The Cost of College

Written by: Allison Quartaroli

The Cost of College

As a class full of soon to be graduating juniors and seniors most of us are looking ahead to the next chapter of our lives whether it is going straight into the workforce, the military, or most likely to college. By now most of us have applied and received numerous letters in the mail deciding our fate for the next four years including: where we will live, our friends, and not to mention what we will be doing as a career for the rest of our lives. However the stress doesn’t stop after the letters arrive on your doorstep-- that’s the easy part— because now you actually have to face the daunting cost of your education currently looming over your head bringing FAFSA, and scholarship essay after scholarship essay because any amount of financial aid even if it is only a few hundred dollars will make at least a small dent in the debt you will owe by the end of your college career.

With the threat of future debts looming, many high school students have a choice to make as they consider the trade offs of attending college. Many students begin to question the importance of a attaining college education and thus have to analyze the costs and benefits of attending college where they have to compare it to what will be sacrificed in this case a college degree in order to enter the workforce and begin immediately earning an income; as well as what will be gained as a result of this specific action: going to college and obtaining the degree which will allow them to make more money. Although the opportunity cost of not going to college would allow for people to immediately go into the workforce after graduation, and earning an income seems appealing to many students, it does not outweigh the benefits of the attending a college or university. Attending college provides students with opportunities that are much grated and widespread than those who have not gone on to a higher education; despite its immense cost.

It is becoming increasingly more important for adults to attain a higher degree of education in order to have a higher paying job, and also be more successful in the workforce. Unemployment for those with only a high school diploma is twice as high as for those who have attained a degree from a college or university. Not only that, research also shows that “the growth in employment in the past two decades has been entirely due to the increase in college- educated workers.” With increased education and experience, college graduates increase their earning potential with “individuals who have their bachelor’s degree earning on average 84% more, over a lifetime than those with only a high school diploma”(Bittar, Catherine) Many people recognize that although the high cost the benefits of attending college are greater.

Even though obtaining a college degree is an important factor in increasing earning potential the cost of college unfortunately continues to rise making education too costly for some. On average at the end of four years “students will owe $26, 000 in student loans” (Learning English) However many students like Joshua Jordan, from the article “Economists Say College Costs Hurt Economy” by Learning English, who earned a doctoral degree in physical therapy is now in debt for $210,000. Although Joshua has eight times the loan debt of an average college student, large amounts of debt are the cost of obtaining a degree in a higher paying field like physical therapy. However, it wasn’t always this way, but in the last 30 years “college tuition has been increasing at twice the rate of inflation” (Learning English) partly because decreasing financial support from state governments forces them to charge higher tuition.

According to the graph as well as recent statistics the price of college has increased in absolute dollars by 1120% since 1978, which is more than any other good, or service in the U.S. economy. For example, the cost of food has increased by just 244 percent and healthcare by 601 percent in the same period. (Tuition and Fees: Paul Kisers Blog)

Many economists believe that these high costs end up hurting the economy because in order to receive any higher paying job you have to have some sort of higher education to even be considered for the position.  This means that more and more people are applying to college however do to the increased demand for college combined with the scarcity of universities and a lack of government funding unfortunately the education goes to the highest bidder. It is sad that we have to be in bidding wars for our education the winner being the person who can afford it, and “experts worry that the high cost of education makes it less likely that good students from poorer families will attend college” thus diminishing our equal rights as students to receive an education. Even then many people still cannot afford to attend college on their own without some sort of assistance whether it is student loans, scholarships, or grants.

Due to the fact that most students come out of college owing a substantial amount of money it creates an endless cycle that is hard to escape because in order to get a good stable job so you can pay your bills and buy goods to help the economy you have to go to college first. However because of the high cost many graduates are worried about paying thousands and thousands of dollars in student loan debts delay getting married and having children. Not only that but newly graduated students cannot and will not be able to contribute to the economy meaning that many will move back in with their parents, they won’t buy cars, or other goods.

Many of you might be thinking “I’m not going to college so this doesn’t affect me,” and while the cost of college only seems important to those in college, thinking about attending, or is a part of a family who has other members attending. Unfortunately the high cost of college is a negative externality to those not planning on going to college because according to Georgetown University labor economist Anthony Carnevale “the current system cuts economic growth for the whole country.” So even though you might not be directly affected by the high prices of college it does affect you adversely in some way. And these effects are not small by any means in fact the cost has a substantial effect on economic growth. “If we had kept up with demand for post-secondary talent, economists estimate that we would be at about $500 billion or more per annum in gross domestic product.  That is, people would have more money to spend” (Anthony Carnevale).

Something needs to be done about the high price of college, because it not only affects degree-seeking citizens of society, but everyone else in the society as well. Although there are many plans in place such as FAFSA, scholarships, and grants that will ultimately help lower the cost; however I think more needs to be done about lowering the cost of education; universities should not be in the business of making a profit off their students. However with that said despite the immense cost of education ultimately in the long run a college education is extremely beneficial not only for yourself but for the society as a whole.

Sources:  

Bittar, Catherine. "The Economics of Higher Education: Why College Is a Worthwhile Investment." The Huffington Post. TheHuffingtonPost.com. Web. 10 Feb. 2015. <http://www.huffingtonpost.com/catherine-bittar/college-investment_b_1989876.html>.

"Economists Say College Costs Hurt Economy." VOA. Web. 10 Feb. 2015. <http://learningenglish.voanews.com/content/college-costs-hurt-economy/1840989.html>.

"Importance of College Education." Articles Advice. Web. 10 Feb. 2015. <http://www.collegeview.com/articles/article/importance-of-college-education>.

"Tag Archives: Tuition and Fees." Paul Kisers Blog. Web. 10 Feb. 2015. <https://paulkiser.wordpress.com/tag/tuition-and-fees/>.

"What to Do about the Cost of College - Admit This!" Admit This. 14 June 2012. Web. 10 Feb. 2015. <http://www.collegeconfidential.com/admit/what-to-do-about-the-cost-of-college/>