There are mountains of data about why college costs more. Compared to the 1970’s it is about 200% more in real terms. Here are some of the reasons:
- No cap on demand - federal loans increased the ability to pay so colleges have no incentive to control costs
- Lower state subsidies - States built prisons and paid for social services instead of spending on education
- Financial aid - High prices paid by some subsidize low prices for others and increase the sticker price.
- Excessive regulation and administration - Federal regulation has increased compliance costs and led to a higher percentage of non-instructional staff.
- Higher labor costs. Labor is 70-80% of a college's budget. Higher salaries and medical inflation both contribute.
- Student demand for luxury items. - Improvement in accommodations, food, support services, etc all cost more.
- Higher marketing costs - In a quest to improve their rankings and perceived value, colleges spend a lot more to get you to apply. 8 Little application of labor saving technology. - This is just starting to become common. Tuition inflation varies a lot, and tends to be less in the conservative Midwest and more on the coasts.
Military service and the GI bill were much more commonly used back in the day when loans were not common.