When I was in college a long time ago, my econ prof said as much; that demand was inelastic and they could hike it up to $20k a semester and still fill seats.
It actually all started from an innocent place iirc. Schools wanted to give more aid to disadvantaged students after the civil rights movement, so they jacked up prices on rich kids to accommodate. Then it just sort of spun out of control
I always imagine it going:
Uni admin: “They’re approving kids for how much?! Well fuck $3000 a semester, let’s triple it!”
And now universities depend on that increased revenue and there’s no simple way to roll it back.
When I was in college a long time ago, my econ prof said as much; that demand was inelastic and they could hike it up to $20k a semester and still fill seats.
It actually all started from an innocent place iirc. Schools wanted to give more aid to disadvantaged students after the civil rights movement, so they jacked up prices on rich kids to accommodate. Then it just sort of spun out of control