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In summary, the reason (from a spending perspective) presumably non-profit colleges are so expensive in the US is that US colleges spends 2x/student as much on

In summary, the reason (from a spending perspective) presumably non-profit colleges are so expensive in the US is that US colleges spends 2x/student as much on staff and faculty as many OECD counterparts. College faculty, staff, and administrators form a large constituency that will be campaigning to keep spending (private, public, or otherwise) up, which campaigners for lower higher-educational spending will need to keep in mind.

jayd16 8y ago
If the free market is the answer why aren't there a swath of good and cheap private options?
- sheepmullet 8y ago
  There are good and cheap alternatives. My community college was 1/3rd the cost of college. The problem is students don’t understand what they are getting themselves into.
  - topkai22 8y ago
    Also it’s almost impossible for private entities to compete with heavily subsidized public institutions on price, so they need to compete in other ways, like superior marketing, ease of financing, or “quality” If states let their subsidies flow to private institutions on a per student basis, you could get some interesting results, but frankly I think community colleges are already so efficient it’s a crowded market.
    - jayd16 8y ago
      >Also it’s almost impossible for private entities to compete with heavily subsidized public institutions on price, so they need to compete in other ways, like superior marketing, ease of financing, or “quality” The entire argument is that they would be cheaper. You could argue they might be better but saying they can't compete on price just concedes the point.
      - topkai22 8y ago
        Old thread now, but the reason I said they can’t compete on price is states subsidize state universities to the tune of $7100/student/year (https://www.cbpp.org/research/state-budget-and-tax/funding-down-tuition-up https://www.cbpp.org/research/state-budget-and-tax/funding-d...) (some of that goes to grants transferable to private institutions but I don’t think it is much) If you instantly dropped that subsidy and increased per student tuition at state schools by $7000 (I don’t recommend this) there would quickly be private options strongly competing on price I bet.
- mhh__ 8y ago
  In a market, for example in this one where there is a lumbering - government backed - behemoth distorting it, it may not be viable to create new options. Starting a new University, especially a for-profit one, and marketing it right is probably one the biggest challenges I could think of for a business.

jayd16 8y ago

If the free market is the answer why aren't there a swath of good and cheap private options?

sheepmullet 8y ago
There are good and cheap alternatives. My community college was 1/3rd the cost of college. The problem is students don’t understand what they are getting themselves into.
- topkai22 8y ago
  Also it’s almost impossible for private entities to compete with heavily subsidized public institutions on price, so they need to compete in other ways, like superior marketing, ease of financing, or “quality” If states let their subsidies flow to private institutions on a per student basis, you could get some interesting results, but frankly I think community colleges are already so efficient it’s a crowded market.
  - jayd16 8y ago
    >Also it’s almost impossible for private entities to compete with heavily subsidized public institutions on price, so they need to compete in other ways, like superior marketing, ease of financing, or “quality” The entire argument is that they would be cheaper. You could argue they might be better but saying they can't compete on price just concedes the point.
    - topkai22 8y ago
      Old thread now, but the reason I said they can’t compete on price is states subsidize state universities to the tune of $7100/student/year (https://www.cbpp.org/research/state-budget-and-tax/funding-down-tuition-up https://www.cbpp.org/research/state-budget-and-tax/funding-d...) (some of that goes to grants transferable to private institutions but I don’t think it is much) If you instantly dropped that subsidy and increased per student tuition at state schools by $7000 (I don’t recommend this) there would quickly be private options strongly competing on price I bet.
mhh__ 8y ago
In a market, for example in this one where there is a lumbering - government backed - behemoth distorting it, it may not be viable to create new options. Starting a new University, especially a for-profit one, and marketing it right is probably one the biggest challenges I could think of for a business.