[kdoherty]

I recently ended up in an interesting conversation with a university faculty member where we found that many of the most endowed universities could essentially make undergraduate education free and make back the difference (and often more) on straight interest accumulated from leaving their money in a bank.

Given that they are probably making more than the current interest rates by investing, I wonder why students still pay so much for tuition at these universities in particular.

[charlesdm]

Because they can charge that much, and people are willing to pay the amounts they pay. Wouldn't be very exclusive now would it, unless you're charging $100k a year?

[cwkoss]

Because university administrations tend to prioritize job security and regular raises for themselves over providing an affordable education.