WHY EDUCATION COST INCREASES SO MUCH ??

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expensive education

high education cost

education cost inflation

college cost out of control

Expensive education cost is not merely a problem in Malaysia, all nations around the world basically facing the same situation. In the past three decades, college tuition has consistently increased much faster than both inflation and incomes.

Why do college costs “inflate” so much faster than other expenses?

Facilities and equipment

Higher education institutions need to follow the trend, upgrading their equipment and teaching material regularly. We can see that large portions of a school’s budget are more sensitive to inflation that the typical household. For example, colleges need to replace technology more often than the typical family. Also, teachers have been historically underpaid, and are finally getting some of the raises they deserve.

Scholarships

If your student is not one of the lucky few that receives a scholarship, then they become one of the unlucky few who helps pay for what others receive. This is especially true with private colleges and universities that receive little or no funding from the government.

This becomes a perpetual problem that seems to feed on itself. As college costs rise, more students need scholarships. As larger scholarships are given, it continues to raise the price of higher education for the remaining students. This leaves more students needing scholarships to meet the skyrocketing costs, and so on.

Demand

The main reason of skyrocketing higher education cost is due to the demand. Credential society makes certification too much important. For wealthy families, parents willing to pay expensive fees in order to send their children to branded universities. Even though extremely expensive, they still were willing to invest since they know it bring better prospect to their children. Therefore, for branded colleges administrators have no reason to lower the fees because many people willing to pay high, many of them even increase the fees since people still pay for it.

How about moderate and low quality colleges? Will they lower the price to compete for customers (students)? No, because people will still pay for it, although it is more expensive. This phenomenon greatly increase the financial burden of students, many owe high debt to complete the study.

Education becomes less beneficial to students. In some countries like Taiwan and Japan, you can see almost everyone is degree graduate, but real income do almost no improve. Tertiary education cost is high, but it is irrational to giving up the study. No one can deny that higher education individuals earn much higher. Without recognition of certificate is detrimental to your future career, it is the main reason of poverty. When I search the web, I notice that in Malaysia, people from board of directors and senior management mostly were graduated from foreign universities. You can try to search the information of big companies, and then you will know why rich people send their children study overseas.