The Costs Of Gaining A College Education Skyrocketing?

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One of the most common debates among college students and educators alike is the rising cost of higher education and its implications. This is also a hot topic in politics, as can be seen in recent efforts of the current administration to reduce and eradicate student loans for Americans and to implement better programs and subsidies for students. Today, the cost of a university education and related fees has far surpassed the rate of inflation and the rate of minimum wage, housing prices, and other elements of the consumer price index. In fact, the cost of higher education has increased 12-fold since 1978. Yet, the typical American family’s income has only increased roughly half that much. In fact, in 1970 tuition was just $358 per…show more content…
Additionally, because higher education costs so much students are taking on huge amounts of debt to pay for it; in fact, students loans account for more debt than credit cards.
Furthermore, to understand the cost of higher education, we also have to look at what we consider the “price” of college and how institutions come up with this number. According to most models, the cost of tuition is the cost charged by the school of choice minus any financial aid; it actually has little to do with the school’s actual costs. We also have to remember, too, that schools gather revenue from other sources than tuition as well, usually in the form of fees, money from federal and state governments, etc. This is important to consider in this discussion because the amount of tuition students pay is not enough to cover the cost of running an institution, private or public, there is always a shortage to cover. It’s also important to remember that schools are a business and businesses are aimed at making money.
Most universities fall under the umbrella of nonprofit and thus operate accordingly. According to authors Archibald and Feldman, for a private university, tuition and fees make up only 33.4% of total revenues, and for a public university, only 18.4% of total revenues come from tuition and related fees. This means just about all schools have to make up the difference in revenue in order to stay in business. This revenue usually comes from the
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