Buying the Professor a BMW

Perry Zirkel:

In a casual conversation between an upper-middle-class parent and a senior faculty member at a four-year institution of higher education, the parent bemoaned the steep increase in the cost of sending his youngest daughter to college, compared to that of her eldest sibling. Clearly intimating that the substantial monetary difference went into the faculty member’s pocket, the parent quipped, “I hope you are enjoying the car that I bought for you.”
This parent’s conclusion raises two questions — one about rising costs and the other about faculty salaries. Addressing these questions must take into consideration various factors. First, for example, institutions of higher education vary widely. The answers here are limited to four-year public and private, nonprofit colleges and universities. Second, the sources of data vary in their objectivity and in their time periods. These answers identify the sources, which are reputable as not particularly skewed. Similarly, although not uniformly available for the same long-term period, the cited data cover at least 8-10 years so as not to rely on short-term changes.
Question 1: Have college prices to parents really risen steeply, when inflation, institutional financial aid grants, and other sources of “tuition discounting” are taken into account?