College Affordability: The Wolf in Sheep’s Clothing

Anthony P. Carnevale explores some of the ways that he suggest are better ways to examine the issue of college costs:

A major flaw in the popular narrative on rising tuitions is the failure to distinguish public from private colleges. Tuition increases affect private and public colleges differently. Public enrollments are less affected by tuition increases because of their lower threshold prices. As tuitions rise, college enrollments shift from private colleges to the lower priced publics creating an increasing public funding burden, especially in recessions when families are looking for bargains. Private tuitions distort the data on rising tuitions as illustrated by this statistic: College tuition rates have risen more than 300 percent since 1987, when overall prices have only risen by a little more than 80 percent. Look closer and you will see that the big tuition increases come at the high-priced private institutions, not the public colleges. Tuition increases in public colleges have been relatively constrained and competitive. According to the College Board Trends in College Pricing survey in 2007, tuitions at four-year public colleges have risen by a little more than 50 percent in the last ten years and by about 20 percent in public two-year colleges – a far cry form 300%.

A deeper confusion stems from the fact that the dominant narrative on affordability fails to distinguish between college tuition and college cost. Tuition is the price that students and families pay for college. Cost is what colleges pay to educate students.