Second/Third Tier College Ripoffs

Finally, an article from Forbes that asks the question, ""Why do second and third tier schools cost as much as Harvard?". The author says the answer is because they can!

We believe that as long as the gov't provides the funding needed for college loans and colleges are free to charge what they want because there is no free market for education, the situation will exist.

• The author believes that over the last 30 years the demand has risen for college education and supply has not kept up.
• But financially unsavy parents are also the problem and their notion that a higher price makes something better. The author puts it best: " For parents like that, in fact, price may be part of the appeal. It's what's known in college circles as the "Chivas Regal effect" - a lofty price is a sign of status; discounting would tarnish the image."

http://money.cnn.com/2009/04/10/news/economy/kaplan_college.fortune/index.htm?postversion=2009041007