Economist Intelligence Unit's ranking is $46,839, up 4.9% on 2008. This compares with a 5.8% rise a year earlier. If business schools are responding to the financial pressures faced by prospective students in these straitened times, the response of many may be a resounding “it’s about time.” However even though we are seeing a lower rate in tuition costs compared to previous years, there is still a near 5% increase in tuition costs which is well above inflation rates. Price rises may have been more modest this year, but there is little chance of below-inflation increases any time soon
I've seen several comments that I agree with here. First, that these are retail tuition prices. The actual cost is entirely dependent on ability to pay. If you (or parents) have a low income and no assets then you aren't expected to pay those prices and aid is arranged to help. If you are unfortunate enough to be middle class you are pretty much expected to pay the retail price and have your parents re-mortgage their home to do it. Also, you'll take out loans that you won't be able to repay because you can't get a job that pays enough to make it worthwhile.
If you are upper class you'll pay full price, but that's nothing compared to what the new library wing named after your grandpa (funded by money your family donated) cost to build.
Education is only partly an economics decision. There's a lot of ego involved. That's the main reason these schools can get away with such large increases. That, and of course, easy credit for student loans.
Straightliner just $99 per month....just $99 per month
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