Cornell economist Ron Ehrenberg shows why tuition keeps rising

Tuition at private colleges and universities has never been higher. It is also likely to keep on going up. With combined tuition, fees, room, board and expenses at the best institutions topping the high-water mark of $30,000 a year and rising, many students cannot attend these institutions without substantial help. More than half of the students attending select institutions receive some form of financial aid, and both the students and their families must take out hefty loans that they may still be paying off 10 to 15 years later.

Now a new book, Tuition Rising: Why College Costs So Much (Harvard University Press, 2000), by Cornell University Professor Ronald G. Ehrenberg, explains why tuition at select colleges and universities keeps on going up and what can be done about it.

Ehrenberg is director of the Cornell Higher Education Research Institute (CHERI) and is the Irving M. Ives Professor of Industrial and Labor Relations and Economics at Cornell, where he has taught for more than 25 years. He also served as vice president for academic programs, planning and budgeting at Cornell in 1995-98.

"My experiences in that [latter] role opened my eyes to why selective private colleges and universities have such a difficult time holding down their costs and why these institutions cannot behave more like businesses," said Ehrenberg. "What I learned led to this book."

Ehrenberg looks at the forces shaping higher education costs today: the drive to improve, and show improvements to attract the best students and faculty; the tension inherent in shared governance among trustees, administrators and faculty; and the impact of U.S. News and World Report and other rankings.He explores diminishing government support and discusses such external actors as alumni, local governments, environmentalists and historic preservationists.

Private colleges and universities must seize control of their rising costs, Ehrenberg insists. He suggests imposing the same fiscal discipline that state legislatures and governors impose on public institutions. He also advocates sharing resources, such as simultaneously teaching specialized courses at multiple institutions. And he stresses the continued need for financial aid to bright students who can't otherwise afford to attend the selective institutions.

For review copies of the book contact Rose Ann Miller, (617) 495-4714.

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