Why is a degree from New York University so expensive? Top 10 reasonshttps://secure.gravatar.com/avatar/?s=96&d=mm&r=g
Why is a degree from New York University so expensive? Top 10 reasons
The cost of education has consistently experienced an upward trajectory and it has reached unprecedented figures in recent times. A case in point is a college degree from New York University which is ranked as one of the most expensive among the higher learning institutions. But what really escalates the cost of the degree programs at New York University? Here are 10 reasons that seek to explain why the degree programs are making students part with an astronomical amount.
It’s a top private university
New York University is recognized as one of the top private universities around the globe and its status has been cemented over time due to its contributions and platform as a choice institution for many students seeking quality higher education. New York University is recognized in the same wavelength as the top elite private university like Yale, Stanford and Harvard which is why the tuition fees for its programs are quite high in line with what the other institutions charge.
Continuing expansion has ensured tuition cost remains high
A factor that has significantly contributed to the high tuition costs for students of New York University is the continued expansions. In a sharp consideration, it has been noted that the rapid expansion has required costly additions and acquisitions which have demanded investment. These expansions have been necessary in order for the university to become highly rated and funding them has led to the tuition fees for respective degrees to skyrocket.
NYU has a small endowment
Its endowment is only $3 billion which is significantly smaller than other private universities in the same league. In a bid to put this into perspective, the $3 Billion figure is roughly a tenth of the one Harvard has and only a sixth of what Stanford commands. This means that New York University does not have the luxury of investment income therefore concentrates on tuition fees to raise the funds.
What many do not realize with these institutions is that their status and brand is a factor when it comes to the pricing of the respective education programs. Since New York University has consistently appeared in the list of the “Top 10 dream schools” that the Princeton Review provides, the branding has ensured that those seeking college degrees from the institution pay a premium price.
It is basic knowledge that the location of any service institution impacts the cost of services to be received and New York University subscribes to this school of thought in a wholesome setting. Being in New York which is an expensive city to live and do business, the activities running in and around it come at a premium rate.
Large collective debt
The New York University has over time been characterized as an institution that operates on a large debt. As late as 2016, New York University recorded $659 million in debt and this is a big worry for any institution which needs to manage its operation. In a bid to manage operations and stay afloat, the tuition fees for degree programs are capped at a high setting to compensate the void brought about by the debt. The cost of tuition has to be high to enable the university handle its operation costs.
Tuition funds facility establishment
The establishment of facilities is a key element for every institution that wishes to make its mark as the best alternative for students and this is no different for New York University. Running a research and teaching institution in quite expensive and in a bid to build and operate the top-class facilities, New York University maintains its cost for a degree program on a high to fund the establishment of the respective facilities.
Students applying for their respective programs are given exquisite tours including a sneak peek of the lifestyle and top of the range urbanite life that the university will provide. In this, the institution reserves the option of setting the cost of a degree program in line with the facilities and lifestyle it promotes to the prospective students which means the individuals have to pay top dollar.
Poor financial aid packages
Financial aid for the students is limited in New York University and this translates to the eventual reality whereby the institution has to transfer the cost to the students. The financial packages do not suit the student case in point being that the financial options cover less than 64%of the cost of a degree program and this is offered in form of loans compared to other institutions that cover nearly 100% and all in the form of grants and scholarships.
High personnel costs
When it comes to personnel costs in New York, the wage bill is quite high and this has been noted as a factor when it comes to the pricing of the degree programs that New York University offers.