Who Profits From the American Higher Education System?
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Profit Motives Are Hijacking American Innovation. The cost of higher education in the United States has become drastically oppressive in recent years. Tuition fees have inflated at four-times the rate of cost-of-living, surpassing even the inflation rate of medical costs. Last year, the average student’s tuition bill rose by 8.3%. This is partly due to substantial cuts in federal funding. In 2008, most American public universities received less than half of their funds from federal and state sources. However, increasing tuition has not helped colleges afford more resources for their students. Most universities are still struggling to compensate for lost revenues from state and local budget reductions, and actual tuition increases are less than half of the actual reduction in state and local appropriations.