College Bubble

1380 Words Oct 14th, 2012 6 Pages
Amanda Perras
Instructor David Long
Eng 090-404
29 September, 2012
The College Bubble:
The Combination Of Economic Downturn And Raising Of Tuition Rates Since we were young, we 've been told that with hard work and determination in high school we would one day make it to college. Once there, if we succeeded with graduating, we 'd get a degree which would lead to a well paying career that would allow us to invest in our future. With college debt now leading in the nation 's debt with the growing amount of 830 million dollars, we are stuck asking. Why is the college-loan system failing? The College Bubble was a term used to explain the effect of the nation 's current financial crisis and college tuition constantly on the rise.
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The cost of college books has tripled in the last 10 years, costing an average of $200 dollars (NIA). College 's will publish their own books, require students to buy them, then update or revise them every year to make the book obsolete causing students to have to by new one 's every year and making the resale of them, nonexistent! College 's will work with publishers and recieve kick backs for using books they publish. Adminstation for college also feel the advantage of higher tuition rates. The president of Yale salary has tripled from $591,709 in 2000, to 1.63 million in 2009.(5) With the average cost of graduating at a 4 year college at $27,293 a year, it is easy to see who is truly profitting from an attending and/or graduated student. Colleges are captializing of students in a poor economy and once out of college, their is no guarentee employment will be waiting. In 2008, American 's lost over 10.4 trillion dollars in the financial crisis. Between 2008-2010 over 8.3 millions of jobs were lost. The government tried bailing out the country with a 4.6 trillion dollars and was only able to recover 1.1 million jobs, .9% percent of jobs. That is 4 million dollars in cost for each job recovered (NIA). Boyce Watkins, a finance professor at Syracuse University is quoted saying, "[College] is certainly an investment. The question is whether or not you get your return on that investment in actual financial capital... [and] this blanket

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