People have a hard time predicting the future especially when it comes to economic behavior. Many people saw the housing boom and bust but few had the wherewithal to take action at optimal points.
Advertisement Historical Inflation Rates The following table shows the college cost inflation rate and the general inflation rate for the years from through College cost inflation rates are based on the Digest of Education Statistics for the years and the College Board figures for four-year private colleges for the years from to the present.
Statistically, there is no correlation between college inflation rates and general inflation rates. After all, increases in college tuition rates represent a very small percentage of the CPI.
Even the rule of thumb that college costs increase at twice the inflation rate is not valid. As can be seen from the table, the college cost inflation rate has run from a high of 6.
This trend may be ending because of the souring economy. Please note that the College Board annually recomputes the base year cost averages when it calculates the current year averages. The new base year cost averages can and often do differ from the averages reported during the previous year.
As such, the College Board figures are not based on an index like the general inflation rates. The College Board reevaluated its methodology for the academic year, but did not make any fundamental changes other than improving the explanations of their methodology.
Since the Consumer Price Index includes a "College tuition and fees" component, it is possible to use that component as an index of historical tuition inflation.
It reflects consumer spending on college tuition during the calendar year and is based on the same methodology as the Consumer Price Index. The second table provides these figures.
Note that these figures show an average tuition inflation rate from to of 8. The cumulative difference from to is three quarters of a percentage point per year.May 26, · This feature is not available right now.
Please try again later. Multiple Choice Questions 1.
Why is private ownership an important source of economic prosperity? c. Increases in taxes are the primary cause of inflation. d. Business taxes generate government revenue without imposing a burden In order to achieve a high economic freedom rating, a country must a.
elect political officials democratically. Official website of the Massachusetts Department of Higher Education. A good rule of thumb is that tuition rates will increase at about twice the general inflation rate.
During any year period from to , the average annual tuition inflation rate was between 6% and 9%, ranging from times general inflation to times general inflation. This post seeks to understand how educational characteristics (school type and selectivity, graduation status, major) and family background relate to the incidence of student loan default.
This trend of grade inflation—the gradual increase in average GPAs over the past few decades—is often considered a product of a consumer era in higher education, in which students are treated.