Rising Cost of Education
College is too expensive!
Not to long ago I heard yet another sad story of someone dropping out of college - not for academic reasons - but because of the egregious cost of to attend school. Out of state expected cost of attendance at the University of Arizona for the 2013-2014 year is $41,910. The average published cost of attendance for a public university in the U.S 2012-2013 year was $30,911 while for the average non-profit private university it was 39,518. I am sure those number averages are even higher in the 2013-2014 school year.
-Throughout life will invest in many things. Some people will invest in stocks, others in the property market and almost all of us put some investment into other people. However, the most important investment someone can make in their lifetime is in themselves. Higher level education is such an investment. It is agreed that going to college increases one's potential earning power and therefore opens doors in the future that otherwise may stay closed. The problem now is that not everyone is getting a return on that investment. Today, in some of the bigger metropolitan areas, it not uncommon to find someone who is homeless or simply unemployed who is the owner of a degree from an accredited university. The supply of college graduates seems to have surpassed the demand businesses have of them. As a result some people are burdened with growing student loans and no means to pay them back.
Growing student loans are not only bad for the borrower it also has a negative affect on the economy.
Students who finish their education with excessive loans find it difficult to take out other large loans. Banks are unwilling to risk mortgage loans, car loans and loans needed to start a business venture on someone who has no prior history of being able to handle such a heavy load and who probably would not be making enough money in a starter job position. Stagnation in the flow of credit in the economy leads to decrease in growth and may stifle the ingenuity of future entrepreneurs.
It is important that people realize that higher education is not what defines you as a person. There are many successful people who did not finish college or never even attended a university. Conversely, on the other end of the spectrum there are those people aforementioned that have degrees but no job title to attach to their name. College is simply a possible means to an end. If what you want to do requires you to have a college degree then by all means, go for it. If you are unsure as to what path you wish to choose I believe time spent in volunteering or taking an apprenticeship in the area is a good place to start. A first hand experience may give you better insight to the answer than a distant view from the classroom. In addition it is a much cheaper option too.
Society functions by different cogs and parts that work to together to make the whole system go.
Without the doctor we would have no healthcare and without the electrician we may live in darkness. Without lawyers are justice system may be diminished and without plumbers are sewage systems would go down the drain. Not everyone is suited for college. The notion that those who do not attend college have no future is untrue. What determines your future is the drive and ingenuity to be the best at what you do.
However it is impossible to ignore the rising cost of education and the research that suggests “Over this decade, employment in jobs requiring education beyond a high school diploma will grow more rapidly than employment in jobs that do not". "Of the 30 fastest growing occupations, more than half require postsecondary education. With the average earnings of college graduates at a level that is twice as high as that of workers with only a high school diploma, higher education is now the clearest pathway into the middle class.”
(www.businessadministrationinformation.com)
What is the current administration's plan to address this growing problem?
Obama’s plan includes doubling the number of those who receive federal Pell Grants. That number already has grown by 50%, according to the Department of Education website, rising from 6 million to 9 million Pell Grant recipients.
Obama also plans to keep student interest rates low, provide aid to students in managing student debt and extend tax credits.
Obama also has proposed a federal program to reward states for lowering tuition costs.
Additionally, according to the White House website, the Obama Administration plans to strengthen the community college system and improve the “transparency and accountability” of college costs. One measure calls for a “financial aid shopping sheet” that would allow potential students to easily compare the terms of various financial aid loans.
The cost of higher education in the United States is far more expensive than that of other developed countries. In order to continue to produce the brightest minds it is imperative that money does not becoming too high a barrier for Americans to overcome. A better education system will lead to more contributing members to the economy and is the key to future breakthroughs in research that will mean advancements in society.
Works Cited
-Hooks, Julian, http://www.businessadministrationinformation.com/news/president-obama-to-pitch-plan-to-reduce-education-costs,
-Watson, Bruce, http://www.dailyfinance.com/on/college-costs-tuition-rising-student-debt-infographic/, March 16 2013, August 17, 2013
Not to long ago I heard yet another sad story of someone dropping out of college - not for academic reasons - but because of the egregious cost of to attend school. Out of state expected cost of attendance at the University of Arizona for the 2013-2014 year is $41,910. The average published cost of attendance for a public university in the U.S 2012-2013 year was $30,911 while for the average non-profit private university it was 39,518. I am sure those number averages are even higher in the 2013-2014 school year.
-Throughout life will invest in many things. Some people will invest in stocks, others in the property market and almost all of us put some investment into other people. However, the most important investment someone can make in their lifetime is in themselves. Higher level education is such an investment. It is agreed that going to college increases one's potential earning power and therefore opens doors in the future that otherwise may stay closed. The problem now is that not everyone is getting a return on that investment. Today, in some of the bigger metropolitan areas, it not uncommon to find someone who is homeless or simply unemployed who is the owner of a degree from an accredited university. The supply of college graduates seems to have surpassed the demand businesses have of them. As a result some people are burdened with growing student loans and no means to pay them back.
Growing student loans are not only bad for the borrower it also has a negative affect on the economy.
Students who finish their education with excessive loans find it difficult to take out other large loans. Banks are unwilling to risk mortgage loans, car loans and loans needed to start a business venture on someone who has no prior history of being able to handle such a heavy load and who probably would not be making enough money in a starter job position. Stagnation in the flow of credit in the economy leads to decrease in growth and may stifle the ingenuity of future entrepreneurs.
It is important that people realize that higher education is not what defines you as a person. There are many successful people who did not finish college or never even attended a university. Conversely, on the other end of the spectrum there are those people aforementioned that have degrees but no job title to attach to their name. College is simply a possible means to an end. If what you want to do requires you to have a college degree then by all means, go for it. If you are unsure as to what path you wish to choose I believe time spent in volunteering or taking an apprenticeship in the area is a good place to start. A first hand experience may give you better insight to the answer than a distant view from the classroom. In addition it is a much cheaper option too.
Society functions by different cogs and parts that work to together to make the whole system go.
Without the doctor we would have no healthcare and without the electrician we may live in darkness. Without lawyers are justice system may be diminished and without plumbers are sewage systems would go down the drain. Not everyone is suited for college. The notion that those who do not attend college have no future is untrue. What determines your future is the drive and ingenuity to be the best at what you do.
However it is impossible to ignore the rising cost of education and the research that suggests “Over this decade, employment in jobs requiring education beyond a high school diploma will grow more rapidly than employment in jobs that do not". "Of the 30 fastest growing occupations, more than half require postsecondary education. With the average earnings of college graduates at a level that is twice as high as that of workers with only a high school diploma, higher education is now the clearest pathway into the middle class.”
(www.businessadministrationinformation.com)
What is the current administration's plan to address this growing problem?
Obama’s plan includes doubling the number of those who receive federal Pell Grants. That number already has grown by 50%, according to the Department of Education website, rising from 6 million to 9 million Pell Grant recipients.
Obama also plans to keep student interest rates low, provide aid to students in managing student debt and extend tax credits.
Obama also has proposed a federal program to reward states for lowering tuition costs.
Additionally, according to the White House website, the Obama Administration plans to strengthen the community college system and improve the “transparency and accountability” of college costs. One measure calls for a “financial aid shopping sheet” that would allow potential students to easily compare the terms of various financial aid loans.
The cost of higher education in the United States is far more expensive than that of other developed countries. In order to continue to produce the brightest minds it is imperative that money does not becoming too high a barrier for Americans to overcome. A better education system will lead to more contributing members to the economy and is the key to future breakthroughs in research that will mean advancements in society.
Works Cited
-Hooks, Julian, http://www.businessadministrationinformation.com/news/president-obama-to-pitch-plan-to-reduce-education-costs,
-Watson, Bruce, http://www.dailyfinance.com/on/college-costs-tuition-rising-student-debt-infographic/, March 16 2013, August 17, 2013
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