How has the scarcity of admission rates in premium universities contributed to the rise in tuition fees?

Clayton Christensen's predictions about the closure of colleges and universities can relate to the themes of the post-Corona business environment in several ways. Firstly, the pandemic has accelerated the shift towards online learning, which could lead to a decrease in the need for physical campuses. Secondly, the economic impact of the pandemic may make it harder for students to afford tuition, leading to a decrease in enrollment and potentially causing some institutions to close. Finally, the pandemic has highlighted the need for innovation and adaptability in all sectors, including education. Institutions that fail to adapt may not survive.

Clayton Christensen's prediction was based on several factors. Firstly, the cost of college tuition has significantly increased over the past 40 years without any notable value addition or innovation. Premium universities have used scarcity, such as low admission rates, to increase prices. These price rises have been facilitated by federally subsidized student loans, leading to a total student loan debt of $1.6 trillion. This unsustainable model, coupled with the lack of innovation in the sector, led Christensen to predict that a significant percentage of colleges and universities would go out of business.