College Student Debt

It has always been said in more recent times that college tuition metaphorically costs an arm and a leg, but never specifically how much it is on average; “By 2011 the average student debt was $23,300.” (Kiener). The statistic gives an idea on how much of an impact debt leaves on an average college student, graduating or not, and why it is always brought up whenever anyone discusses education beyond high school. With the “sticker prices” of an average public university appearing increasingly intimidating as each school year passes, anyone that isn’t a part of the upper economic class can pay for education so easily. Education is a heavy investment, and the pressure to pay for such is high as it gives more job opportunities and a career to
It continued on, which lead to the passing of the Higher Education Act of 1965 which helped “…provide financial aid to students pursuing higher education; college enrollment climbs to 5.6 million” (Billitteri). Over time however, economies changed for better and then for worse as cuts in state funding and budget became an issue, leaving an effect in financial aid (Billitteri). Kenneth C. Gray from the article Value of Education stated, “…colleges “attribute this to the fact that there’s less money for financial aid, and therefore students are seeking less-expensive alternatives,”…I suspect people are starting to sense that maybe they should go” to a community college to gain an industry credential “and get a four-year degree later.” (Billitteri). Claims of less money and financial aid is driving people to look elsewhere for an opportunity at shaping their careers, which makes competition more difficult for the students to earn financial aid and narrows students’ finding an affordable college deal. Not only is lack of financial aid an issue, but distress from the competition of financial aid leads to dropping out of college with a negative outcome. “…Some students receive large financial aid refunds and then drop out of college, both putting themselves at risk of not being able to pay back their
The beginning of Pell grants themselves occurred “In 1973, the government's establishment of the Pell Grant program provided college aid for low-income students; unlike loans, those grants did not have to be repaid.” (value of a college degree) It gave opportunities that an average low-income student couldn’t achieve on their own without relying on loans, and with this alternative there was little to worry about within their payment process. Over time however, it couldn’t keep up with the rise of tuition pricing, and as a result began to cover for less. “In the program’s first year the maximum Pell Grant was $452; by 1990 it had reached 2,300 and 5,550 in 2012. From covering nearly all of a year’s tuition at a typical two-year public university, a Pell Grant now covers only about 36 percent”( Kiener). The decrease in amount given on Pell grants is a negative sign as a multitude of students still rely on it to get by on their education funding, to specifically put in numbers,“…nearly 60 million students have received a Pell Grant, with more than 9 million currently receiving it”(pell). With that amount relying on grants, it is a frightening thought that the decreasing amount put into funding a student’s education is covering less and less as time goes. The demands for grants are as high as tuition prices themselves, yet the supply of what grants have to offer is too low to