College Cost Benefit Analysis
In the past decades, the cost of higher education has been increasing. Not only the cost of tuition increased, but the number of college applicants has increased as well. More individuals began to continue their high school education due to the fact that the job market has become more competitive. Employers are seeking skilled workers that are able to prove that they are experts in their field. However, when you analyze the cost of attending a university, is college education actually worth pursuing? The issue has two perspectives, and attending college has both: advantages and disadvantages. Since the cost of the tuition has increased, students take out more loans. According to the America’s Debt Help Organization, “debt among students has
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reached astonishing levels in recent years” (Student Loan Debt) (Cecilia Barr). The problem is that the median wage remained constant which means that the price of education is going up, but the wages are not. The cost of higher education has increased tremendously over the course of the past three decades while the median average income remains constant.
To begin with, majority of college students have student loans after graduating from a university with a diploma. The college tuition has increased over the past years, and although majority of students work while they are attending college, they are not able to pay the entire tuition. Consequently, they end up borrowing the money in the form of a loan, including both: private and government loans. Moreover, grants and scholarships are not increasing as tuition increases, and are becoming limited. U.S. Government Accountability Office reports that the “student grant aid has not kept pace with tuition levels, so students and their families are relying more heavily on loans and personal finances” (Higher Education). Loan puts a student in a risk of being in debt in the future because acquiring a job after graduating from a college institution is not guaranteed. Loans need to be paid off regardless if a job is obtained or not. According to Controversial Issues, “In 2011, 50% of US college graduates under 25 years old had no job or only a part-time job” (Median Income). Higher education increases the chances of finding a job because of the new skills that are acquired by the student, but it will not guarantee a future job position. Finally, attending college involves the idea of opportunity cost. While students spend their time at school, they cannot be working full time and earn money. This also causes students to loan money, and take a risk of being in debt when they graduate. Because of tuition cost going up, the students and their families may not be able to pay the entire amount of money for school instantly, so they decide to take out loans. All in all, the increase in tuition rate causes young people to incur debt.
While the cost of the higher education has been going up, the median income has remained relatively constant throughout the past several decades.
There are several factors that influence the college costs. For example, one of the factors is the type of the institution, whether it is a public or a private university. In addition, inflation has to be taken under consideration when comparing the college expenses vs. the wages after earning a degree to observe the increase in the rate of college tuition clearly. According to one source, in “1971 the tuition for a public 4-year college was $428 ($2,456 adjusted for inflation) per year. By 2012 tuition had risen to $8,646 ($8,816 adjusted for inflation) per year, a 1,920% (259% for inflation-adjusted numbers) increase” (Median Income). During a thirty year period, the college tuition has quadrupled. The largest increase in tuition rates can be observed between the years 2008 and 2013. Although the college cost has risen, the medium income for a men or women with a bachelor degree has stayed relatively constant. One source says that “the median income in 1971 for men was $6,903 ($34,898 adjusted for inflation) and for women was $2,408 ($12,174 adjusted for inflation). In 2012, the median income for men was $33,904 and $21,520 for women” (Median Income). While the medium income has both slightly increased, the change was not significant to offset the cost of tuition. Furthermore, another source says that “between 2002–03 and 2012–13, prices for undergraduate tuition, room, and board at public institutions rose 39 percent, and prices at private nonprofit institutions rose 27 percent, after adjustment for inflation” (Fast Facts: National Center for Education Statistics). The cost of higher education increased from about thirty to forty percent and the students now need to borrow money, take out loans, as well as work at a minimum wage job while in college. The loans put the students at risk of incurring debt causing students
to work for a minimum wage to avoid the loans; they do not earn a significant amount of money due to the fact that the minimum wage has stayed relatively constant as well. After students get their diploma, their income will be similar to what it has been for individuals that graduated in the past and paid lower prices for the same education. In conclusion, the tuition rates have dramatically increased over the past few decades, while the median income has remained constant, especially for men. For women, the income has increased over the years, but that pertains to the issue of inequality. Women’s incomes used to be lower in the past, but now they have been rising due to the feminist movement. The underlying argument is that people pay higher rates for the education than people paid years ago, and since income does not increase, students will end up paying more, yet not making more than their earlier counterparts. Similarly, if college tuition goes up, scholarships and grants become limited, and this is another reason why students take out loans.
reached astonishing levels in recent years” (Student Loan Debt) (Cecilia Barr). The problem is that the median wage remained constant which means that the price of education is going up, but the wages are not. The cost of higher education has increased tremendously over the course of the past three decades while the median average income remains constant.
To begin with, majority of college students have student loans after graduating from a university with a diploma. The college tuition has increased over the past years, and although majority of students work while they are attending college, they are not able to pay the entire tuition. Consequently, they end up borrowing the money in the form of a loan, including both: private and government loans. Moreover, grants and scholarships are not increasing as tuition increases, and are becoming limited. U.S. Government Accountability Office reports that the “student grant aid has not kept pace with tuition levels, so students and their families are relying more heavily on loans and personal finances” (Higher Education). Loan puts a student in a risk of being in debt in the future because acquiring a job after graduating from a college institution is not guaranteed. Loans need to be paid off regardless if a job is obtained or not. According to Controversial Issues, “In 2011, 50% of US college graduates under 25 years old had no job or only a part-time job” (Median Income). Higher education increases the chances of finding a job because of the new skills that are acquired by the student, but it will not guarantee a future job position. Finally, attending college involves the idea of opportunity cost. While students spend their time at school, they cannot be working full time and earn money. This also causes students to loan money, and take a risk of being in debt when they graduate. Because of tuition cost going up, the students and their families may not be able to pay the entire amount of money for school instantly, so they decide to take out loans. All in all, the increase in tuition rate causes young people to incur debt.
While the cost of the higher education has been going up, the median income has remained relatively constant throughout the past several decades.
There are several factors that influence the college costs. For example, one of the factors is the type of the institution, whether it is a public or a private university. In addition, inflation has to be taken under consideration when comparing the college expenses vs. the wages after earning a degree to observe the increase in the rate of college tuition clearly. According to one source, in “1971 the tuition for a public 4-year college was $428 ($2,456 adjusted for inflation) per year. By 2012 tuition had risen to $8,646 ($8,816 adjusted for inflation) per year, a 1,920% (259% for inflation-adjusted numbers) increase” (Median Income). During a thirty year period, the college tuition has quadrupled. The largest increase in tuition rates can be observed between the years 2008 and 2013. Although the college cost has risen, the medium income for a men or women with a bachelor degree has stayed relatively constant. One source says that “the median income in 1971 for men was $6,903 ($34,898 adjusted for inflation) and for women was $2,408 ($12,174 adjusted for inflation). In 2012, the median income for men was $33,904 and $21,520 for women” (Median Income). While the medium income has both slightly increased, the change was not significant to offset the cost of tuition. Furthermore, another source says that “between 2002–03 and 2012–13, prices for undergraduate tuition, room, and board at public institutions rose 39 percent, and prices at private nonprofit institutions rose 27 percent, after adjustment for inflation” (Fast Facts: National Center for Education Statistics). The cost of higher education increased from about thirty to forty percent and the students now need to borrow money, take out loans, as well as work at a minimum wage job while in college. The loans put the students at risk of incurring debt causing students
to work for a minimum wage to avoid the loans; they do not earn a significant amount of money due to the fact that the minimum wage has stayed relatively constant as well. After students get their diploma, their income will be similar to what it has been for individuals that graduated in the past and paid lower prices for the same education. In conclusion, the tuition rates have dramatically increased over the past few decades, while the median income has remained constant, especially for men. For women, the income has increased over the years, but that pertains to the issue of inequality. Women’s incomes used to be lower in the past, but now they have been rising due to the feminist movement. The underlying argument is that people pay higher rates for the education than people paid years ago, and since income does not increase, students will end up paying more, yet not making more than their earlier counterparts. Similarly, if college tuition goes up, scholarships and grants become limited, and this is another reason why students take out loans.