Why is Higher Education So Expensive?

It’s no secret that U.S. college tuition costs are rising dramatically, and the increasing cost of higher education burdens young people and their families. How can we make college more affordable? Many suggest that the best way to keep tuition affordable is by increasing government assistance through student loans, grants, and tax credits for education.

In this video, produced by Learn Liberty, Professor Daniel Lin shows that doing so will actually lead to higher college costs, because loans/grants/tax credits are directly related to the increasing cost of education.

This video was provided as a basis for context to Dan Mitchell’s analysis in Hillary Clinton’s Plan to Increase the Cost of College.

It is important to understand the root cause of the rising prices. In the video, Professor Lin explains that increased demand—fueled by improved job prospects for graduates and increased government assistance—is to blame for soaring tuition prices. Knowing the cause should inform our search for a solution.