The cost of Education
Rising college tuition rates have become a controversial issue. A major cause of this is the inelastic demand for higher education, and the ability of colleges to act as price discriminators based off of families ability to pay. This analysis seeks to show whether costs of attendance have actually risen as much as it appears, or if increasing tuition also corresponds to increasing finical aid. (Effectively only causing prices to increase for the wealthy students.)
Conclusion
The price for college for wealthy students has risen faster than it has for students receiving financial aid. The way this aid is distributed us unknown: it’s unclear if all students with need are benefiting from increased tuition. The average cost of Attendance, even after total aid and scholarship has risen. This rise is drastically less than when financial aid and other grants are not considered though. It is a reasonable interpretation that the recent frenzy about increasing tuition prices is misguided. Tuition is is going up, but perhaps the more significant change is the price discrimination and the cost to the wealthy.
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