The growing cost of education has exceeded inflation rates and recent college graduates are forced to defer on student loans they can't afford to pay off. An in depth look on the rise in university tuition and the high price America's youth now has to pay.
The topic of student loans and the price of higher education is a topic I feel very passionately about. As a recent college graduate it is my generation and my peers that are hit the hardest with the repercussions of their debt in a highly competitive and stagnant job market.
It is difficult to disassociate the connection between the evils of money and what is happening to students across the country. An article from Freakanomics points out the rapid rise in college costs:
- Published in-state tuition and fees at public four-year institutions average $8,244 in 2011-12, $631 (8.3 percent) higher than in 2010-11. Average total charges, including tuition and fees and room and board, are $17,131, up 6.0 percent.
- Published out-of-state tuition and fees at public four-year colleges: Average total charges are $29,657, up 5.2 percent.
- Published in-state tuition and fees at public two-year colleges average $2,963, $236 (8.7 percent) higher than in 2010-11.
- Published tuition and fees at private nonprofit four-year colleges and universities: Average total charges, including tuition and fees and room and board, are $38,589, up 4.4 percent.
- Published tuition and fees at for-profit institutions average an estimated $14,487 in 2011-12, 3.2 percent higher than in 2010-11.
At even faster rates than healthcare costs, the price for a higher education has skyrocketed for inexplicable reasons. Obviously state schools are affected by budget cuts that schools compensate for in higher tuition. But private school tuition costs are rising at an almost equal pace.
"One thing, however, is not debatable: The price of college has steadily outpaced inflation over the last 30 years." - Matthew Philips
In the 1990s when a good economy and booming stock market led to a flow of endowments and donations to colleges, many private 4-year schools still chose to increase tuition.
From 2010 to 2011 family incomes across all economic standings dropped while tuition costs have steadily increased. How are parents and high school graduates supposed to compensate for this lack?
A 2011 poll of Americans between the ages of 18-29 found that:
- 77% of young people ages 18-29 either have or will delay a major life change or purchase due to economic factors:
- 44% delay buying a home; 28% delay saving for retirement; 27% delay paying off student loans or other debt; 27% delay going back to school/getting more education or training; 26% delay changing jobs/cities; 23% delay starting a family; 18% delay getting married.
And here we are today, thousands continue to Occupy Wall Street in cities across the country and now in other parts of the world. These conditions will breed fear and anger and revolutions will only follow.
According to College Board, student enrollment has not slowed despite issues and concerns with affordability. "Total postsecondary enrollment increased by about 22 percent between 2005-06 and 2010-11. Full-time enrollment increased more rapidly than part-time enrollment." Americans know that as hard as life is with an education, it is twice as hard without one. Talk about a catch 22.
There are a variety of theories floating around about what can be done. Some are wondering whether a college education is worth that price, weighing out the level of education students are receiving against the costs they are paying.
Many are advocating the growth and development of digital and online education. The frontier will be a revolution in traditional education and how students are actually taught. With the accessibility of resources and trusted information on the Internet, it is technology that will forge the way for knowledge. Students will depend on institutions for human interaction and building social skills.
Our educational systems need to reevaluate teaching standards and higher education. Class room time, credits hours, and of course the cost of education... there needs to be change.
President Obama recently proposed a student loan forgiveness plan that is currently being debated and criticized by many.
What do you think we can do to alleviate these issues? To what extent do you think the government should be involved? Share your thoughts!
