Taylor
Johnson
Mrs.
Straub
Economics
17
March 2014
Is The
Cost Of College Worth It?
With
spring break quickly approaching, high school seniors are beginning to prepare
for an even bigger celebration – graduation.
As their days in high school come to a close, the question they have all
been asked since the first day of kindergarten suddenly doesn’t seem too
farfetched: what do they want to be when they grow up? For some, college
decisions have already been made, housing contracts signed, and roommates found.
For others, military recruiters have been contacted and boot camp is only a few
months away. But for the rest, it’s time to make a decision.
High
schools around the country have had a continuous push for higher education and
stimulating educational experiences after graduation. But with the continually
increasing cost of college tuition, many students are forced to choose between a
college education and a secure bank account. Students need money for college,
college to get a steady job, and a job to make money. Who decided upon this
system? When forced to choose between their own education and their current
financial status, students must weigh the opportunity
cost of selecting a university vs. finding and maintaining a full time job.
According
to the New York Times, “college tuition continues to outpace median family
income and the cost of medical care, food and housing.” Although a college
education opens up countless doors for opportunity after graduation, including
an average of 80% more income than students only receiving a high school
diploma, a family should not be paying more than their annual salaries to send
their child to school.
It
is no question that college is becoming more and more expensive each year, but
rather what it is that is causing this steep incline. As students are beginning to discover the benefits of a college
education, the demand continues to increase. There are only so many
classrooms, dorms, and professors at a university however; and as the number of students continues to
increase, supply and access to these necessities decreases. In order to
accommodate the growing number of students, universities need to expand.
Building new education and housing buildings is not a cheap affair and needs to
be funded for somehow, so another few hundred dollars can be tacked onto
tuition to cover it. As college becomes
more competitive and the number of available spots decreases, students suddenly
are willing to pay more for their education and when the students are willing
to pay more, why would the university want to lower tuition and accept less?
Prior
to committing to a university, prospective students must first weigh the marginal costs and marginal benefits of
a college education. The marginal benefits largely being a more expansive
educational experience, greater knowledge, and a larger salary, which of course
sound great in theory but with an average marginal cost of nearly $10,000 per
year at public universities nationwide, students must determine if the eventual
benefits outweigh the current costs.
It
is no easy task to make decisions for our future, but when forced to choose
between financial securities now or a greater salary later, the decision
becomes even more complex. In order to fully be sure you are making the right
decision when it comes to higher education, make it an informed one by
comparing and contrasting the possible benefits of a college education vs. working
a full time job after graduation.
Works
Cited:
"Cost Of College." College
Data. N.p., n.d. Web. 17 Mar. 2014.
<https://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10064>.
"How to Get College Tuition Under Control." The
Wall Street Journal. Dow Jones & Company, n.d. Web. 17 Mar. 2014.
<http://online.wsj.com/news/articles/SB10
"Soaring College Tuitions." The
New York Times. N.p., n.d. Web. 17 Mar. 2014.
<http://www.nytimes.com/imagepages/20
Clearly there is a push for student to further their education in college despite the economic cost they will endure, even after they graduate as debt still looms over them. However, not everyone has to go to college. Careers in the trades such as electrical and pluming do not require a college diploma and may be a serious option for some. For those who are looking to pursue a career elsewhere where further education is needed the only option truly is college. Student just hope that the opportunity cost of going to college will result in great benefits if and when they land a stable job after graduation.
ReplyDeleteWe've all seen the data showing that on average, the higher degree you earn, the more money you make. But the college payoff also depends on the major you choose. A degree in Medieval Poetry is much less likely to pay itself off than a business degree. This is an extreme example, but the theory applies to fine arts degrees, liberal arts, philosophy, and others. This adds yet another complexity to the important college decision.
ReplyDeleteWhen you actually look at the data that colleges keep raising their price, it is quite scary. You also brought up a good point with the opportunity cost of going to college and/or not going to college. Something to think about is if people will start substituting college for other things like going right into the work force due to the constant rising price of college. When things get more scarce, people have to start substituting.
ReplyDeleteWow, once I think about it college is way too expensive for just an average person to pay on their own without government funds. The rising price of college is getting absolutely ridiculous and will soon not be worth it for student to go get an education over working full-time to start making money. We've all heard of the stories of people never going to college and making millions. But somehow we all still turn to college as the first choice.
ReplyDeleteThe problem with capitalism is that people have to make a profit from every type of service and the flagrant exploitation of these services is definitely more apparent within the United States. A multitude of other nations, mostly European, allow their students to go to university for FREE, but they still have to work hard to meet the standards of each school's respective application requirements. However, we must also remember that we house the best universities in the world; that's why the brightest minds from all over the globe still come here. That's also why the demand is so high; foreigners want to attend our schools, limiting availability to our citizens. Then there's the selective algorithm that most colleges nowadays seem to use during the acceptance process. This process limits mono-ethnicity on campus, making them more inclined to choose a foreign student than your average suburban high school graduate. We really need an overhaul of our education system soon.
ReplyDeleteIn today's society, it doesn't always feel like students have a choice of whether to go to college or not. The push to achieve a high paying full time career after 4 years is in high demand but how do people expect to reach that goal if they can't afford to get to college in the first place? College is almost a necessity now and without government support it is becoming increasingly more difficult.However, although the cost is high, the demand for college has yet to decrease.
ReplyDeleteAs college inches closer and closer, I think all the seniors can relate to your post. I know that I myself, like the private college experience more than the public - smaller class size and more opportunities to meet with professors instead of teacher assistants. However, with that comes the $40,000 tuition, which is a lot compared to the UW schools cheaper tuition. I think personally the opportunity cost for spending money on a college education is higher than just working a minimum wage. With a post-high school education, you can make a lot more than minimum wage an hour which would give you the opportunity to have a more successful life. So personally I think that college is a necessity before going out into the real world.
ReplyDeleteI can definitely relate to your post! :) college is expensive and it stinks because pretty much all students coming out of college are in debt. It was a good question to ask why college is so expensive. I guess I knew but didn't really realize that colleges do need to pay for expansion, food, etc. It was a cool fact to learn that your wage increases 80% if you have a college degree. It makes sense then why the demand for college is so high. How does scholarships and grants take into affect? This was very well written!
ReplyDeleteEverything mentioned was very true and the struggle is real. The more i think about college, the more i stress and the more i feel i need to save. College is very expensive, and you made a great point that the as students are beginning to discover the benefits of a college education, the demand continues to increase. Also knowing that there is only a certain amount of professors, dorms, and colleges. People are going to start to be willing to pay more to get in and have the great benefits of having a greater education and experience living on campus and being on your own for the first time of their life. College is a necessity because that is what will lead you to a higher paying job vs. where you worked in high school. College is the first step of your future and sometimes that's a very scary thought.
ReplyDeleteI really appreciated this post, because this relates to me greatly. I've personally been experiencing conflict with college decisions. The college I've been looking at is about $40,000 a year, so it's no surprise that this has caused some conflict and definitely weighing of opportunity costs for myself. A secure bank account is something I would like to have, but the opportunity cost of going to college is something I just can't afford to miss out on. In an economy like ours, and applying for colleges that have high prices, it's important to really weigh all options and be smart about or college decisions. Thanks for the share!
ReplyDeleteThe prices of college tuition are absolutely ridiculous these days. They get so much money out of people these days, it is causing families to worry a lot more than they need to. Students are paying off loans from college for the rest of their lives and it is altering how they have to live the rest of their years when they shouldn't have to. I believe that college should be nowhere near as expensive as it is, but there is nothing we can do, and it will always continue to increase.
ReplyDeleteI like that you chose this topic because of how relevant it is to all of us going off to college next year. College is definitely stressful when it comes to the cost. However, I wish you would have mentioned loans, scholarships, and financial aid. While college price increases, so does our opportunity to take out loans and apply for scholarships and financial aid. Loans may create debt for students, but most are put on hold till a year after students have completed their education. Careers that require more school, pay a greater income. Therefore, students might develop more debt, but their careers will help them pay that debt off. College is an investment with a very successful outcome.
ReplyDeleteI remember in current issues class when this topic was a big deal. We talked about the same question. College is very important and is worth it. College is bad because of the cost to get in, but it is worth it. Both of my parents went to college, and they both job careers from their education from college. College is the necessary thing to do for the future and without it, people will have a lower chance of getting a career.
ReplyDeleteIn present times its become almost where you don’t have a say in whether you want to go to college or not. It is looked upon and favored greatly by teachers, councilors and everyday jobs. It seems that if you want to have a good job and pay you’re going to have to go to college no matter how much money it will put you in the hole with money. So now no matter what we want weather to go to college we are almost forced to and have to deal with the debt for the education you want and need for jobs.
ReplyDeleteCollege tuition prices have become something that nearly every college student has to plan their life around. Saving beforehand, paying off afterwards, it seems life revolves around this payment. Meanwhile, students that choose not to go to college have time to save up their earnings to pay for college in the future, which seems a more wise choice.
ReplyDeleteIt’s obvious that the cost of a college degree has raised substantially, with over a 400% increase since 1982-84, but is it still worth the money? There are many college students stuck working at part-time fast food establishments rather than their field nowadays, was their education worth it? While before having a college degree could ensure a stable job and financial stability, making it worth the high costs, it seems that more and more grads are finding themselves in debt with no way out. So, do you think it’s worth the money?
ReplyDeletePersonally I believe people fail to see everything college is about. College is obviously about getting a degree and doing well in all of your classes and being a great student. But the way companies hire these days is no longer solely based off a college degree of which only a handful of people had back then, making them the only qualified people to work certain jobs. At this point in our generation, there are many people with the knowledge and understanding of how to do many things because high school education has improved therefore making just getting perfect grades in college not the main thing anymore. All that to say and to bring it around, companies, churches, schools, and any other work related places are now basing more of their hiring decisions based on who was good at it in college AND who has some legitimate experience where they can hire and not have to train as much as the next guy who just had good grades. College is absolutely worth it in my opinion because it can be so much more than a classroom - it can be a place to train you on the things you actually need to know, get you experience in real situations - on and off campus - and therefore make you a much greater asset to a company than the other person who just knows how to answer questions perfectly out of a book.
ReplyDeleteThis was a very good topic to research because it applies to so many of us right now, but it also scares me because I don't know how I'm going to manage to pay for college. My parents always talk about how cheap college used to be and according to your chart, it's just going to keep increasing. I don't think there is a whole lot of opportunity costs to college because nothing else is going to get you as much success for the future including internships, jobs, and the overall education. Those who don't plan on going to college are saving so much money, but I feel as though it's necessary. College is one of those payments that will drown you because it's so hard to keep up with and pay off! Although colleges do give out scholarships and financial aid, that still may not be enough. I feel bad for the next generations to come because what is their price tag going to look like for college? I think the education outweighs the opportunity cost though because of the benefits.
ReplyDeleteThough college has a great marginal cost, the price is getting out of hand. With college getting more expensive, more kids are attending college. This makes colleges believe that it’s okay to raise their prices and new (lack of a better word) stupid fees , like the hundred dollars freshman fee or paying fifty dollars to apply to a school to just get rejected. With more and more kids getting a college degree, competing for jobs after college are getting harder. Creating competition and having to spend extra thousands of dollars to get extra degrees post college. The supply and demand for college is all very high, and the benefits of college is all worth it, but making it so you can’t afford it isn’t.
ReplyDeleteAlthough it is a little overwhelming and intimidating to think about the cost of a college education, the outcome far outweighs the fear of messy bank accounts. The amount of jobs available to high school graduates are very limited compared to the possibilities accompanied with a college degree. This also means that your income with a higher-end career will pay for your student fees on its own. Not only that, but there are many student loans, grants, and scholarships available to help students financially. We all work hard through school for a brighter future, and that is exactly what college has to offer.
ReplyDeleteI really love this topic! it's completely relatable to most of the people in econ right now. For a lot of people, the choice isn't between which college do I want to go to, its, do I want to go to college. I am going to a smaller UW school which is more like a private school in terms of having smaller class sizes and professor help. I have always know that after high school I would go to college. For me it always made sense, but I am from a 2 parent middle class family and we have always been financially secure. I am sure that for someone who came from a single parent family that is struggling with money, college might not be an ideal option.
ReplyDeleteThis was really interesting and definitely is going to be a rising concern among all to-be college students. It will be interesting to see at point the opportunity cost exceeds the benefits of receiving a higher education. At the rate that the cost is rising I suppose it would be possible to reach such a point. I know that I have made my decision based off of not only educational benefits but cost as well which is truly sad to think about.
ReplyDeleteThis is a very relateable topic for the seniors because many of us have to make this decision. One thing that could be put into the picture would be whether or not the kids can apply for scholarships. The cost of tuition at a college or university is very expensive from the start but there are many alternatives to help chip away at the price. The college or university could offer a scholarship or financial aid and there are also many other scholarships that students can apply for to lower the price. Although the price is very expensive from the start, there are a few different things that a student could do so they don't have to pay that much.
ReplyDeleteGood job T, and I agree with you 100%. It's also interesting when people go back to college for a better degree, or maybe even a different one. Some employers may pay you to go back to school, and some may not. Also, what if you decide to change your mind on your major you no longer like it or the job opportunities just aren't there anymore? That would take more money out of your pocket, or make you have higher student loans to pay off later. It's all dependent on what the future looks like out in the real world, and people need to consider that before deciding on what they want to do so they don't waste all of that money in college.
ReplyDeleteFor those who didn't go to college, good luck because most decent jobs are now starting to require that college degree. It's hard to raise a family on a minimum wage income even if it's going to be increasing soon or not.
This topic is completely relatable because even though so many from the senior class have secure plans after graduation, there are some who are iffy on where to attend due to the price of an education. It's a given that college tuition isn't cheap, but a great thing that is helpful is getting a grant, financial aid or scholarship which can decrease the amount you pay by a lot. I would love to have a secure bank account, but giving that large amount of money to attend a college that was personally selected helps you get there. The price for college is inelastic, no matter how high it gets, there will always be people willing to pay.
ReplyDeleteI totally agree with you, many students who are going to college really don't understand how much college costs. Along with that there is so much money involved and many students don't even get though their 4 years because the money and maybe they spend to much time doing other things than school and end up getting kicked out of classes which cost money. Everyone thinks college is the best thing and yeah i agree having a degree is huge but if you are a type of person who doesn't take time and effort into school is can be a huge waste of money and a bad decision.
ReplyDeleteThis is such a relatable post for many of us! I know personally, the expenses for college have been a big talk in my house and the pressure to get a lot of scholarships turned in is a must. My sister is in her Junior year of college and my parents, next year, will have to pay for not only my own education but my sisters. The real question is, is it all worth it? Yes, there is a 80% difference when it comes to getting a college education compared to the people who didn’t, yet only 27% of people who graduate find a job relating to their major. Only 27%. Because of the low employment rate, with all the people who are going to college to get a job might not even get one, let alone a secure one. These are some of the things people really need to consider when applying for college.
ReplyDeleteCitation: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/20/only-27-percent-of-college-grads-have-a-job-related-to-their-major/
Wow, fascinating topic and very relate-able. Being the youngest of three older brothers I get to see firsthand the benefits or both continuing education as well as joining the work force. Two of my siblings are in the work force and the other is off at school and both options have their benefits. I am one to continue education and have a firm understanding that if not determined throughout the whole process and completely sure of what I want to do; it can be a big waste of money and have the potential to lose valuable years in the workforce. There is a lot to consider on this topic and I think if you don’t know what you want find a job or go to school, but at least try something. You covered both sides of this topic very well, and weren't bias, Good Job!
ReplyDeleteThis is something that just about every high school student will be able to relate to, as most of us will be going to college some day. We are going to find out one way or another how much college costs, and we are either going to be prepared for it or not going to see all the consequences right away. This article really showed me what the negative effects of half-waying it through school can do. Four years may not seem like a long time, but if college is not spent doing the right things and spent doing all of the fun things, it will be a pain to pay back all the costs.
ReplyDeleteIts a very nice post, especially since its something that can generally relate to nearly everyone since a lot of people want to go to college after four years of High School. However theres other options than going to college that can help you with the future with whatever degree you earned, such as military personal or maybe the workforce such as an apprenticeship. Its interesting though on how much it can cost with all the different places you can go and things you can learn, and what you can make afterwards. Very nice and detailed job
ReplyDeleteThis was a good topic that is relevant to all the seniors in deciding whether they want to attend college or work full-time after high school and college is becoming far too expensive for anyone to be able to afford which is making a lot of people just get a full-time job because at the time making a lot of money sounds like a good idea compared to spending a lot of money to go to school. In the end, I believe that college is worth the cost in the long run because someone can make a lot of money from having a college degree.
ReplyDeleteThis was a very interesting piece of writing, especially considering that most of us in Econ are seniors. The cost of college is actually beginning to be ridiculous, it seems like it gets more expensive every year, sadly. Even though it’s true that some students completely give up financial security in the effort of pursuing a higher education, the fact that your income can rise 80% by having a college degree should reinforce that college is always the best path. Though student loans and other expenses can quickly add up, the benefit of going to college far outweighs the cost.
ReplyDeleteI've never thought about the benefits that would come from not going to college, but you do a really good job of presenting both sides! Even though later the benefits are much greater than the cost, it's ridiculous to think that people are having to try and pay more than they earn for this education. Do you think the government would ever consider setting a price ceiling to help the growing number of college students?
ReplyDeleteIt's easy to say that the long term is always more important than the short term, but when the short term cost is just this high, the decision is not so clear cut. I know this will be an issue close to me in the near future, as I prepare to leave for UW-Madison. It certainly won't be cheap, and I can only pray whatever job I get can support me and the debts such an education will surely incur.
ReplyDeleteThis was a great topic choice as it applies to every almost every student in econ this year! As your data provides, the cost of college is becoming rather ridiculous and is responsible for almost certain debt. Although the cost of college may send students spiraling into debt I'm certain attending college is the right choice. Attending a university broadens a student's job options exponentially; in this day and age a high school diploma is not enough. It was very interesting reading your article, nice job.
ReplyDeleteThis is extremely relevant to my life for basically this entire year. The costs to attend a university are so extreme I'm already dreading spending the rest of my life paying off student loans. I read an article similar to this earlier this year that said that the University of Wisconsin Madison has millions of dollars that they don't know what to do with yet they haven't decreased their tuition costs. That made me extremely angry because when you read articles like the one you wrote, it makes you question whether it's even worth it while they continue to increase tuition costs when they should be decreasing them.
ReplyDeleteI really liked reading your blog article. This definitely relates to everyone in the Senior class right now. One of the scariest things to think about when weighing the pros and cons of going to college is whether college will pay off in the long run. I recently was looking at a school that cost $36,000 a year. But who says the education there is so much better then the education at UW-Whitewater for $13,000? Also, some believe that they will end up making more money just going into a job after high school, because a lot of graduated college students are having difficulty finding a job with the economy today. Also, a lot of college grads are struggling since they may get a job, but it has nothing to do with the field they went into in college that cost them $50,000 or more. I do understand that college has to be expensive, but at some point when does college not become worth the money anymore? Nice job!
ReplyDeleteI tried to limit how much I thought about my own future when I read this post and focus more on how it pertains to economics. The cost of college tuition is ludicrous, and on that we can find common ground, but you did not cite clear reasons for the exponential increase over the years. While it seems reasonable that a jump in demand for college degrees may account for this, the post itself would benefit from correlating graphs of the increasing college-aged population.
ReplyDeleteEven though I'm only a junior, this was a really interesting post as I finally got to see how the supply and demand for college tuition works and that's kind of scary to think about all those costs and how colleges keep increasing the rate! It's a really difficult task of maintaining a full time job when the job competition is already difficult enough and going to school full time too only adds to the stress of college students. The graph really helped me see how income works between those average family incomes and the actual college tuition costs and that's a bit frightening!
ReplyDeleteGreat choice in topic because it grabs many students attention because of the impact this topic will soon have on us. I think it is safe to say many will agree it is a better choice to attend a college or university to better your education. Some choose to go straight to the workforce though which is also fine because in the end it is their life and their choice. At the time it will seem as if straight to the work force is a better choice but in the long run college will pay off.
ReplyDeleteGreat choice in topic and great connection!
I definitely agree that the marginal benefits of college outweigh the marginal costs, but by how much? Although the increasing demand causes colleges to need to expand, which costs money, it seems a bit unfair that colleges should cost such high amounts. Eventually, the demand for college will go down because costs are so high, and colleges will have to start to accept more people than they'd like to in order to pay off the expenses of the previous expansions. If the government could give subsidies to colleges, even small ones, the economy, in terms of college and individually, will remain healthy and prosperous.
ReplyDeleteThis was a great topic! I like that I can relate to it and it even got me thinking about my own future. It's no surprise that the cost of tuition just keeps going up, but I wonder if eventually it's going to reach a price that the majority of people can't afford. I wish it would be one of those situations where the colleges could have equilibrium's, however because there are always going to be students that will put themselves in debt to go to school I wonder if that could even be a possibility. I understand why the colleges are doing it, however I wonder if this will affect the amount of students going to college, and the amount of job openings because of that.
ReplyDeleteCollege prices are really getting out of hand. over the years the price for a good education has constantly been on the rise, and for some reason we started to see this as normal. This article showed me just how much college is costing us in recent years as a posed to in the late past. its no wonder why so many people just cross out the possibility of college in their futures simply because of the amount of money it will cost them. This also makes you wonder if what you are planning to do is really going to be a good life decision, their is no point in picking a career that will only start paying off when you'er 40
ReplyDeleteIt's really crazy to think of how much college prices raise every year! My cousin went to UW-Milwaukee some years ago and only paid $4,000 plus some a year! I would much rather pay what I can now for school and get a greater education to get a larger salary and then pay off things when I get this larger salary. I plan on getting my doctorate in psychology so hopefully I will have a big enough salary to pay off school and not be in debt for the rest of my life. College has a huge affect on the economy and if you don't go to college you ruin the economy. If you do go to college, you're still hurting the economy. This is almost a lose/lose situation to some people.
ReplyDeleteThe amount of college will always be going up, there is no question about it, however just like gas prices, or food prices the go up, and if you are really in need of it you will pay it. College is one of those things you have to do in order to really be able to do the thing you want. Once you get your college degree that is something that can never be taken away from you, so benefit from going to college and being able to get a good job out-weighs the price you have to pay in order to get that degree. Awesome topic, since we can all relate to it!
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Thank you for sharing such great information. can you help me in finding out more detail on schools in pune
ReplyDelete