The rising cost of private higher education

The report illustrates the informational and analytical basis on which one high-cost institution—Yale University—sets its annual tuition levels and long-term pricing policies. The rising cost of private higher education in general, and of a Yale education in particular, is examined in a context that takes into account historical trends, economic data (price and income inflation), the financial condition of the institution, comparative cost data from other schools, and studies of the impact of cost on enrollment. The results suggest that current educational costs, despite their recent rapid increases, are not significantly above historical levels (after adjusting for inflation), are not unfair to students, are affordable to most families, and are in line with the costs of other private institutions. No serious impact on the quality or diversity of the student body was discovered.