[rjf72]

We hit "peak university" in 2011. [1] In 2017 there were 1.25 million fewer enrolled students than in 2010. But this [2] is the zinger: in that same time frame, more than 300 new degree granting institutions opened up! It's becoming a hyper-competitive business. Good students not only are likely to stay on for the entire term of the institution, but also increase the prestige of your school which means more students, higher fees, and more profit.

I think a big issue is that the regulations on loans are removing any and all notion of supply and demand, so costs just keep getting crazier and crazier. Living on campus at an average private nonprofit university now will run you more than $50k a year. [3] Spending $2,357 for what may likely be $200k+ for 4 years is a phenomenal return on investment.

As usual, non-profit in practice and non-profit in connotation really don't mean the same thing. I attended a top 10 university only to see them constantly tear down perfectly functional buildings just to replace them with more aesthetically pleasing buildings that otherwise functioned just about identically. In some cases the new buildings had less room than the older ones. All it seemed to achieve was to 'Amazon' their profit figures. I don't really understand why they seem determined to waste so much money. The cynic in me imagines it's easier to justify a million dollar administrative salary when that's a much smaller fraction of your gross, and a "non-profit" institution would have difficulty justifying constant cost increases if they're showing a massive profit margin.

[1] - https://nces.ed.gov/programs/digest/d18/tables/dt18_105.30.a...

[2] - https://nces.ed.gov/fastfacts/display.asp?id=84

[3] - https://nces.ed.gov/programs/coe/indicator_cua.asp

[lotsofpulp]

>I think a big issue is that the regulations on loans are removing any and all notion of supply and demand,

There shouldn't be student loans from taxpayers in the first place. If voters want to give assistance to students, then pay all or a portion of their tuition. If the financial markets deem education to have a worthy return on investment, they will underwrite loans just like any other loan.