Analysis: The Michigan Education Trust (MET)

Every year it seems that the costs to go to college increase; whether that’s because the economy is in a decline or that these schools feel like they need more money each year. Over twenty-five years cost of loans and amount of loans needed have tripled, “In the early 1990s, fewer than half of students needed loans before they could walk across the stage to receive their diplomas. These loans averaged below $10,000 in constant dollars, which is about one-third of

Recently there has been a lot of debate about the importance of college education. Students are asking if it’s worth the debt to attend a four year university or community college. Some are thinking what are the benefits of a degree is in the workforce. With college tuition increasing and state fundings lowering, low income students are struggling to attain a higher education. College institutions should have a role to provide students higher education and equal opportunity to students to increase social mobility yet intergenerational reproduction of privilege has produced inequality in education.

The increasing cost of higher education in the United States has been a continuing topic for debate in recent decades. American society emphasizes the importance of education after high school, yet the cost of higher education and advanced degrees continually rises at a greater rate than inflation in the 1970’s. According to the Advisory Committee on Student Financial Assistance, cost factors prevent 48% of college-qualified high school graduates from pursuing further education (McKeon, 2004, p. 45). The current system requires the majority of students to accumulate extensive debt with the expectation that they gain rewarding post-graduate employment to repay their loans.

Most developed countries regard and guard their education systems since this platform is perceived to have the ability to hold a country together. This is especially so in the USA, where they aim at achieving 60% higher education attainment by 2025 (Cheny and Geoff 10). Such a milestone will not only affect the economy, but also the social aspect in life positively. However, rising costs of education always act as a major barrier for many students whose parents are low-income earners, thus making it unaffordable. This has resulted in a huge credit debt that not only threatens to cripple the financial sector, but also affects the borrowers’ credibility for a long time. As much as education affects the economy in a positive way, college loans may not be the ultimate solution for students to invest in their future. This is because supplementary aspects in the financial sector will be undesirably affected, a move that can render education inoperable since scarcer jobs will be created; consequently, graduates will not have an opening to apply their expertise and knowledge, and contribute to the economy.

Earning a college degree has long been considered—one of the major keys in achieving the American Dream. However, contrary to popular belief, that theory has been proven invalid. According to a recent study from the Federal Reserve Bank of St. Louis (FRBOSL), “Education does not help black and Hispanic college graduates protect their wealth the same way that it does for their white and Asian counterparts.”

Colleges are noticing a drop in students’ interest in a higher education, because it forces them to fall into poverty. Obtaining a higher education is a dream of many working class citizens, but the price to go to a choice college is not available economically. The majority of students use some type of student loan, they have become the norm for attending college (Johnston, Roten 24). College is becoming unaffordable to many lower class students. With tuition prices this high, students are backing out of school and looking for jobs that only require a high school diploma. Student loans should help people, but it is only hurting them because they feel like they can never repay it. Especially since student debt continues to rise. “Student loan debt rose by 328 percent from $241 million in 2003 to $1.08 trillion in 2013, according to the Federal Reserve Bank of New York” (Johnston, Roten 25).

College graduates can pull in higher paying employers, therefore the states can benefit by earning money off of these employers. Some children’s families cannot manage to help pay for the fees, housing, meals, books, supplies, and personal/transportation expenses, even with the pell grants and other scholarships being offered to them. Sixty percent of college students stress about not having enough money to pay for school, the other percentage are worried about not having enough to pay their monthly expenses on top of school (“College”). This in return may put a burden on society from becoming booming with well advanced and bold civilians due to the lack of interaction with college level wisdom. Student’s should all have a chance at further promoting their lives to flourish at what they believe they want to become, without having to deal with the later emotional struggles of money. Although graduates may pull in higher paying employers, the

Only four students went straight to the workforce, when a century ago, this was not the case. With students now consistently going straight to college after high school, state universities should be free to state residents since we have public high schools. In Kalamazoo, Michigan, students who attend high school in Kalamazoo starting in ninth grade, can have from sixty-five to one hundred percent of their tuition covered (Teicher). This is known as “The Promise.” The Promise guarantees any student from Kalamazoo a scholarship that pays either a majority or all of their tuition (Teicher). This scholarship can be used for any state school, fifteen private schools, and other state schools around the United States that are less than the highest tuition in Michigan (Teicher). Since The Promise’s first wave of scholarships, there has been definite improvements in college attendance. For black students, there has been a three percent rise in college attendance and overall forty-eight percent of scholarship recipients graduate college (Teicher). While this has shown an impact, there certainly are other factors that lead to the fifty-two percent that do not graduate, such as not being taught time management, academic skills, or how to take advantage of their sources (Teicher). Despite this fallback, “The Promise” has definitely started an era of higher college graduation rates and those who lack financial support a method of

Deborah Caldwell shares her emotional experiences with the college education system in her essay “My Son Was Accepted to a College He Can’t Afford. Now What?” that I hope will not reflect my own. I am a High School Senior who is planning to attend college in the upcoming term, going through the selection process just as Caldwell describes. Just like my mother, She takes pride in the achievements of her children and is proud they are accepted to prestigious schools for all their hard work. I see my family through her experiences as the year unfolds and I apply for federal aid. Just like many other middle class families, we are neither rich enough to afford university tuition without aid nor poor enough to qualify for government assistance programs.

Financial barriers for higher education has climbed over the last ten years. Today, over 40 million Americans have student loans. Of these 40 million, most individuals are struggling to maintain payments on the loans (Hillary for America, 2016). Since 2004, the tuition for in-state colleges and universities has risen by about 42 percent and with the recent Great Recession, states have continued to decrease spending on higher education at a rapid rate (Hillary for America, 2016). It is estimated that states are only contributing around $1,805 per student, which is estimated to be 20 percent less than what was contributed only seven years’ prior. The federal government in

Student loans disproportionately affects individuals from households with fewer financial resources, furthering economic inequality between different groups. Although the price of college has sharply increased, the average earnings for many people remain the same, which Hillman, a professor at Univ. of Wisconsin notes to be the one of the major reasons as to why student debt has risen in the recent years, data from the US Census Bureau shows that median family incomes have fallen each year since 2005. Due to this, there is a huge dependence on borrowing to cover the high costs of college since most can’t rely on such work income or savings. Existing structural inequalities in the labor market and great racial disparities in wealth distribution has led to minority students especially Blacks and Latinos needing more financial assistance to cover college. A recent Center for American Progress analysis on the impact of student debt on communities of

The U.S. government has created a new strategy to make colleges more affordable for low income students. Federal student aid’s primary goal is to help as many students attend college as possible. Financial aid and Pell Grants help low income students who meet certain academic criteria cover the costs of tuition. Low income students are getting a chance to attend college and increase graduation rates from four-year institutions to help close the poverty gap. Colleges and universities should make low income high school students aware of programs that will help them enroll and afford their education. Schools teach low income students that college is a key to their financial independence and a better life. High schools teach Seniors that in order to improve your social standing, employment options and salary expectations, a college education is often necessary. Financial aid is central to the successful enrollment and retention of low-income students. The majority of these students (90 percent) getting financial assistance from government. By maximizing Pell grant award amounts for low-income students, reforming the student loan program, and eliminating bank subsidies, colleges and universities can be affordable.

Michigan is a bottom 10 state in education performance, according to one key recent measure.

Presently, the availability of educational opportunities at the college and university level is a critical state and personal interest given the needs of the state for a well-educated workforce which has never been greater. Too many, the focal point of attending college is receiving a high paying job in the future. Unfortunately, in most states, tuition is on the rise and students who come from low-income families find themselves struggling to fund their education. According to legislatures, “The cost of college in New Jersey, as in the nation, continues to grow faster than the rate of inflation.” (State of New Jersey 1). In the national financial aid policy resources that are typically given to the neediest families are shifting towards

The cost of tuition for higher education is quickly rising. Over half of college freshmen show some concern with how to pay for college. This is the highest this number has been since 1971 (Marill and O’Leary 64-66, 93). The amount of college graduate debt has been rapidly increasing also. With limited jobs available because of the high unemployment rate, college graduates find themselves staying in debt even longer. Although grants and financial aid are available to students, students still struggle to pay for their college tuition. Higher education costs are prohibitively expensive because the state’s revenue is low, the unemployment rate is high, and graduates cannot pay off their student loans.