Education costs have been beating inflation nicely. I'm getting a degree (accounting) that doesn't require a super renowned school, so it's a cheaper program. Lenny, one thing is, the standard here is a 4-year degree. Yours would be cheap even by year 3 at our universities, but we still have another year on there. Another is, wealth redistribution. It's a growing trend to increase tuition and give more scholarships and fin aid for "less fortunate" people. If you're poor, the U.S. is a great place to goto school. If you're rich, it's a good place to goto school. If you're middle class, it's a relatively expensive place to goto school. You're expected to invest 40% of your after tax income (or at least my parents are) in your child's education.