This is one of the reasons that I favor increased public funding of public universities and junior colleges, because many students would forego elaborate benefits in exchange for lower costs -- especially after watching Millenials take on a lifetime of debt to finance an expensive "pre-adult" development phase. I think there is plenty of room in the market for private colleges (who can spend their money however they like), but public schools should have more modest expectations of what they provide.
Would raising tuitions also cause the quantity of elaborate benefits to go down?
Secondly, I don't think raising tuition would have the same effect. As prices rise, fewer students will have access to the resources required to attend at all, in which case the existing schools would be competing for a smaller group of buyers at that price. The schools would be competing with each other to provide the optimal experience those students desire in order to attract as many as possible. And this speculation isn't entirely academic (pun intended, maybe?) -- schools have been raising their prices for a few decades, and we have seen an escalating "arms race" to provide more and more "experience" benefits from public and private schools alike. Because as I mentioned before, enrollment numbers suggest that "academic rigor" and "long-term value to society" don't seem to be the driving concerns for college students.
Who is 'we'? I see this argument sometimes, but I've never heard of anyone choosing to go to school A versus school B because school B didn't have a gym. It seems like the people who want rec centers, dining halls, new dorms, etc. are school presidents -- both so they'll have something to fund raise for and so they'll have additional staff to boss around.
Top10 Party Schools: Tulane - 13531; U. of Georgia - 35197; WVU - 29175; Miami - 18456; U. of Iowa - 31387; UofT - Austin - 51313; U. of Wisconsin - 43193; UCSB - 23051; Howard - 10265; Ohio University - 29217 Total: 284785
Top10 Schools (overall): Princeton - 8125; Harvard - 21000; Yale - 12336; Columbia - 29870; Stanford - 16136; U. of Chicago - 14467; MIT - 11319; Duke - 14850; U. of PA - 24806; Caltech - 2209 Total: 155118
As far as I can tell, costs for educating one student average around 1/4th of U.S. levels[2], despite also having a very high administrator/educator ratio. We generally don't have lush campuses or dorms, university sports exist but are something completely different etc. My sister went to Stanford, so yes, U.S. unis are really nice. But maybe not all of that is strictly necessary.
It seems to me that you can get away with government funding if both sides are government-controlled. It's the "Public Private Partnership" angle where you combine the profit motive with effectively unlimited government funding that you get in trouble. "Privatize profits, socialize losses(/costs)".
[1] http://www.bbc.com/news/magazine-32821678
[2] http://www.marketplace.org/topics/education/learning-curve/h...
Isn't this pretty much disproven by your previous paragraph? The reason why the arms race happened is because students chose schools that offered these amenities regardless of how much that increased the price.
Not really. Consider the alternative: public universities are 100% free to students, who must in turn maintain their GPA and achieve minimum progress to remain enrolled. Some public funds are allocated to student services, even while we pare back subsidized loans and grants. Students who are price sensitive will go to a public uni, while others with different objectives and expectations are free to take on loans or self-fund attendance at their preferred private uni that better caters to their goals.
The main drivers of administration overhead is mismanaged IT, and external administration requirements such as the certification song and dances.
Of course there's inefficiency in every large organization, but that doesn't mean you can get rid of it. Every large organization tends to follow Pournelle's Iron Law of Bureaucracy (http://www.jerrypournelle.com/reports/jerryp/iron.html), which basically says that over time people who are looking out for the organization's interests (as opposed to the organization's purpose) will always end up in charge.
do you have a source for that?
"The compliance problem is exacerbated by the sheer volume of mandates—approximately 2,000 pages of text—and the reality that the Department of Education issues official guidance to amend or clarify its rules at a rate of more than one document per work day. As a result, colleges and universities find themselves enmeshed in a jungle of red tape, facing rules that are often confusing and difficult to comply with."
You will never see a reduction in the number of college bureaucrats while the federal government micromanages higher education.