A recent guest blog entry at Professors' Guide by Judy Genshaft, President of University of South Florida and chair of the American Council on Education, attempted to explain why college tuition and fees have risen at twice the rate of overall inflation. Her explanation raises a number of factors that undeniably contribute to the sharp rise in tuition and fees over the past ten to fifteen years.  Her list of factors includes: 

1. Decreases in the state subsidies that historically have covered much of the costs particularly for state colleges

2. Competition for top faculty talent driving up salaries

3. Higher expectations from students and parents for campus facilities and services driving up operating costs

4. The explosion of knowledge and technology requiring greater investments to keep college current and relevant

5. Increased costs of complying with increased government regulations and reporting requirements

6. Economic factors such as rising utility costs and fluctuations in earnings from endowments

7. Increases in the difference between full price and the average price students pay after scholarship and grant discounts

So the higher education system as a whole has faced sharp pressures that drive up costs. As a smart college shopper, however, you should pay particular attention to item number 7. Although all of the items listed represent costs that colleges must manage, as a prospective student that isn't your problem. Your goal should be to receive the best value of your college investment, and increasingly that means passing on colleges that want you to pay close to full sticker price in favor of a college that meets your educational and career goals, but that is willing to give you a steep discount for the privilege of counting you among its students. Depending on your life goals, Seattle University on a $15,000 scholarship may be a much better value than Yale at full price.