The Rising Costs Of College In California

Date2015-07-11

The cost of college is rising by leaps and bounds in 2015, and property values are tied directly to property values. Each college is struggling with its own need to expand, and property values are exploding across the state. Parents and students alike are met with colleges that are nearly impossible to pay for in some cases.

#1: Costs Rising Over Other States

The recent Forbes list of the top 100 colleges had Occidental College in the top 10, but Occidental was even more expensive than Ivy League schools on the east coast. Occidental sits in a neighborhood outside Los Angeles that is unbelievably expensive. Their property is extremely expensive, and any expansion they must do costs yet more money. Students are paying over $61,000 a year to go a school that is some $10,000 more than an Ivy League school.

#2: Property Values

Students and parents in California live in homes that are already quite expensive. Parents are working hard to afford their homes, and paying for an expensive college is becoming problematic. Parents are finding the cost of college in California too high, and there are instances in which colleges out of state are less expensive for students.

#3: The Expanding Property Market

The expanding property market will continue to raise prices in California for the foreseeable future. Families in California will be left with difficult decisions every year that involve the cost of college against the cost of living in the state. Living in major cities in California is already very expensive, but the property market itself will not slow down for families who must put kids through college.

#4: Budget Cuts

Budget cuts across the state in other areas are causing a major need in other areas. Every department in the state is grappling with a lack of funds, but the state itself is not able to provide as it should. Education is one of the first things cut when the state budget is balanced, and colleges or universities do not benefit from property taxes.

California tax payers pay property taxes to the state for their local schools, but colleges and universities are left to rely on tuition increases. California is very large, and the services the states offers are quite varied. The state is not able to supplement the funds for colleges and universities in any way, and the cost of each school is rising dramatically as a result.

#5: Public Pressure

Schools are under great public pressure to provide the best education possible, and each school needs money to help make their campus better. College presidents are fundraising furiously for their schools, but the endowments for each school are not able to pay for general improvements.

Students in California are able to go to school online, and there are many students going to neighboring states for a cheaper education. Each school in California has lost students from its rolls, and their presence must be made up for with an increase in tuition.

#6: The Overall Problem

The incredible increase in tuition in California has caused problems for parents who are struggling to afford their homes as it is. Students are going to school in new locations, and schools are losing revenue with each lost student. The state cannot recover its college funding until the property values in the state relax.