Economic Analysis Of Elite Higher Education

The elasticity of demand measures the buyer’s reaction to price as its changing. “Economists measure the degree to which demand is price elastic or inelastic with the coefficient E d, defined as E d = percentage change in quantity demanded of product X/ percentage change in price of product X” (McConnell, C. 2011). Therefore, Ed=∆Qd/∆Pd. When elasticity of demand is measured less than one, demand is considered to be inelastic. The coefficient in an inelastic range is less than one. When this takes place the percentage change in price is more than the percentage change in quantity. It can be said that when inelastic demand is present that quantity becomes less effected by price changing.

In 1965, the United States legislature passed a historical legislation called the Higher Education Act of 1965. This was an important legislation intended to strengthen the resources of our colleges and universities and to provide financial assistance to students in postsecondary and higher education. Today, this act remains the foundation for most postsecondary education subsidies, including the Federal Pell Grant program. Since its inception, the federal government has continued to provide varying amounts of funding for higher education in hopes of encouraging college enrollment by reducing college costs. Yet, according to the Department of Education, the United States, once ranked a global leader in postsecondary education, has

College rising tuition is currently the hottest topics debated by political and social interest’s groups who pretty much understand that if this is not fixed soon, it will have long damaging effects on our convalescent economy. It is important to be reminded that college education play a tremendous multiplier role in our economy that holds more the 50% of college graduates. (College Has Been Oversold by Alex Tabarrok.)

About century ago, the United States had the most educated workforce in the world, thanks to the movement that made high school free and available for everyone, but today many nations exceeded that level. According to “Education at a Glance” report of the Organization for Economic Cooperation and Development, U.S. college graduation rates rank 19th out of 28 countries studied by the OECD, twenty years ago the United States was first among OECD member countries, since that time more countries focus on increasing the number of college graduates; therefore, U.S. falls behind the competition (Weston.) This clearly indicates that the United States’ tertiary education needs a serious initiative like Obama’s plan to push up the college graduation

The cost of tuition among colleges and universities is highly diversified and indefinite. Students shouldn’t be financial problems that are associated with the high tuition cost for their education because it creates unnecessary stress and financial problems. The student’s primary concern should be their academic performance and learning. The tuition fee includes extracurricular expenses such as lifestyle amenities that may not be essential toward the student education yet they are still being charged for it. Universities and colleges are lacking a stable and regulated tuition system to provide a better education for a reasonable price. The high tuition cost affects the academic performance, enrollment in higher education, and increase

In the past fifty years since the inception of the Higher Education Act, federal policies regarding financial aid have expanded in scope, intent, and access. Prior to this landmark legislation, federal intervention and financial support of higher education was minimal, with most of the control lying with individual states. Whereas financial support for higher education was previously directed at institutions, federal financial aid provided funding for individual students, initially as a means for increasing access for underrepresented and disadvantaged populations. The evolution of federal financial aid represents the historical, political, and policy changes during the past five decades and illustrates the gradual shift in societal values

This report is part of The College Board’s “Trends in Higher Education Series” that are published annually to provide evidence to policy makers to help aid in decision making. It includes comprehensive data and charts that show that higher education does pay off for graduates. The authors discuss the benefits of higher education both for the individual and for society as a whole. The benefits that are discussed in this report include lifetime earnings, employment rates, job satisfaction, health benefits, benefits on the family, civic involvement, and an increase in voting rates by college graduates vs. non-graduates. The authors use data from the U.S. Census Bureau in their calculations, so this report is a great resource with a really good representation of the population and large sample size.

The overwhelming cost for higher educational institutions is causing a huge concern over whether higher education will be an attainable financial concept to the ordinary student in the upcoming years. Many Americans now tend to believe that the path to obtaining a degree has turned into distraught with financial traps. Recent studies done by the U.S. Department of Education show that “college tuition and fees have ballooned 1,120% since 1978. A year of college tuition for

The way higher education is being financed is becoming increasingly dysfunctional. State appropriations are declining; educational cost is rising; and cost per student is increasing faster than inflation or family income. Affordability is directly affected by a financing system that provides limited incentives for colleges and universities to take aggressive steps to improve institutional efficiency and productivity. Public worry about increasing expenses might eventually add to the disintegration of open trust in higher education. Only through reform can confidence in higher education in America be renewed. The Secretary of Education’s report states that America must ensure that our citizens have access to high quality and affordable educational, learning, and training opportunities throughout

Post-secondary education in the United States is often viewed as a necessary step towards financial security mostly for those who take part in it. The introduction of the GI Bill in the year 1944 labeled the post-secondary education as a larger part of the American dream because it acted as a ticket towards economic security. Today, approximately 20 million students in the United States are in pursuit of a bachelor’s degree, masters, or any other type of higher-level education such as certifications and specialized courses (Friss, 2012). This elevated number of students interested in becoming educated denotes that the cost of advanced education has and will simultaneously continue to increase. Therefore, this fact has its pros and cons depending on the career of choice and especially depending on how much one receives in return once entered the workforce.

Students in today’s society are prompted by all teachers to go to college, and this idea is being reinforced more than ever. Although there are a select few people that do not belong in college, this idea has never been more true. Jobs that require a college degree are becoming more abundant, and these jobs need to be filled. The only way these jobs can be filled is if the number of college graduates increases at the same pace as jobs that require a college degree are. Many issues over time have arisen on this matter, which has slowed down the growth rate of college degrees produced. Although these issues have slowed the production of college degrees, the demand has never been more high. There will always be jobs that do not require a college degree but the most important jobs to our country’s growth will require a person to have a postsecondary education.

All high school graduates should be able to attend public two or four year college or university in their home states without having to worry about whether they can afford the tuition and fees. Colleges and universities, even public ones, need revenue to pay faculty and staff adequate wages commensurate with their own educational attainment and professional role, build and maintain facilities, and keep the lights on. Total tuition and fee revenues at public two and four colleges totaled less than $64 billion in 2013. Included in that total was tuition and fees paid by grants and loans. Using data from the National Center for Education Statistics’ in 2012 National Postsecondary Student Aid Survey, it is possible to estimate the net tuition and fee revenue from undergraduate students after all grants are applied. Analysis suggests that the net tuition and fee revenue received from public two and four colleges and universities is substantially less. The same time they earned $58 billion in revenue from tuition and fees. But after subtracting the grants provided, the net revenue, was only $34 billion or 59 percent of gross revenue.

It has long been known that success in today’s world requires more than just a high school diploma. In 2009, President Obama made this a goal of education reform and challenged Americans to pursue post-secondary or career education in an effort to grow a competitive workforce and to restore America’s position as a leader in the global economy. For individuals, increased degree attainment leads to higher wage earnings (Baum, Kurose, & Ma, 2013 as cited in Karp, 2015), and decreased unemployment (Baum et al, 2013). Despite the data on the value of higher education for individuals, there has been limited growth in college enrollment rate of those from low income families. (Baum et al, 2013) The postsecondary reform agenda addressed college readiness

In recent years, college attendees have been paying more to go to school and acquiring less upon graduation—which have driven numerous onlookers to address whether a college degree remains a decent venture. Be that as it may, an investigation of the financial returns of having a college degree since the 1970s shows that the advantages of both a bachelor’s degree and an associate’s degree still have a tendency to exceed the expenses, with both degrees winning a return of around 15 percent over the previous decade. The arrival has stayed high regardless of rising educational cost and falling profit since the wages of those without a higher education have too been falling, keeping the school wage premium close to a record-breaking high while diminishing

While each country and university faces specific and often distinctive challenges, there are common factors that affect most countries around the world today. Ensuring maintainable higher education systems at the same time that public funding is decreasing and competitiveness is increasing. Cultivating the worth of the total student experience even as the demand for involvement is growing. When an economy is dwindling, enrollment in tertiary level institutions rises as persons seek to pursue new careers, acquire knowledge and upgrade their skills to prepare them for better job opportunities. This is a promising trend and indicates how well citizens understand that tertiary education is vital to their personal success and the country’s competitiveness and eventual economic growth. Nevertheless, acquiring tertiary education affordability is a critical component. Public divestment, student’s confidence in college education and workforce confidence in college graduates, higher education faces many challenges in the coming years.