What Stores Like Kohl’s and Bed, Bath & Beyond Have in Common with $50K-Per-Year Colleges

Only a small number of people actually pay the full retail price. For others—folks who buy stuff on sale (and there’s always a sale), or who get financial aid—one of the reasons these institutions are attractive because it feels like they’re getting a deal.

The Boston Globe reports that the number of New England colleges topping the $50K mark for a year’s tuition and fees is about to double. Will students be turned off by the idea of dropping two hundred grand for a four-year degree? Probably not, and one reason why not is that a lot of students won’t be spending nearly that much:

New England colleges are the most expensive in the country, with the average sticker price at private colleges ringing in at $43,884 this school year.

After financial aid grants are taken into account, though, the net cost of private US colleges for the average family is $21,240 today, slightly less than it was five years ago. This is partly due to many wealthy colleges such as Harvard and Yale, which have boosted their financial aid significantly for middle- and upper-income families in recent years.

In the same way, we’re excited by the prospect of buying a car for $5,000 less than the sticker price, we’re psyched by the idea of scoring an ultra-expensive education on the cheap—even if the post-discount price isn’t really cheap at all:

Analysts say many families would choose a $50,000-a-year college if they received $25,000 in scholarships over a school that cost $25,000 to begin with. But they point out that sticker price does not necessarily correlate with quality — many mediocre schools charge as much as or more than Ivy-brand institutions.

“The reality is, many students and parents tend to judge colleges by the price,’’ said Sandy Baum, a recently retired Skidmore economics professor who is a policy analyst for the College Board. “If they lowered the price, many institutions may lose applicants because families won’t think they’re as good. People like to say they’re getting a discount.’’

Here’s hoping that by the time my kids are ready for college, there are coupon codes you can use to knock an extra 20% off tuition.

As Gas Prices Go, So Go Prices for Used Cars

What do prices at the pump have to do with prices at the used car lot? They actually tend to mimic each other. Higher gas prices tend to cause drivers to want to spend less out of pocket on their automobiles. That means rising demand, as well as rising prices, for used cars—fuel-efficient used cars especially. Used car prices spiked last summer as gas prices soared, and then spiked again earlier this year as the national average neared $4 a gallon. Now that gas prices are retreating, relief is also in sight for consumers in the market for used cars.