Higher Education: a Wise Investment

While this is often true, it can create problems when a student does not have the money to pay for a quality education. The cost of college has risen an estimated 250-500% over the last 30 years while consumer price index has only increased by 115 percent during the same time frame (White, 2015; Eskow, 2014). The amount of student loan debt is increasing, along with the cost of college. The income of many young people today cannot keep up with the rising costs of college education and housing. Part of the problem with student loan debt begins when students choose to attend a college that exceeds their financial resources and rely on federal student loans as well as private student loans to make up the difference. Eskow found that even public colleges and universities are becoming difficult to pay for without taking out student loans often averaging $30,000 for tuition, room, and board (2014). Since many people do not have enough money to cover college education expenses, they rely on student loans, both federal and private, to fill the gap. Financial advisor Ramsey stated that often the loans students take out pay “for an off-campus standard of living, and no debt was needed to get the degree” (2013). “The Project on Student Debt reported in 2013 over ⅔ graduating seniors were leaving school with student loans” averaging approximately $28,400 (White, 2015). Taking on almost $30,000 in debt before even starting a career can have a significant impact. It can force people to get a job just to pay off the student loans, not based on what they got an education for prepared for or what they studied. This also can cause a setback in future plans, having to delay many adult milestones due to lack of

Along with the average tuition increasing, so has the average income of Americans. In order to afford college tuition, student loans, financial aid, and scholarships come in handy for the time being. Unfortunately, American’s who have finished college still have a load of debt to pay off for many years after graduating. Americans are spending money they don 't have to finance educations they are not sure are worth it. In some cases, students who find jobs right out of high school are left without college debt, but also without a degree. On the other hand, many people who attend college have large college debts yet have a decent

In 1976, the average cost to attend a four year public university was $2,175; today, the average cost to attend a four year public university is $25,000 (Snyder). This means it is 1150% more expensive to go to college in The United States today than it was 30 years ago. This obviously would create a problem on how we as people are going to pay for our higher education. Today college has become almost a necessity to have a satisfactory life, and with these rising prices some individuals believe student loans are the only option. There are many reasons as to why the prices have risen, but the one undeniable fact is that this has created a problem within our country. Which, is known as the student debt crisis, and it has been on the rise the past couple years. This problem is affecting people all around the United States, and is causing multitude of problems for them all because they wanted to pursue higher education. Wanting to better your opportunities by bettering yourself is not something that needs to be punished, and sadly that is what is happening. This problem is something that needs to be fixed for the sake of Americans and our economy, but will also take time and a multitude of steps to correct.

The increased costs of tuition and fees are making it more difficult for individuals to attend college, and they are being forced to drop out, having a major impact on graduation rates. Data stated that was stated in FACT SHEET on the President’s Plan to Make College More Affordable: A , Better Bargain for the Middle Class (2015), “The average tuition at a public four-year college has increased by more than 250 percent over the past three decades, while incomes for typical families grew by only 16 percent” (“Fact Sheet”, 2015). This is causing major stress and becoming a burden on the finances of the student and their families. In order to attend college, a large percentage of students will have borrow money because of

Higher education has become a staple of American society. With over 20 million students attending over 4,500 degree granting institutions, the role that higher education has played on larger society is paramount (Thelin, 2017). However, despite the popularity of higher education institutions, the exact purpose of higher education has changed from century to century and may serve different purposes depending on who is asked. Higher education today is arguably both a public and private good. While state and federal governments have invested in a variety of higher education initiatives, as well as assisted thousands of students with attending college through loans and scholarships in hopes that students use their acquired skills and

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

Families are now aiming low when it comes to college- or are simply not going at all. Money could play a huge part in this decision- after all, the cost of college has skyrocketed over the years, and so has the amount of student loan debt. This is something even Leonhardt admits, stating that, because of this, only about 33 percent of young adults get a four-year college degree today, while another 10 percent receive a two-year degree (Leonhardt). And even though many colleges offer financial aid packages, that money may soon be cut and the cost of college will continue to grow. It is true that, in my personal experience, just because a student is awarded financial aid does not mean they have a golden ticket to University. This leaves many desperate students the only option of taking out as many loans as they think they can handle- often more than they should. Debt is not a new issue for America, but it is still a problem. Although David Autor, an M.I.T. economist, laments: “not sending [young adults] to college would be a disaster”, no one can ignore the rising rates of loan defaults, and some think it

Getting a “good” job is not straightforward as it used to be. In past generations, someone in an entry-level position could work their way up the ladder simply through hard work and determination; whether or not one had credentials or a diploma mattered very little. This is not the case today. Higher education is now critical to obtaining a better job because the demand for skilled labor is rising. For this reason, the value that a degree offers is higher than that of one’s actual intelligence or merit. Furthermore, workers without college degrees will quickly be outpaced in position and salary by degree

Many families have been left with few options due to the enormous obstacle placed before them. These problems have deterred many aspiring college graduates, some are left too afraid of the price tag associated with higher education to complete their education. And for some even begin it. Good paying careers are the major push for college education however,  "The bar is getting higher for well-paid jobs, with most requiring a college degree..." (Biola and Rodriguez 5-6 ). This leaves America's youth with a decision that should not be as hard to make as it actually is. Is the risk of staggering debt in their future really worth it when they have seen others before them struggle to find good work even with a degree? With all of the talk of high tuition up to the national level many critics have decided to add their two cents into the debate. In "Democrats' loose talk on student loans", the author points out that, "44percent of students at two- and four-year institutions do not borrow at all," (paragraph 2) While this is a factual statement, having 44% of college students not borrowing money is nothing to sneeze at. Despite the fact that the number is smaller than what one would normally expect it does not make the effect of student debt any less important or devastating in some extreme situations.  The author continues by stating, "And of those who do, 59percent borrow less than

When discussing further education for a high school graduate, attending a university is very costly. The use of federal loans became dependent on most American families that try to provide such an education to their child. Before World War II, academically advanced students from families that were unable to finance college could apply for competitive scholarships; Scholarships mutated into “financial aid” when the GI Bill of Rights financed college for the discharged veterans (Toby, 2010). Since then, student loan debt has surpassed $1 trillion, which is larger than debt accumulated from both credit cards and auto purchases (Student Loan Debt No Longer Just Problem for Borrowers, 2012). With the increasing amount of loans and the uprising cost of college, students fall farther into student debt every year. Whether it is at fault of the university, the poor economy, or the aid programs in general, students should not be required to pay back their federal student loans before finding a steady job in their field of study.

Nowadays, we are always bombarded with the constant studies that show the economic benefits of going to college. For example, one study suggests that the average earnings gap for a high school graduate and someone with a bachelor’s degree working full time is about $15,000 (Owen and Isabel 210). But, all these sources only focus on the economic benefits and they make it seem that the only way to succeed. However, they don’t mention as much the possible negatives and that it might not be for everyone. The biggest obstacle, especially for the lower class students is the high cost of tuition. Which has caused student loan debt to become the second highest form of debt in the U.S, surpassed only by mortgage debt (Owen and Sawhill 212). Even if the student figures that out then there’s the problem of finishing school. Studies show fewer than 60% of students finish their 4-year degree within 6 years, if they finish at all (Owen and Sawhill 218). Then for those who do obtain their degree there’s the

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

Many people think of investments and imagine real estate, or stocks, but fail to visualize the ideal that going to college is an investment in your own future. Historically speaking real estate has only a “less than 1 percent(leonhardt)” return rate, for stocks it is only “7 percent(Leonhardt)”,but, for college the return rate is over double that of stocks at “more than 15 percent(Leonhardt)”. This shows that going to college is one of the wisest decisions that you can make for you future,with a return over double that of stocks, and nearly 15 times the return of real estate. The average in-state tuition for a public college is $9,650 dollars per semester,so the return for that would be $11,097 dollars..Another aspect of college that makes it worth the cost is that it helps prepare students for the real

There is a correlation with the student loan debt that has been under watch for quite some time. The cost of a college education has been on a constant increase and has outpaced inflation. It has been shown and is proven that a student who comes from a higher social-economic status then others, as well as parents who are educated with bachelor and or master degrees are more likely not to be in debt or severe debt compared to someone who is not of the same background and of a different social economic status .For example, a parent(s) who live in debt or below the poverty line. Many of these students rely on student loans in order to escape and or bypass these social obstacles. In fact, according to Soilis and Durband (2015, p.93) attending college and acquiring a degree is considered a wise financial decision by many. This is because college graduates statistically increase the amount of income earned over their lifetime. Education has been seen and becomes more of a human capital investment (Becker, 1964) that reaps

Twenty-one million students are anticipated to attend some sort of higher education (Barrow et al.). And tuition costs are reaching all-time highs; about high as the salary an average American makes in a year (Kay 36). This is a drastic change in the higher education system in America. Colleges used to be mainly religious institutions hundreds of years ago and were based on moral training and proper conduct. Overall, making better people for society. In the present day, American colleges are helping aid students in getting jobs while building up the student’s values. Many have pondered over if the value of higher education that is taught is worth the price being paid. Some have said that the costs are too high for anyone besides the upper class, but people are still enrolling with increased rates each year. Higher education is worth the price because it provides lifelong benefits to the people who graduate with a degree. People who obtain a degree attain life skills that everyone should learn, get paid more money in their lifetime, and gain a quality education.