It’s no secret that college—like just about everything else—is more expensive than it has been in the past, but why is this the case? There are a handful of factors that play their own roles, so keep reading to see what’s really going on.
Competition Between Colleges
College has become more expensive than ever before, but there are also more existing colleges than there have been in the past. Although this might be circumstantial, there appears to be a correlation between these two factors. Since there are more colleges available for new high school graduates to choose from, each one needs to do more to entice these grads to apply. In some cases, this means spending money on elaborate amenities. Although the amenities might help bring people in, the college still needs to pay for them.
Appeal of a Degree
One unfortunate reason that college education is constantly becoming more expensive is that it’s the colleges that have all the leverage. As expensive as college has become, those who have degrees still tend to earn more money than those who don’t. You can’t get a degree without going to college, so many people are willing to pay the higher prices with the hopes of gaining a long-term benefit.
Cost of Inflation
Everything gradually becomes more expensive over time—this is the nature of inflation. This is one contributor to the rising cost of college education. On the other hand, it should be noted that the cost of a college education is rising at a much greater rate than inflation.
With the cost of college education growing higher and higher, it’s wise to be extra careful with your finances. Financial Directions, LLC can help you with a broad array of financial services, including college savings and retirement planning in Tucson. Visit our website or call our offices at (520) 408-7777 to see what we can do.
