Is It Me Or Is This Dorm Room Crowded?

Enrollment is up this year, so up in fact that colleges are struggling to keep up. USA Today reports that many state schools are seeing far more freshmen than they anticipated. Now they have to scramble to find enough dorm rooms and classrooms to house and educate them all.

USA Today attributes part of this jump in enrollment to a weak economy. Students and parents facing tough times may decide to choose a more affordable school rather than an expensive private one. As covered in a previous post, this may not be the wisest choice considering the value a college's reputation plays when it comes to landing higher-paying jobs after graduation.

Of course, if students are residents of the state a state school is in, the price is even lower, and Mom and Dad don't have to spend as much gas money to bring care packages on Parents Weekend.

Travel expenses aside, the increased high school graduation rates and bump in enrollment suggest that Americans are taking higher education more seriously than ever. In our research report "Squeeze Play," we've seen a trend like this. Fifty percent of those surveyed said "college is necessary," and 87% percent of those interviewed - the highest percentage ever - said it's better for high school grads to go on to college because in the long run they'll have better prospects.

Soon colleges expect a decrease in numbers. Most of the Echo Boomers have arrived at age 18 and after they've all entered college, we should see a steady decline for about eight more years. One wonders what will happen to college costs when demand decreases.