College Tuition Costs Increase, Again

By Charles Tolleson

(In 2008, there were gasps as Cal State fees were raised to $3,048 a year. Now the $4,200 yearly tuition is expected to rise by 5% next semester and an additional 10% the following academic year, climbing close to $5,000 — more than three times what it was a decade ago.)

Why is college tuition increasing faster than inflation? It’s because demand has outpaced supply. Why has supply not kept up with demand? Because the State college system is a quasi monopoly like many other cartels, such as the American Medical Association and the American Bar Association.

The demand for college degrees has been fueled by student loans and free tuition for poor students. The cost increases are to the middle class parents who have to pay the tuition for the poor students. The loans allow students to spend years paying back the loan. Many students do not think they will have any problem finding a job and paying back the loan. The student loan program is creating a bubble in education much like the housing bubble of 2008.

Even middle class parents can take out low interest student loans for their children to attend college.

The best way to lower college costs is for the American Chamber of Commerce to announce they will no longer require a college degree for employment. Instead of a college degree American businesses will now require an education. This education may be obtained by online courses, on the job experiences, reading Wikipedia, or reading articles found by searching the Internet. An interview for a job at an American business may require a test to prove an applicant’s education. By this action the Chamber of Commerce will have more applicants to choose from which should lower the cost of labor.

Education used to be done at home or by tutors. Then it became a government monopoly. Sesame Street on TV showed how mass education can be more efficient. There are all kinds of free education courses online today. YouTube has YouTube-Education. It’s time the government stopped running education and allows education to be run by consumer choices in the free market.