Why is College inflation Double the Consumer Price Index?

Colleges are Making Cuts in Anticipation of low 2020 Enrollments.

Boise State University just announced that it is discontinuing its baseball, swimming and diving programs in anticipation of low student enrollment rates this fall.

That announcement struck close to home for me, and not just because I live near the BSU campus.  I was also on the swimming and water polo teams at the University of California, Riverside.

The announcement stated that the program cuts would save the school $3,000,000.00 per year.

It got me thinking about the cost of college in general.

I did some research and found that the inflation rate from 1977 to 2020 was 6.52% per year, almost double the regular CPI rate of 3.42%

A college education costing $20,000.00 in 1977 would equal $302,079.03 in 2020.

See https://www.in2013dollars.com/College-tuition-and-fees/price-inflation

Why Have College Costs Gone Up So Much?

Just coincidentally, I was graduated from UCR in 1977.

I earned a B.A. in Political Science, which prepared me well for law school at the University of Santa Clara.

UCR had a very lean administrative staff.  We had a Chancellor, two vice chancellors, and a handful of academic deans.

Suggestions:

Before BSU or any other college eliminates more athletic or academic programs, I ask them to ponder why they couldn’t provide an excellent college experience using a lean administrative model.

Maybe Elon Musk could share some of his cost-cutting lessons learned from his public-private partnership between SpaceX and NASA.

Thank you!

Michael Oswald

michael@msochartered.com

www.msochartered.com

Please note: the above post contains educational information. It is not intended as legal advice. Engage an attorney who is licensed in your state to get advice on dealing with any specific legal issue.

© 2020 Michael S. Oswald

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s