Market and Government Failures in Reducing College Cost

1311 WordsJun 16, 20186 Pages
There was a time in America where college was based solely on merit, higher education and pursuing the American Dream to obtain a career and gain social status to be successful in society. According to the Economist newspaper, rising fees and increase of student debt, shared with dwindling financial and educational returns, are undermining at least the perception that university is a good investment. Now due to high cost of an average good university, students are leaving college owing back over $100,000 and are not getting the job of their original dreams. Colleges have failed to stabilize tuition cost and has risen almost triple the cost since the 80’s in reference to The Economist news paper. In our country only 57% of Americans…show more content…
As tuition continues to rise, the Daily Journal states that the current Obama administration caps the amount of undergraduate loans that can be forgiven at $57,500. Although for those who desire to pursue a graduate degree, they are subject to no cap, meaning they could accumulate up to $150,000 or more in debt in addition undergraduate loans. Garrahan, & John. (2014, May 02) As the government works to forgives loans for students whom completed their degree, will that stop the excessive spending of the institution? The government forgives huge debts, but a plan need to be develop to be a overseer of where does the funds go if students are receiving a large portion in grants and scholarships, as the years go on, college may only be affordable to the wealthy if tuition does not keep rising. The government needs to cap the tuition instead capping the loans already dispersed. In reference to the rise of tuition, tuition has risen 1,120 percent since 1976 as wages only increased 6 percent as of the same year. Clingman, J. (2014, May 05) Though most colleges are businesses, the government plays a major responsibility due to that this is the standard to keep the economy going as people need to get jobs in order to pay back these loans and build the economy. The periodical, University Wire written by
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