The college tuition is rising year over year. However, the establishment of new universities and educational institutes and enrollment in the recent years does not seem to slow down in any way. A college degree is more and more common, with the value depreciates quickly. It is time for us to take a closer look at the cause of the inflation and recognize the problem.

1. Establishment of “Degree Stores”

Many new universities are established by big corporations, and the primary objective of these institutes are maximizing profit. These universities accept many students without much challenge, and loosely monitor the quality of education. This leads to excessive amount of university degrees being handed out to many unqualified.

2. Inelastic Demand for College Education

It has been a common understanding that college education is required for a “better future”. In my opinion, it is merely a propaganda and misconception. Many people who go into trades end up much better off than someone who complete their college education. It is definitely not the case all the time, but recognition should be given that people can do well even without a degree or pursuing the degree at a later date.

3. Easy Student Loan

Banks and government give out loans to students with little, if any, credit check. It is easier than ever to attend college, therefore the demand for college is hiked up artificially which also drives up the cost.

Many graduate from college with heavy debt load (and increasing), and the degrees they receive have much less value. This also caused some protests from students all over the world. I can’t help but wonder, if the decision of going to college is really worth it if you cannot afford it?