College Education Becoming Expensive
With the total debt amount exceeding $1 trillion, most students and parents across the world are being troubled by one thought regarding the expenses of a college degree popping into their minds. Though Congress had proposed the Student Loan Forgiveness Act at the start of March, the bill received much opposition. The opposition came in the face of the increasing student debt numbers.
When the bill was initiated by Congress, a section demanded that the students who were financially restricted could have well attended Public universities triggering the fact that the increasing number of debts is resultant of private education. However, USA Today has stated that the college and university costs at public institutions have increased by 8 percent by the end of 2011.
Furthermore, in 2004 public institutes increased a rise of 11 percent in their tuition costs. A parent has said on Forbes that the tuition cost for their son’s education during college has almost doubled during the tenure of 4 years. A student also stated that she selected the university based on the scholarship availed because it made college education affordable for her. However, things took a different turn post one year at college, as the scholarship was taken away regardless of her GPA being on the way up.
In addition to all these issues that have been troubling college students, the latest information states that the lending issued by the state in 2010 has dropped by 4 percent and gone down by 23 percent over the last decade. According to the American Council on Education president, Molly Corbett Broad on USA Today, the trend of dipping inside the pockets of families and students for balancing the state budgets has become common for state legislatures.
When Hansen Clarke, a Michigan Congressman, initiated the bill “The Student Loan Forgiveness Act, most people were annoyed by the fact. According to the act, the borrowers would require to repay a minimum of 10 percent of their income for at least 10 years (public servants are required to pay for five years) via a monthly payment structure. The remaining balance left from then would be forgiven.
The College Board has predicted that the average cost of tuition from 2011 to 2012 is likely to be around $17,131.
According to the reports of Business Insider, around $70,000 extra cost of college is not included in the estimation like the cost of transportation, computers, cell phone, laundry, college tour costs, and other such expenses.
A number breakdown from Forbes has estimated that parents willing to save for the education of their children are required to save around $925 on a monthly basis or $ 600 for an account accruing interest.
Others opposing the Student loan Forgiveness Act had recommended the option of students working while studying in college.
However, this suggestion was also put to criticism stating that students who are working are more likely to have lower grades, even though the benefits can be many. Students working while studying at college are less likely to qualify for financial aid and scholarships.
Clarke, however, made it clear that the main intention of proposing the bill was to raise the economy by focusing on an issue that is not in control. He further said in the bill that the rising number of student debts is obstructing the growth of the economy in the USA. Individuals troubled with the burden of repayment are not being able to make investments or start businesses.
College Education Becoming Expensive
A. Explanation of the rising cost of college education:
College education has become increasingly expensive in recent years, with the cost of tuition, room and board, and textbooks rising rapidly. The cost of a college education has far outpaced inflation and the growth of family income, making it increasingly difficult for families to afford a college education. This rising cost has made access to higher education more difficult for low-income students and has resulted in many students taking on large amounts of debt to pay for their education.
B. Importance of the issue:
The rising cost of college education is an important issue for several reasons. First, access to higher education is crucial to the economic success of individuals and the country as a whole. A college education is increasingly necessary to secure a good-paying job, and without it, many people are left struggling to make ends meet. Second, the burden of student debt has become a major issue, with many students struggling to repay their loans and make progress on their other financial goals. Finally, the rising cost of college education has the potential to exacerbate existing inequalities in access to higher education, as low-income students and students of color are disproportionately impacted.
C. Overview of the post:
This blog post will explore the factors contributing to the rising cost of college education, the consequences of expensive college education, and potential solutions to address the issue. By understanding the underlying reasons for the rising cost of college education, we can better identify solutions to make higher education more accessible and affordable for everyone.
II. Factors contributing to the rising cost of college education:
A. Decreased state funding for colleges and universities:
One of the primary factors contributing to the rising cost of college education is decreased state funding for colleges and universities. State funding for higher education has decreased significantly over the past few decades, leading many public universities to rely more heavily on tuition revenue to cover their operating costs. This decreased funding has forced many public universities to raise tuition to compensate for the loss of state funding, making higher education less accessible and more expensive for students and families.
B. Administrative bloat and increased costs of non-teaching staff:
Another factor contributing to the rising cost of college education is administrative bloat and increased costs of non-teaching staff. As universities have become more complex organizations, there has been an increase in the number of administrative and support staff needed to run the institution. This increase in staff has resulted in higher salaries, benefits, and administrative costs, which are ultimately passed on to students in the form of higher tuition and fees.
C. Expensive technology and facilities:
Colleges and universities have also been investing more in expensive technology and facilities to attract students and compete with other institutions. While these investments can improve the educational experience for students, they also come with a high price tag. The cost of constructing and maintaining these new facilities is often passed on to students, leading to higher tuition costs.
D. Increased demand for higher education:
Finally, the increased demand for higher education is also a factor contributing to the rising cost of college education. As more students pursue higher education, colleges and universities have had to expand their programs and facilities to accommodate the increased demand. However, as the supply of higher education has not kept up with demand, this has created a situation in which students are willing to pay higher tuition costs to secure a spot at their desired institution.
In conclusion, the rising cost of college education can be attributed to a variety of factors, including decreased state funding for colleges and universities, administrative bloat and increased costs of non-teaching staff, expensive technology and facilities, and increased demand for higher education. Understanding these factors is essential to finding solutions to make higher education more affordable and accessible for everyone.
III. Consequences of expensive college education:
A. Limited access to higher education:
The rising cost of college education has made it increasingly difficult for low-income students to access higher education. Many students from low-income families may be discouraged from pursuing higher education due to the high cost, which can limit their ability to achieve their academic and career goals. Additionally, some students who are accepted into colleges and universities may not be able to attend because they cannot afford the cost, which limits their ability to benefit from higher education.
B. Burden of student debt:
The cost of college education often results in students taking out loans to cover the cost of tuition, housing, and other expenses. As a result, many students graduate with a significant amount of student debt, which can be a burden for years to come. Student loan debt can limit a graduate’s ability to make major purchases such as a home or car and can also delay starting a family. Additionally, the burden of student debt can limit career options, as graduates may be more likely to pursue higher-paying jobs rather than jobs in their desired field.
C. Difficulty in pursuing future financial goals:
The high cost of college education can make it difficult for graduates to pursue their future financial goals. Graduates with significant student debt may need to delay saving for retirement or other long-term goals, and may also struggle to build an emergency fund. The cost of college education can also impact a graduate’s ability to pursue further education or training, which can limit their career advancement opportunities.
In conclusion, the consequences of expensive college education include limited access to higher education, the burden of student debt, and difficulty in pursuing future financial goals. It is important for policymakers, educational institutions, and individuals to work together to address the rising cost of college education and make higher education more accessible and affordable for all students.