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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (42659)	5/16/2011 9:35:50 AM
From: maverick61	Read Replies (1) \| Respond to of 78627

He is just speculating - and he is wrong. You laid out very well his fallacy about technology costs. Actually, on the software side, educational institutions recieve massive discounts on software. Costs are rising faster than inflation at the college level for these reasons: 1. The availability from our gov't of easy to obtain student loans which has increased the number of students attending 4 year colleges and allowed colleges to become flush with cash and in turn undertake expansion efforts, building programs, etc 2. The college Arms race - look at how colleges are now trying to compete with each others with massive fitness centers, luxurious student unions, fancy dorms, etc 3. Increasing overhead costs primarily due to addining administrative personnel and for a period of time, increasing salary and benefits at a rate faster than the private sector FWIW - I am a CPA who works in higher education on the financial side, so I speak from experience