Jason Berg
Mr. Reuter
Economics
17 Nov 2014
17 Nov 2014
Increasing College Tuition
College tuition is on the rise. When seeing the prices some students think they won’t be able to afford it and should just get a job instead. In fact, there are several debates on whether or not the college degree is still worth it. Citizens are wondering why college tuition continues to increase at a rapid pace.
In the last 36 years, college tuition and fees have increased by 1,225 percent. By far it is the biggest increase in price than anything else. If somebody attended a four year public institution in 1974, the average cost was $1,563. Today, the average cost is $22,826 for in state students who get a reduced price meaning it could be even more if you chose to go out of state. Its clear to see the college is going to leave students with a big pile of debt even with scholarships. The average college student will finish college with about $25,550 in 2014 which was a 25 percent increase from 2008. 
When the college graduate enters the competitive workforce with already having $25,550 of debt it will take several years just to pay it off, because the average bachelors degree earns $51,206 per year. According to bloomberg,com it will take an average of ten years to pay off your college debt if you spend your money wisely. So why not just go work full time and make money instead of spending thousands of dollars? The reason is that citizens with a college diploma make about $17,500 more annually than those without a college degree. So when thinking long term, going to college will benefit you more than just entering the workforce. Also, when working with a college diploma there are more chances of working up in a company. So there are more opportunities when you have a college diploma which is also a benefit.
Many students wonder why college tuition is increasing at such a rapid rate. The answer is simple. Colleges are spending more and more money every year and increase the cost of tuition in order to help cover the cost of their spending. Another reason is that the state funding is decreasing so the schools are getting less money every year and need to make that lost money up by increasing tuition.
Overall, the high school students should plan on going to college. Even though the student will most likely have thousands of dollars of debt when finished. The benefits are worth the cost and the price is also going to increase in the near future.
This isn't surprising or unusual. It is actually a nice change to see businesses raising prices instead of relying on government handouts. We have to treat colleges like large businesses and think of them as giving us their version of layaway so we have time to pay them back for their service. There service has increased a large amount as well including everything from new lecture-halls to state of the art fitness and recreation centers. There are many more majors and minors than there used to be so there are more professors employed by colleges. So you might enter the workforce in debt but remember that it will be paid off soon and think about all the stuff you were offered by the college you are paying for. In this case the benefits far outweigh the cost
ReplyDeleteCollege debt is a huge problem today as kids sometimes choose a school to come out in the least amount of debt. Rising at the rates it has been, the price of college is through the roof and needs to go down. Kids just cant afford to go to school anymore and it reflects on the types of jobs that they get. The kids who come out of college in debt usually can get a job but they are in so much debt it takes very long to pay back. If you don't go to college, you cant get a good job or you don't get a job. This could partially be why unemployment rates are so high.
ReplyDeleteAttending college obviously is much better than entering the work force right away. The $17,500 increase in salary per year should make that a no brainer. Also, for those aspiring to become things such as doctors and lawyers, the return is even more despite the increase in initial debt. So despite the extremely high inflation rate of college tuition, it remains worthy of attending.
ReplyDeleteI find it crazy how much colleges are spending and I think it would be interesting to see one of their budgets to see how much they are actually profiting or where the money is going. Even with this in mind, I still do agree with you that college is worth the cost. But is there a line? I would say that college is a relatively inelastic good and if students want to attend, they are going to find ways to pay the rising tuition, but you’d think that at some point these increases would have to stop. Hopefully, in the near future, these increases slow down in order to allow more kids to find ways to get higher education.
ReplyDeleteThis is a classic example of risk and reward. Going to college has a risk because of the amount it will cost to attend. The reward is an averaged increased wage from a person without a degree. So in most peoples cases when it comes to college, the reward outweighs the risk. There are some exceptions though. Some people might have better luck and do better in life by starting at an entry level job and working hard to move up the ladder. Someone might also join the military and for them, it is quite possible to get a job right out of that.
ReplyDeleteI’ve always wanted to go to college, but the price of it never really hit me. The price never seemed that much to me until I started high school and considered colleges I might go to. So, it really surprised me when I learned how much it actually costs to attend college. It’s really not fair how much the prices have increased since my parents went to college, and it it really surprised me that college prices have increased more than medicare. But, with the scholarships and grants you can get can help decrease the overall price you have to pay. Overall, your post was well-written and insightful.
ReplyDeleteThis is a very relevant post, as a large percentage of us are going to pursue some sort of higher education, whether that be in a 2 year community college or a 4 year private/public university. When we label a college as our "dream school," we don't often think about the price, but this is a huge factor to consider. However, like you said, the benefits are worth the cost, as the salary we earn from receiving a bachelor's degree is way higher than a salary without education. But, there are financial aid opportunities and scholarships as well, so that is always an option. Overall, going to college inevitable, and the prices are as well, as we are willing to pay money for a great education.
ReplyDeleteYou did a good job of explaining how much the prices are increasing and also the risk that is involved with going to school. People sometimes forget that they are paying for an education and not parties and a social life. This can be a very expensive mistake and even if you graduate you still end up with debt. The benefit is that you have an advantage over people who haven't gone to college.
ReplyDeleteI find it shocking that college tuition remains so expensive in the US, and is only getting higher as time goes on. In many other countries, good colleges only cost a few hundred dollars to attend, often including book costs and room & board. To me, it is scary to know that in a few years I will be thousands of dollars in debt, just to be able to get a degree. The issue with not going to college is that, in most cases, it is very difficult to get a good job if you do not have a degree. So, high school students have to choose between having a good job and being in debt, or having a mediocre job and not being in debt.
ReplyDeleteCollege tuition is a big stress for high school students and parents alike. Although 2-year technical colleges are becoming more popular, it still seems like a traditional 4 year university or college is the most popular thing to do, even though it may seem daunting. Before reading your article, I didn’t realize how much tuition has actually increased, and even after adjusting for inflation, it still seems like colleges are needing more and more of our money. What I really would like to know, before spending money on college, is knowing where all the money I give them is going towards, and if it will affect me directly.
ReplyDeleteDear Jason. I really enjoyed this post, it was extremely relevant to the majority of the students in econ class. I, like many others, gawk at the cost of college. It seems unlikely that the school needs this much money to cover their spending but when thinking about it it actually makes sense. So many of us have been looking at schools and choosing based on a variety of different things. Some people want quality food and dorms, some people want quality technology. I believe the reason tuition keeps increasing is because student expectations have also increased and many colleges are forced to make improvements to combat the increase in expectations. For me, I want to go somewhere where I can get a really good education and while that sounds like something basic it can actually be very expensive. I would like to go into nursing. As many of us know the medical field is changing in many different areas for schools to keep their curriculums up to date they may need to invest in new teachers or new technology to accurately teach their students. Overall I understand the need to increase college tuition but I believe there should be some sort of price cap to keep it from going over an amount students can pay back in a reasonable amount of time
ReplyDeleteI think that the college degree is still worth it despite the high cost. Even if you chose to go to a low profile, thus cheaper school, a college degree will provide the skills necessary to enjoy your career not just make money. And, as Jason said the average college grad makes significantly more money than the the average worker without a college degree. It is true that there are several major professions that do not require a degree from a four year college but either way they require some training beyond high school that will still cost a significant amount of money. So basically, without a full scholarship, it is almost impossible to escape college without some amount of debt. So we should treat college debt like our national debt and just accept the fact that it's not going away anytime soon.
ReplyDeleteJason, this was magnificent. Your writing flowed like a nice stream. But getting back on topic, I agree with your point that even though the price for college looks intimidating, it will benefit you in the long run as you go along in your life. Most jobs are looking for some kind of college degree, and if you don't have one the chances of you getting that job are slim. A question I do have is why is college much more expensive now then before? It is not like they are completely changing what college is like. I could see a small increase, but not by 1225 percent. Overall, this was a great piece and I agree with you that college in the long run will help students out even with the debt that comes along with it.
ReplyDeleteThis post was very informative and was interesting to read. College tuition has sky rocketed in the last 20 years and it's amazing how much all of it costs. However I believe that the purpose of the high tuition is, because students have higher expectations. Such as state of the art workout facilities and quality of food and dorms are all factors of the tuition. Some of it as well is that colleges simply can charge the amount they want, because they know students will pay it.
ReplyDeleteJason, I didn't realize how much the cost of college tuition has been increasing! This is a very relevant post for many of us because it’s the time where we are trying to figure out what we are going to do with the rest of our lives. Although the cost of tuition is increasing, I think going to college is still worth it. Not only will you gain intelligence and have many great experiences, it will also set you up for success in the future. This makes the marginal benefit outweigh the marginal cost.
ReplyDeleteThis was a good topic. I was blown away by the percent increase that tuition has undergone. Price is definitely a factor I am looking at for my college selection and I have also wondered why it is so expensive. As you said, it is because schools are spending more and more money. I think this could be because society is encouraging schools to have the best stuff. The best students will want to go to the school that has the best stuff. This is common sense, I just wonder if there could be a way to lower the price so more people could go.
ReplyDeleteI know that this issue is very prevalent in today’s society and especially at this time in our lives. Personally, I also see the marginal benefits of attending college to outweigh the marginal costs, however, there are a lot of risks to procuring so much debt so early in life. For example, if your were unable to find a job in your intended field post-graduation, you might find yourself working in a field that would not even require that you got a college education in the first place. Conversely, even if you were able to find a job in the field you were looking for, there is no guarantee that you will be able to pay off that debt in the aforementioned time frame of ten years. There must be other constants in that research done such as the cost of living on that level of debt after college because most people, after finishing college need, for the first time in their life, a mortgage. I may not have one, but I know for a fact that something like a mortgage basically saps your income. I also am aware of the fact that very few college graduates know how to budget very well, so I think that I would add on another 5 years to that projected time to account for a few years of trial and error.
ReplyDeleteI'm no fan of college costs. In fact, it's personally discouraged me from applying to certain schools! A ~1200% is probably the most ridiculous realistic statistic I've ever heard; there's absolutely no way colleges should justify their inconceivable spending by burdening it on the wallets of students and their families, but the matter of the fact is, colleges are quickly shifting into the medium of a business which seeks the optimal profit per year. While I find that sickening, there's pretty much nothing to be done to fix this, so we're stuck with these prices for the foreseeable
ReplyDeleteWhile many gripe about the rise of tuition, there's actually no need to gripe. Sure many families are suffering from a decrease in income but there are other factors to consider when talking about college tuition. Since technology, healthcare and corporations of any nature are continually expanding, new opportunities/jobs and new skills are needed. To meet this demand, colleges are now offering a multitude of programs to meet the needs of these firms. Sure as students, we will pay the ultimate price of possible life-long debt but remember, the higher the degree the higher of income you'll be walking away with. And so while there's a large chance of inheriting a lifelong debt, the increase in demand for jobs in many fields will at the end of the day, make getting a college education beyond worth it.
ReplyDeleteCollege is very expensive and it is just going to continue to increase in price as the years increase. I feel like many students don’t want to go to college because of how expensive it is but I think all these spendings would be worth it in the long run. It would be interesting to see how much profit these colleges are really making and how much goes towards everything they have to pay for. They are going to have to stop increasing at some point because many people aren’t going to be able to afford college if it goes up much higher so it will be interesting to see when they start to slow down the price of college expenses and when they will stop increasing the tuition.
ReplyDeleteObviously I am not pleased with how much college tuition prices have soared since our parents went to college. Wouldn’t it be nice to have been born in that time period instead. I understand that colleges must spend money and need a way of getting that money back, but I don’t really see how they can justify the huge jump in tuition cost in just around twenty years. Yes, the world is changing, but charging someone around 50,000 a year to attend your college is ridiculous. How can you spend that much money on just one student and their college experience in one year. Looking at the graphs it really sunk in how unfortunate it is that we live in a time where it’s necessary to go to college to get a well paid job, but we’ll be in debt because of student loans well after we graduate college.
ReplyDeleteJason, I think you brought up some excellent points about the benefits of going to college versus directly entering the work force, because jobs that require large amounts of human capital often pay better. What I don't understand is what could have drastically changed in terms of spending for colleges between the time our parents were in college and now. It's just total bogus in my opinion and I think college have just raked in more and more profits.
ReplyDeleteIt’s crazy to think about how fast college tuition prices have risen over the past decade or so, and how much debt students have while finishing college. Most of the money that students have to pay the college go towards endlessly improving the technology and stadiums and gyms on the campus. While these are all good and fun, most of it is pointless. Students shouldn’t not have to pay thousands of dollars just so the school can rake in the profits and open up a new gym that college students barely have time to use in the first place.
ReplyDeleteCollege is so expensive now and it is shocking how much the price has increased. Most of us will be attending college next Fall, and I am looking forward to it, but I am not looking forward to all the money I am going to have to pay back after college. It is a huge set back for everyone, and it makes it a lot harder to purchase a decent house to raise a family in. Overall the price of college is out of control, and there has to be a solution to lower the costs.
ReplyDeleteThe cost of college is definitely an issue in the United States, as there is a huge gap in college graduates compared to other countries and a factor that could go into that is the fact that college is so expensive in the States. A 1225% increase is a ridiculous amount of change within a 36 year span and it’s only projected to increase. I know that this is very relevant to the seniors and juniors in econ now, so the stats you put in your essay are eye-opening and help make people aware of what they are spending.
ReplyDeleteAlthough it does seem ridiculous, The increasing costs do make make some sense. First, think of all of the subjects that they teach. These range from English to Quantum Physics. To be a professor for a college, you need some of the very hefty degrees like doctorates and those who get those expect some decent pay. Also, in order to keep up with standards and be efficient, they also need to keep up with current technology. Put together with the maintenance and the initial cost and you get another hefty amount. So overall, it does feel inflated, but not as much as people make it out to be.
ReplyDeleteCollege is really expensive and besides the stress of maintaining good grades there's also the piling up of bills from college loans. It makes people wonder why there was such a huge increase in students college tuition from the time our parents went to school and now. But going to college can give people way more opportunities in the work force than someone with out a college degree. Yet, the price of college is to outrageous and out of control.
ReplyDeleteI know several people who weren't able to go to college because of the cost. It's crazy to see how fast college tuition has gone up within the past few years. Most of us who will be attending college next year will not have too much extra spending money because most of us will be paying about eight thousand dollars a semester which may leave us will little money. Most of us may want to rent a house or apartment with some friends either sophomore year or junior year of college, but we may not be able to do that. It's surprising to me to see how fast college has gone up in past years and I believe that it'll keep rising and hopefully before it get's really bad we are out of college by then.
ReplyDeleteThe cost is a very large source for lower admission applications to college. Some people are more well off then other kids and those kids get to make more money because they started off with more money. Why is that fair? Well in truth it is not but that is the world we live in. Colleges have been charging more and more for tuition to have a surplus of money to delegate it to other projects they may want to start. Of course it all goes to the building maintenance but the amount of inflation associated with school as compared to construction work or other items is completely irregular and makes no sense what so ever.
ReplyDeleteI am sure that all of us had the same question about why this was happening, because the idea of having to pay off student loans and all that debt is scary! Those numbers are crazy that you found, that much percentage increase is insane. But I do agree that getting a college education is worth it, not only for the money, but for the education as well. Everyone's goal is to make money in life, and who wouldn't want to make more money if there was an opportunity to? And like you said, a college education is that opportunity! Great job Jason.
ReplyDeleteI find it interesting that the price of college has increased at such a high rate and I also believe that the cost of college will reach its limit soon considering the fact that many people cannot afford college and enter the workforce instead of college. As the number of people that pass up college due to cost increases the price will have to drop where it will reach an equilibrium because colleges want to have a price that will make them the most total revenue so by decreasing or holding the prices steady more people will pay to go to college thus resulting in a higher amount of revenue for the college. I predict that the cost of college will stop its dramatic increase in cost over the next ten years.
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