“The decline of the American system of higher education has many causes, several of which I have catalogued over the years, but one of the most popular reasons is overstated: cost. Higher education in America is becoming more affordable, as the laws of supply and demand are turning a crisis into a manageable problem.

As college became more expensive in the decades before and just after the turn of the century, students and their families adjusted. Many opted for a cheaper version of the basic product, such as state schools or junior colleges. Others went to vocational school or did something altogether different. In response to these market pressures, colleges have responded by making their product cheaper, as outlined in a new report from the College Board.

There are a lot of numbers, but here is the comparison I find most impressive: Adjusting for grants, rather than taking sticker prices at face value, the inflation-adjusted tuition cost for an in-state freshman at a four-year public university is $2,480 for this school year. That is a 40% decline from a decade ago.”

From Bloomberg.