An Evaluation of Financing Alternatives for Private Higher Education

Author

Stella Ann Douros Costas, Fontbonne College

Year of Award

1992

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business Administration

Department

Business Administration

Keywords

college, tuition, loan, Pell Grant, scholarships, debt

Abstract

Education is widely regarded as a key to success, therefore the present tuition is of great personal interest to the many consumers of American higher education. Although the situation may seem hopeless, most people who want to continue their education after high school consider the financial picture challenging. Education is not immune to inflation, therefore college costs will continue to rise. Inflation in private tuition has exceeded the price increase of all major items purchased by consumers. Colleges and universities are unable to predict inflation they may well be advised to tie tuition to CPI changes. The rising costs of colleges have been passed onto students as higher tuition. Colleges cannot lower tuition to provide access. That would reduce the resources greatly. Education is labor intensive as operating expenses go up institutions cannot increase production to lower unit costs. Higher education is one of the few industries in our economy in which the price charged the consumer is substantially lower than the cost of producing the product. Since there is a perception that no one be denied an education due to an inability to pay. It is best for consumers to understand the pricing structure of higher education and its relationship to price, costs, and quality.

Tuition increases have exceeded general inflation have also out distanced family income. Private institutions are concerned that the widening tuition gap will restrict attendance of students unable to afford the cost. To avoid this from happening colleges attempt to increase student aid.

The benefits of education will enhance over a lifetime. Lasting rewards such as this should be thought of as an investment. Investments are usually paid out of savings and borrowing.

There are many investment opportunities available. This paper explores the pros and cons of financial alternatives for private higher education.

The most important alternative is to save.

Document Type

Restricted Thesis

Recommended Citation

Douros Costas, Stella Ann, "An Evaluation of Financing Alternatives for Private Higher Education" (1992). All Theses, Dissertations, and Capstone Projects. 351.
https://griffinshare.fontbonne.edu/all-etds/351