COST OF COLLEGE OUTPACES THE RATE OF INFLATION

The cost of higher education has been going up. That certainly is no surprise for college students or their parents.

Tuition and fees at Missouri's regional universities such as Southeast Missouri State University averaged $2,768 in 1998. Tuition and fees for undergraduate students in Missouri have outpaced both the Consumer Price Index and Higher Education Price Index every year since 1991. Tuition costs in Missouri ranged from an average of $1,165 at a community college to $16,660 at a private university.

But can the cost of college be regulated by state government? The Missouri Commission on the Affordability of Higher Education is preparing a report on the cost of state colleges and universities. In return, the commission plans to recommend cost containment by institutions, changes in the state budget policy and improvements in the state financial aid system.

The aim is an admirable one: Make college education more affordable for more people. Some parents of small children shudder to think what a four-year college education may cost by the time their young ones graduate from high school.

But the real way to lower college costs may have more to do with supply and demand than government control. At some point, colleges will price themselves out of the marketplace. At that time, student enrollments will dwindle. Universities will be forced to cut staff and programs. Prices will have to come down as a way to attract more pupils.

The availability of scholarships and financial aid is another important factor. The cost of some four-year colleges rival the cost of a nice home. But check the records. An extraordinarily high number of these students attend on partial or full scholarships or loans. If financial aid dries up, so will enrollments.

The fact that students are graduating with a growing amount of debt is also disturbing. Average student-loan debt in Missouri for students graduating with a bachelor's degree ranges from $16,000 to $19,000. To keep costs down, institutions of higher learning should take a hard look at their offerings and staffing. How do college faculty and staff numbers compare with five years ago. How about 10 years ago? How about the number of offerings? Is duplication of services among regional colleges going up or down.

Ultimately, the consumer in this case, college students and parents will drive the cost of college education. When institutions of higher learning price themselves out of the market, the consumer will simply say: No sale.