Obtaining a college degree incurs a great amount of debt and loans because of a variety of reasons, such as technological advancement and innovation, cutbacks due to state/federal government fundings, and economic growth. Economic growth is the ultimate culprit because “of impersonal factors, such as patterns of productivity growth that favor manufacturing, or changes in the economic benefits of education, not because anyone is doing anything in particular (nefarious or otherwise” (90). College administrators are faced with the decision to either raise college tuition or lower the quality of the education provided because in order to stay competitive with other colleges, they must “attract the best workforce” (90). Maintaining a good quality education is difficult when the economy slows and the government cuts down because colleges must maintain their resources, such as providing a variety of courses to students, keeping class sizes small, fund a variety of researches, and support/maintain campus facilities. All these require a large appropriation of funds that they do not have if the cost of the tuition does not rise.
Similar to any other personal service industry, higher education is a high demanding service, and so the more that it is demanded of them, the higher the cost will be. Related to economics, as demand goes up, the price will too because colleges will be able to make a bigger profit. Following this line of logic, college presidents and committee members will try its best to attract as much students as possible—this may involve beautifying the school, renovating its education system in a variety of ways (incorporating the latest technology, etc.), expanding its name through advertisement and through establishing other institutions in other countries. A prime example of this is New York University, this institution has established itself in multiple countries including China, United Kingdom, United Arab Emirates, etc. With such an outstanding resume, NYU attracts students from across the world and is able to profit from them (NYU is one of the most expensive colleges in the world).