There’s debate about that. One key factor for public institutions is a significant decline in funding from many state governments. States spent about $10.50 per $1,000 in per capita state income on higher education in 1975, but only about $6 in 2012, according to one analysis.
Some observers say colleges have little incentive to cut costs because students and parents place such a high priority on college and are willing to take on debt. They say colleges are spending more than they should on amenities and administration.
Others say technology has driven down costs in other industries, but higher education is still largely (and understandably) dependent on personal interactions with professors.
