Reply to Will top privates ever put a cap on tuition?

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[quote=Anonymous]Tuition isn't going up just because parents will pay it.  One regular item of increase that should be expected from any school is an annual inflation increase -- a school's expenses are going up too and tuition is raised at a minimum to keep pace.  Yes, annual tuition increases at some schools outpace tuition, but not all -- some schools have tuition increases that are in the range of published increases in the cost of living (CPI).  Salaries are a huge part of a school's costs, and of course those go up by a bit each year.  Tuition increases to track % increases in the cost of living are reasonable and should be expected.

Some schools though have things that push revenue needs higher than CPI increases, such as expensive building projects or simply more buildings/facilities (which necessitate increased operating and capital expenses).  The schools are all 501(c)(3) non-profit organizations, so they don't pay any property tax; however, they still have expenses of regular for-profit businesses, like salaries, insurance, building upkeep, and utility expenses (none of which are deductible, as a nonprofit org).  If the school has a large and/or expensive-to-maintain campus, but a relatively small number of tuition-paying students, they're going to have to increase tuition relative to their peers in order to maintain the campus and facilities.[/quote]

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