For anyone taking out loans to attend college, the University of Michigan/Flint economics professor Mark Perry recently tweeted some statistics worth considering when it comes to the cost of college textbooks.
In the 36 years between 1978 and 2014:
- the Consumer Price Index increased 257%;
- the cost of new homes rose 375%;
- the cost of medical care has increased 588%; and,
- the cost of college textbooks has risen 864%.
Concerning the price of those textbooks:
- since 2001, textbook prices have more than doubled;
- 64% of college students don’t purchase required textbooks;
- 94% of those who don't purchase required textbooks admit risking a lower grade, so they borrow textbooks from friends, rent the textbooks, or try to access a copy in the library or online.
So, over a period of four years, the average undergraduate will spend ~$5k on textbooks and other supplies. That's a paltry amount when compared to the total cost of the loan the student will pay for four years of tuition and room and board.
Fair enough. But, that whopping 864% increase isn't all that different from the increase in the cost of tuition between 1978 and 2014.
That's not a bubble?
Let the discussion begin...
To read Professor Perry's tweet, click on the following link:
To read the Bloomberg News story about college textbook inflation, click on the following link:
To read the US News story about college textbook inflation, click on the following link: