Page 60 - Crisis in Higher Education

34 • Crisis in Higher Education

So $1.00 spent on tuition and fees in 1985–1986 would cost $3.22 in
2015–2016, after adjusting for inflation. If tuition and fees had increased
at the same rate as inflation, $1.00 spent on tuition and fees in 1985–1986
would cost $1.00 in 2015–2016 after adjusting for inflation. So it is clear
that tuition and fees grew much faster than the rate of inflation during
this period.
More recent data show that the cost of public higher education con-
tinues to increase faster than the rate of inflation. According to the
Department of Labor, the price index for tuition has increased by 79.5%
from 2003 to 2013, nearly doubling the rate of increase in medical care
at 43.1% and growing three times faster than the Consumer Price Index
(CPI) at 26.7%. During this time, women’s and men’s apparel increased
by 5.6% and 6.9%, respectively, housing was up by 22.8%, and the food
and beverage category increased by 31.2%. These data are summarized
11
in Figure 2.1. By comparison, the federal minimum wage was $5.15 in
2003 and $7.25 in 2013. The minimum wage increased by 40.8%, which
12
is faster than inflation but slower than the rate of increase in tuition
and fees, making it more difficult for students to work and earn enough
money to pay for their education.
This rate of increase in tuition cannot and must not continue.

Consumer price index 26.70%

College tuition 79.50%
Medical care 43.10%

Food and beverage 31.20%

Housing 22.80%

Men’s apparel 6.90%

Woman’s apparel 5.60%

FIGURE 2.1
Percent change in Consumer Price Index (CPI) and various components of CPI,
2003–2013. (From Kurtzleben, D., Charts: Just How Fast Has College Tuition Grown?
US News World Report, 2013. http://www.usnews.com/news/articles/2013/10/23/
charts-just-how-fast-has-college-tuition-grown.