A Problem of Fit: How the Complexity of College Pricing Hurts Students—and Universities

by Phillip B. Levine

A critical examination of the complex system of college pricing—how it works, how it fails, and how fixing it can help both students and universities.

How much does it cost to attend college in the United States today? The answer is more complex than many realize. College websites advertise a sticker price, but uncovering the actual price—the one after incorporating financial aid—can be difficult for students and families. This inherent uncertainty leads some students to forgo applying to colleges that would be the best fit for them, or even not attend college at all. The result is that millions of promising young people may lose out on one of society’s greatest opportunities for social mobility. Colleges suffer too, losing prospective students and seeing lower enrollments and less socioeconomic diversity. If markets require prices to function well, then the American higher-education system—rife as it is with ambiguity in its pricing—amounts to a market failure.

In A Problem of Fit , economist Phillip B. Levine explains why institutions charge the prices they do and discusses the role of financial aid systems in facilitating—and discouraging—access to college. Affordability issues are real, but price transparency is also part of the problem. As Levine makes clear, our conversations around affordability and free tuition miss a larger that the opacity of our current college-financing systems is a primary driver of inequities in education and society. In a clear-eyed assessment of educational access and aid in a post-COVID-19 economy, A Problem of Fit offers a trenchant new argument for educational reforms that are well within reach.

200 pages, Paperback

Published April 22, 2022

Reviews

[Marcy · Rating 3 out of 5]

This is an interesting read if you're deeply interested in economic systems and/or college tuition. I like the methodical way Levine goes through the process of explaining all of the various aspects of how American college fees. His charts and data about various hypothetical students and how they might interpret the opaque fees as well as how he analyzes the various options for changing the system makes for compelling reading. Economics geeks will probably enjoy how he takes readers through this process as well as a solid case study.

[Joshua Evan · Rating 4 out of 5]

An incredibly useful book that clearly explains the difficulties in navigating the finances of college. He shares the reason why tuition is so high and how the higher the tuition the better the benefit for low income students. The author also gives effective critiques and solutions to the issues families deal with when applying to colleges and looking for financial support.