College tuition rises faster than inflation.

Just this past weekend I received a letter in my campus mailbox about the tuition increases for next year. So I went and looked it up and it turns out that tuition is rising everywhere at a pace faster than inflation. According to CNNMoney tuition increases have been going at a rate of about 2.3% per year. So why the change?

The link above explains all of the many details ranging from labor costs to even some school's wanting more prestige which can in some ways be acquired by a higher price. Will financial aid increase? Do you think colleges are increasing tuition for the right reasons? Is it really that necessary?