February
9, 2000
THE
RISING COST OF COLLEGE TUITION
WHAT DRIVES
THE COST and PRICE OF COLLEGE TUITION?
WASHINGTON
- Governmental Affairs Committee Chairman Fred Thompson (R-TN)
and Ranking Member Senator Joseph Lieberman (D-CT) warned today
that college tuition has risen too fast for many Americans.
The
warning came on the first day of a two-day investigative hearing
before the Governmental Affairs Committee on the Rising Cost
of College Tuition . The hearings focused on why tuition
costs are so high, to what extent federal financial aid
contributes to or mitigates rising tuition, and the impact of
debt burden on a student’s educational and career choices.
"Apparently,
colleges and universities themselves don’t have a good
understanding of why tuition rates are rising so rapidly,"
said Thompson. "Colleges have to do more to make themselves
more transparent in explaining their finances. At the same time,
the federal government needs to do a better job of looking at
tuition rates that are rising faster than the cost of living. As
this Committee has found with government agencies, you have to
know the nature of the problem before you can work to solve it.
"
"The
high cost of tuition has an intense personal impact on
individual families," Lieberman said. "But if college
becomes a luxury that an increasing percentage of the population
cannot afford, the economic divide between the haves and the
have-nots could undercut the American dream and stunt the
nation’s economic growth."
Senators
Thompson and Lieberman noted that the high price of a college
education is an issue of growing concern for American families.
Over the past twenty years, tuition has more than doubled at
both public and private schools, driven in large part by an
increase in schools’ costs. And tuition rates have risen so
fast that they have outpaced grants, loans, state appropriations
and other subsidies to schools, as well as aid to students and
their families. According to a report by the American Council on
Education, a stunning 71 percent of Americans believe that
"a four-year college education is not affordable."
Sixty-five percent of Americans list the cost of a college
education as a top concern, ranking it ahead of violent crimes
against children, children’s healthcare, and quality of public
schools.
The
Senators added that ensuring affordable higher education is
critical to maintaining national competitiveness in a global
economy. Highly trained, skilled workers earning good wages
power the economy, both because of the work they do and the
revenue they generate as buyers and sellers of goods and
services.
Witnesses
at the hearing explored the myriad issues that drive the cost
and price of college tuition, including what colleges can do to
contain costs. The hearing also examined the phenomenon of
"merit aid," or tuition discounting, which enables
students to bargain for a more desirable tuition price than the
one advertised.
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