Why has college gotten so expensive in the last 30 years? A blank check in 1993

Re:Why has college gotten so expensive in the last 30 years?... by user5994461 on Tuesday September 01, 2020 @03:44PM (#24346134)

For reference, cost in France is about 11kE per year for undergraduate and 22kE per year for master in computer science engineering. That's what it costs the university per student, not what the student pays (up to 1k a year). This doesn't cover accommodation or canteen since that's not part of the university.

I don't know what's the cost in the US but I don't imagine it's orders more. The worst number I heard from coworkers was 60k$ a year in NYC (that's easily triple income and taxes compared to France so not a straight comparison).

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Re:Why has college gotten so expensive in the last 30 years?... by pb7 on Tuesday September 01, 2020 @04:18PM (#24346524)

That's roughly how much public in-state universities cost in the United States on average[0]. Some states are significantly cheaper.

[0] https://www.valuepenguin.com/student-loans/average-cost-of-c...

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Re:Why has college gotten so expensive in the last 30 years?... by sudosysgen on Tuesday September 01, 2020 @08:12PM (#24348626)

Wait. You're comparing total cost in France, to cost at the point of use excluding taxes in the US. Education in public in-state universities is also highly subsidized.

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Re:Why has college gotten so expensive in the last 30 years?... by gammarator on Tuesday September 01, 2020 @10:42PM (#24349510)

Those state subsidies have steadily been eroded over the time period under discussion--part of why tuition has increased. At most large state flagships, public funding is now a significant minority of revenue.

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Re:Why has college gotten so expensive in the last 30 years?... by sudosysgen on Wednesday September 02, 2020 @02:29PM (#24356218)

Right. But you still can't compare US price without subsidies to French price with subsidies. They are still a significant minority, about 30-40% of what Tuition brings in.

Besides, public funding given a year ago still factors into costs today.

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Re:Why has college gotten so expensive in the last 30 years?... by ericmay on Tuesday September 01, 2020 @10:36PM (#24349479)

Is it highly subsidized? Any reason to think that is the case?

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Re:Why has college gotten so expensive in the last 30 years?... by sudosysgen on Wednesday September 02, 2020 @01:10AM (#24350154)

It is indeed highly subsidized, to the tune of billions a year. You can read the Financials online.

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Re:Why has college gotten so expensive in the last 30 years?... by ericmay on Wednesday September 02, 2020 @05:59AM (#24351645)

Do you mean subsidized in the sense of student loans backed by the government?

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Re:Why has college gotten so expensive in the last 30 years?... by sudosysgen on Wednesday September 02, 2020 @09:26AM (#24352961)

No. The link I was replying to was referring to State Universities. They are owned and partially financed by the government.

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Re:Why has college gotten so expensive in the last 30 years?... by ericmay on Wednesday September 02, 2020 @09:29AM (#24352991)

Sure. But what I'm wondering is what subsidies you're referring to. Are you talking about grants and loans that students get, or maybe federal grant money for research?

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Re:Why has college gotten so expensive in the last 30 years?... by sudosysgen on Wednesday September 02, 2020 @10:53AM (#24353849)

These organizations literally directly receive money from the government. Students grants are a factor too, but they are owned and financed in large part by the State. That's called a subsidy. They are losing money, that the taxpayer shoulders.

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Re:Why has college gotten so expensive in the last 30 years?... by ericmay on Wednesday September 02, 2020 @12:26PM (#24354786)

Ok. So I looked at the FY19 budget for one of the universities I attended and for the overall budget of $7.3 billion it's broken out like this (numbers are rounded). [1]

Tuition and fees -> $1.8 bb

Government appropriations (it looks like this is what you're referring to as direct subsidies?) -> $ 470 mm

Grants and contracts -> $862 mm

Sales & Services University -> $543 mm

Sales & Services Health System -> $3.3 bb

Sales & Services OSU Physicians -> $480 mm

Gifts and Endowment -> $380 mm

Negligible other items -> $100 mm or something.

So what subsidies are you referring to? Happy to look at a different university if you want to provide an example.

[1]https://busfin.osu.edu/sites/default/files/12_a_fy21_budget_...

-edit-

Unfortunately I can't reply, but I'm not sure why you're only considering government appropriations with respect to tuition instead of the entire budget. Seems a bit selective to me.

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Re:Why has college gotten so expensive in the last 30 years?... by sudosysgen on Wednesday September 02, 2020 @12:45PM (#24355046)

Yup, government appropriations is about 38% of tuition. Part of tuition is also paid for by the government via various programs.

So if you want to look at total cost starting from the average amount a student pays as tuition you have to increase it by 38%. There are of course other intangibles paid for by the government such as the initial investment, often the land and a part of the endowment too.

So it is consequence fair to say that that tuition in state university is subsidized by the government.

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