In 1860, Harvard’s tuition fee was $107. While the national per capita income was $120. It means Harvard’s tuition fee was equal to roughly 11 months of per capita income. However, back in the late 19th century, Harvard wasn’t the university as it is known today. It was what today is called liberal arts college.

After nearly a century, Harvard turned into a prestigious research university as it is known today. In 1953, the tuition fee of Harvard was $800. Considering the inflation during the late 19th and early 20th century, it can be implied the tuition fee of Harvard rose by 1% annually since 1860. The tuition fee was roughly less than five months of per capita income. The drastic decrease in the tuition fee of Harvard can be attributed to substantial economic growth during that period.

The current undergraduate tuition fee of Harvard is much more staggering. The undergraduate tuition fee is roughly $44, 900. This excludes boarding, food, and other miscellaneous expenses. If these expenses are included, the total cost of education will reach around $60,000.

Considering the inflation between 1953 and 2018, Harvard’s tuition fee has increased at an annual compound rate of over 2.8% annually. This rate is faster than the national per capita income. The current tuition fee equals 10 months of per capita income of the U.S.

It’s no wonder students in the lower quartile of the income distribution are reluctant to apply to Harvard and other elite universities. These universities remain communities for the rich.

In the past eras, between 1860 and 1953, there’s was not much federal involvement in private education. So let alone regulating research funding. In 1944, the GI Bill barely touched ivy leagues. The National Science Foundation was established in 1950, which later came to dominate research funding, regulate funding, and subsidies for universities and institutions. Moreover, there were no federal student loans, Pell Grants, and other grants for college and higher education. Office for Civil Rights and the Department of education didn’t exist to regulate research regulations.

Now, however, the entry of the federal government has transformed college and university education, including at the Ivy League. Federal financial aid and grants have caused colleges to increase their fee dramatically. Federal research funding and subsidies for institutions have allowed colleges and universities to raise their fees. Student loans and grants allow colleges to extract value for themselves.

Despite a high income, tax privileges, estate taxation, and other financial privileges offered by the federal government, fees at universities have continued to rise. These privileges have helped universities and colleges to build large endowments. Private universities have submitted to the demands of the government to keep federal bounty coming. These bounties reflect in more than generous annual salaries that touch nearly $250,00 for full-time professors with minimal teaching loads. A few educators make nearly millions.

So is the Harvard of 2020 any better than its 1953 version? The cost of education at Harvard has certainly grown significantly to the extent that it is prohibitive for most students to apply for admission. Is this increase in fees accompanied by commensurate teaching quality? Or is the significant increase in the contribution of federal government leading to inequality among American universities, as universities like Harvard are taking advantage of growing resources, while smaller institutions are meagerly financed by taxpayer’s money generated through regressive income and wealth distribution.

The goal of the federal government’s contribution is to reduce the burden and make high –quality education available to economically –weaker deserving students. Harvard’s response by increasing the fee defeats the whole purpose.