Can You Put a Price on College Tuition?
By: Andie Martin
Tuition rates are one of the most influential factors when considering where to go to college. Most of us have never had to deal with numbers that added up so fast, making what once seemed like a relatively healthy amount of money, seem relatively insignificant. While we were once only forced to pay for things we wanted, it has become necessary for us to think about the money we spend now and how that might affect our ability to pay for what we will need in the future. Although it might seem nerve wracking to place such a great amount of money into our education, the rising cost of tuition will be worth the outcome for several reasons, some of which might be blind to us now.
It is beneficial to most people to sacrifice their money, or lack thereof, because most people believe that, “college graduates, on average, do still make considerably more than those with just a high school diploma” (Schoen). College degrees are supplied at many more places, and their prices are bound to increase as time goes on because they are in high demand. “Since 1971, annual college enrollment has more than doubled in the U.S. to 19.5 million,” allowing us to see that more people are willing to let go of their money for the sake of success. Universities are able to provide world renowned professors, hands-on classes, and real-world experiences in a student’s choice of career with the money from tuition and expenses.
Even so, there has been inflation in what several universities are charging for their attendance. From the graph below, you can see that costs have risen greatly since the year 1994, and are continually growing higher. Food, housing, and medical care, just to name a few, have begun increasing in cost, mostly because there have been advances within those areas themselves. Because of this, it does not seem to be fair that students and families are overpaying for their experience at an institution. To take away from this feeling of exorbitant amounts of money being spent, it is relieving to know that a small window of people actually pay their “sticker price.” 
If a university’s tuition is out of range for a student, “colleges also know that, whatever they charge, the government will help Americans to cover it” (Skibell). Subsidized loans are supplied by the government to cover what a family cannot afford. This makes it easier for families to support their children in attending whichever university they see fit for them, despite the price. From the chart below, you can see that undergraduate students are able to obtain a good chunk of money in loans from the government, all of which that will help them. There is an opportunity cost in choosing loans over paying something outright, meaning the debt will be especially greater, therefore not allowing you to buy other things and having to pay back your loans instead.
Tuition costs should not be the barrier that stands between a student’s education and what they could achieve at a different school if they had more money. By considering the positives in making a decision about where to continue one’s education, it is evident that there are ways to afford rising tuition costs and that they are necessary for success. Only you can determine, though, if all these factors will be beneficial for you as you head into your future.
Works Cited
Schoen, John. “Why Does a College Degree Cost So Much?” CNBC, http://www.cnbc.com/
2015/06/16/why-college-costs-are-so-high-and-rising.html.
Skibell, Arianna. “Rising Costs Brings New Focus on How Colleges Set Their Prices.” U.S. News, U.S. News and World Report, 1 Feb. 2016, http://www.usnews.com/news/
college-of-tomorrow/articles/2016-02-01/rising-costs-brings-new-focus-on-how-colleges
set-their-prices.
I feel like it’s interesting to see how, even as the price of tuition increases, people continue to take out loans, especially government subsidized loans. If the government continues to have to pay for tuition, how will that affect the supply of these loans -- will there be a ceiling placed on how many are offered? I agree that it’s important for everyone to get their college tuition, especially in this day and age, so I fully support the use of loans, it’s just interesting to see how it works out financially.
ReplyDelete
ReplyDeleteTuition prices truly have been significantly increasing over the past few decades. Many families, including my own, have to evaluate the trade offs of going to one college over the other. Some things that many students and families have to think about are the quality of education they are getting at a certain price, is it really worth it to spend so much money, and if they would be better off just not going to college at all and choosing a job such as welding or construction. However, pursuing an education is very important and should not be so expensive for students. It is strategically savvy for colleges to charge so much for tuition because they know many students will pay that bill despite how painful. Subsidized loans are helpful for paying for college, but the government could contribute even more. They could spend less money in other areas like military or outer space funding, and direct it towards education funding. All in all, everyone should be able to seek a higher education. Money, of all things, should be the last thing standing in our way.
I agree that when it comes to choosing what college to attend, price is a key factor. However, it is as I start the search for my own perfect university, I have learned some things. When you think about how expensive it must be to pay for world renowned professors, it makes a bit more sense why tuition prices continue to rise. So, to a certain extent, if you want a quality education the expenses may be worth it. On the opposite side though, private colleges are extremely expensive. Do they provide a better education? Maybe, but the extent of their tuition is causing people to turn away from choosing that school when they keep in mind the amount of debt they will be paying off throughout their future. The quantity of people going there is decreased as the demand to go to a school that is that expensive decreases. Both public and private universities must find a happy medium so that students can go to whatever school they please without having major concerns for debt. More payment plans need to be established, and people need to better understand what their money is going towards. It is not cheap to employ that many professors, especially those with the background and degrees that these teachers uphold. Therefore, I understand that schooling is expensive but it is necessary if you want a degree.
ReplyDeleteI never thought about how if a university tuition is too high for students the government will continue to pay for it. This gives colleges no incentives to make schooling more affordable to their students. It is interesting how the government will pay the extra so students can afford school but won’t help lower the costs. It is weird how prices keep rising over the decades. I would agree that there is a huge opportunity cost on deciding whether to invest in a student loan. Overall it was a very good and thought provoking piece.
ReplyDeleteI didn’t know that if the tuition is too expensive the government will help pay for it. If this were to happen a lot you would think that college would lower the cost. For me the prices definitely come into factor when looking at colleges and have affected my view on some colleges. I think and I’m sure everyone else does too, that the cost of tuition should decrease to become more affordable. But that most likely won’t happened and will continue to increase.
ReplyDeleteCollege tuition is defiantly a key factor in choosing the right school to go to. Although price is one of the main factors to consider when searching for the perfect university, I agree that it should not determine whether you go to a school or not. You should go to the school you believe is the best fit because in the end, it will benefit you the most. The hefty price of tuition causes some to shy away, but should not prevent anyone from choosing the college they love. The price may be quite large, but in order to receive a quality education, it is vital to have top professors and resources in order to do so. This is all intertwined with the tuition, which is sometimes hard for people to see. When looking at the price, it may seem like you will be in debt forever. However, after receiving a degree and finding a steady job, the benefit will far out weigh the cost, and hopefully pay it off. Although a cheaper price would be nice, it is good to think that paying such a large price will all be worth it in the long run. Another factor that stands out is whether the school is public or private. Many choose a public school due to the cheaper tuition, in which the demand increases. There is then private universities which tend to be a lot more. These schools have shown to decrease in demand. Overall, money is a major factor when it comes to choosing a college, and it is important for people to be educated in what they are paying for and how they can pay for it. When it comes to quality, it is only logical to think it would cost more. Overall, I think it is vital that people get more informed on how to pay for tuition effectively and what help the school and government can give them, in order for them to attend the college of their choice.
ReplyDeleteThere are ways to make college more affordable for students. For example, I know a lot of students who will opt to stay local for their first year or two of college. They live at home and save money as they get their general education classes out of the way, and transfer to better school to focus on their major. A lot of students though, aren't willing to sacrifice this year or two because they are too eager to leave home and/or to take advantage of the opportunities more expensive universities provide.
ReplyDeleteHowever, at the end of the day an accountant who graduated from a local college has the same degree as an accountant who graduated from a top-ranked university. We do need to consider our own interests, outside of cost, but we should still be very aware of it to avoid the burden of immense debt in the future.
Colleges offer a service and the supply and demand for that service determines its price. In my opinion, it is unfortunate that the government has stepped in to give out student loans. This has given colleges the ability to charge much for their tuition, because students have the ability to pay more sooner even though those loans have to be paid off eventually. The student loans given by the government have caused an increase in demand for college degrees, which has increased the price to astronomical rates.
ReplyDeleteThe one attribute most people tend to think of when they hear college is the insane amount of money you pay to get a degree. It didn’t even cross my mind, and I’m sure the same with others, that college tuition is rising in price because of demand, and that it’s an economic problem, not just a lifelong decision. There are ways to save on this money, by getting a job, going to a college in the area, applying for scholarships, or staying at home while attending college. Unfortunately, sometimes those money savers don’t align with you, so it’s different for everyone. College is the next step in life, and it’s unfortunate that such a tremendous price tag comes with it.
ReplyDelete