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What Factors Contribute to Cost Increase in Higher Education - Research Paper Example

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What Factors Contribute to Cost Increase in Higher Education

According to the US statistics shown by Institutional Characteristics Survey tuition fee charges remained relatively stagnant in the 1970s. But there was a considerable increase in fee charges between 1980 and 1990. This increase not only had a great effect on the student and parents but also on education policymakers. In the same survey, it was noted that rate of increase was greater at public institutions as compared to private institutions. Despite increase in tuition charges, number of students continuing on to higher education after finishing their high school has raised from 49% in 1980 to nearly 62% in 1993. During 1992-93 full-time students attending a public school received financial aid on an average of 29%. The aid was greater for families with poor income about 80% and less for high-income families about 10%. (Livingston 1995).Some enthusiast believes that higher education should be free. Many would agree that this statement is misconstructed. Even though sometimes consumer may not have to pay for a product but someone else in the background is bearing the cost. Going through a lot of literature I realized that it has been debated extensively but the question is still the same: who should pay?. Before we can answer this question we need to understand different policies which provide the revenue that fuel the education system. The most common and classical model is General Tax system. In this policy, the funds are collected via general taxes imposed on every individual of the country. ...Show more

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This paper "What Factors Contribute to Cost Increase in Higher Education" analyses that concept that higher education plays an important role in the economic development and institutions can stimulate productivity was first introduced by Theodore W. Schultz…
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