The College Tuition Bubble is Bursting & Your School Can Stop It

The cost of college is rising at an unstable rate, and administrators will take the hit. StudyTree offers a unique and pragmatic solution.


Every year, we hear the same story: College tuition is increasing. Students are finding it difficult to afford college. Student debt is higher than it was last year. According to Washington Monthly, the cost of college is rising faster than the cost of medical care and almost every other product in America. These increases in tuition seem to be endless.

However, the story that does not get repeated each year is that these increases can impact college administrators in a potentially disastrous way. You might be wondering why administrators, who benefit from increased revenue, are in major trouble after tuition increases.

Here’s the answer. College tuition will eventually be so expensive that students and families will begin to look for alternatives to traditional college, like online courses (which are seeing a huge increase in enrollment) and trade schools. A sharp drop in students means that colleges will lose money and begin to implement severe cuts, starting with unnecessary members of administration and leaving thousands unemployed.

You may be thinking that colleges can simply continue to raise tuition to pay for their administrations. That’s not feasible. According to research by Bain and Company Consulting, passing the cost of tuition onto students is not sustainable because families are losing their ability and patience to bankroll education.

These increases in tuition and hiring of more and more administration are leading to a bubble, where both tuition and the size of administration are soaring way to fast. Eventually, this bubble will pop, meaning that families will not pay for tuition and administrators will lose their jobs in massive quantities.

Fueling the bubble burst is public animosity towards colleges creating a PR disaster. For colleges, public perception is critical because it draws in new students. Families know that for additional increases in college bureaucracy and administration, less money goes to faculty. In fact, the Pope Center for Higher Education Policy found that for a 5% decrease in administration, there was a 68% increase in faculty for some colleges.

It’s clear that unless colleges do something, administrators are going to lose their jobs.

What is the solution? Make the administration smarter and more efficient with StudyTree.  

In fact, with StudyTree, your college can cut tuition rates by using technology to make its administration leaner and smaller.

StudyTree has major cost reduction potential in one specific area of administration: Student Services and Tutoring. It uses technology to do many of the menial tasks like matching school-provided tutors with students, paying tutors, monitoring and checking in with tutors, and identifying students that are at risk of failing.

According to Ronald Ehrenberg, a Professor of Economics at Cornell University, colleges can “achieve efficiencies in how information technology and other support services” are used. StudyTree makes the administration more efficient and reduces the overall tuition students have to pay by cutting costs. Ehrenberg, an expert in higher education, suggests that colleges “move fully to electronic purchasing to reduce paperwork” in order to cut costs.

StudyTree frees up administrators. It has smart technology that processes tutoring requests so that administrators don’t have to. StudyTree frees up buildings. Students and tutors can meet on their own time at a mutually convenient location. Now, people and buildings can be set to accommodate the main purpose of your college: To spread knowledge and educate the future.

First it was the American manufacturing industry that was out-competed by China. Then it was the taxi industry that was overtaken by Uber and other ride-sharing apps. Now, it’s higher education’s turn to be competitive.

The bubble is bursting and your administration is on the chopping block. The only question is, are you going to save it?


By: Sohum Daftary

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