Why is tuition rising and what can we do about it?

                                                                                                          (Source) Tuition is rising at an extraordinary rate. Over the past 20 years, the average tuition and fees have increased by 144% at private universities, and by over 170% at public universities. Over the same period, inflation has only increased by 54%. This phenomenon is not happening due to a single factor. While many theories try to explain how this phenomenon arose, I will explore some of the predominant ones, and then discuss some ways we can try to solve the issue of rising tuitions. The first theory stems from the Bennett Hypothesis. The idea is that the more money students can borrow, the more colleges are able to charge. Currently, the government can give students federal loans up to the cost of attendance.  Since students can borrow up to whatever the cost of attendance is, there is much less demand elasticity due to the price. Thus, [read more]