Why college is getting more expensive | CNN Business

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College is really expensive. And it just keeps getting more expensive.

The average tuition at US private colleges grew by about 4% last year to just under $40,000 per year, according to data collected by US News & World Report. For a public in-state school, that cost was $10,500, that’s an annual increase of 0.8% for in-state students and about 1% for out-of-state. But at highly rated or selective schools, the price tag increases substantially. Harvard University charges $57,246 in tuition and fees, per year, for undergraduate students.

In 2021, the top 10% of Americans held nearly 70% of US wealth, up from about 61% at the end of 1989, according to the Council on Foreign Relations. The top 1% of earners in the United States now takes home 21% of all the income in the United States, according to the Economic Policy Institute. That means a top-ranked university can charge whatever it wants and will still find wealthy families willing and able to pay each year.

 

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