In 1990, a full year of arts and science cost $1344.00
In 2010, a full year of arts and science cost $4900.00
That is an increase of almost 650%. To put that into perspective, housing inflation since 1980 has increased by 350%, while inflation has increased just over 150%.
This chart shows tuition fees across Canada versus inflation between 1990 and 2005.
Higher Education's Bubble Ready To Burst (from the US)
It's a story of an industry that may sound familiar.
Consumers would balk, except for two things.
First -- as with the housing bubble -- cheap and readily available credit has let people borrow to finance education. They're willing to do so because of (1) consumer ignorance, as students (and, often, their parents) don't fully grasp just how harsh the impact of student loan payments will be after graduation; and (2) a belief that, whatever the cost, a college education is a necessary ticket to future prosperity.