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<p>The perception that a better school results in better earnings and
opportunities over a lifetime has created a lot of demand.</p>
<p>Easy credit in an industry tends to create bubbles.</p>
<p>We had a boom in prosperity that has ended for now. During that boom,
parents and students expected more and more and more from their
schools and providing those facilities, professors and services
costs money.</p>
<p>The growth in remedial services offered by schools. My daughter’s
school offers some impressive remedial services with rooms and
staffs for multiple core subjects. I believe that they staff these
with professionals; not students.</p>
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<p>Schools come right out and say that they are doing this. At my son’s
school, they said that they were raising prices and that part of the
reason was to provide more financial aid. Private schools may want to
build a particular class that includes those from different economic
backgrounds. Public schools may say that they want to provide
opportunities for all in their state. Some publics use out-of-state
students as profit centers to fund financial aid for their in-state
students in addition to providing geographic diversity.</p>
<p>The area of full-pays vs financial aid is often a hot one on College
Confidential - similar to the class wars being played out in the
political sphere.</p>