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Why is college tuition in the USA so expensive?

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Universities in the US have gotten more expensive due to several factors: Reduced state funding for public institutions. It used to be that an student could go to a same-state public university, like UMass Amherst, UC Berkeley or City University of New York, and pay little to nothing in tuition, fees and so on. read more

The US government subsidies college tuition because it's expensive, but that causes a malicious cycle. Subsidies raise demand for college, which in turn results in increased tuition, which results in increased subsidies to counteract the higher cost, which raises demand for college, and so on. read more

Unlike colleges and universities in America, however, the severe, continual increase in expenses haven't been bankrolled by increases in tuitions, as they have all across the United States. Instead, University of Helsinki is a tuition-free school, and relies heavily on core funding from its government to operate. read more

In other words, far from being caused by funding cuts, the astonishing rise in college tuition correlates closely with a huge increase in public subsidies for higher education. If over the past three decades car prices had gone up as fast as tuition, the average new car would cost more than $80,000. read more

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