The Debt Problem Of College

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As Emmanuel Gobry explains; “If you artificially inflate demand for something and don’t let supply adjust, prices will go up”. Currently there are many high school graduates looking to enroll in college, but the market has not adjusted to the increased demand. This allows colleges to raise their prices because they are part of a sought after limited supply. In fact, college enrollment “has increased by almost 50 percent since 1995” (Campos). Expensive tuitions forces students to take out loans. Overtime, student loans can accumulate and produce massive amounts of debt, some totaling over $60,000 (Is College Worth it?). The underlying debt problem of college graduates hinders the economy, as they are then unable to pour money back into the…show more content…
The quick price increase of college tuition has been an issue for over 30 years, allowing graduates to fall into large debt. “If over the past three decades car prices had gone up as fast as tuition, the average car would cost more than $80,000” (Campos). Considering the average car costs $30,000, $80,000 is almost a 200 percent increase. Based off this statistic, it is obvious that college tuition has grown significantly. In the past, students could pay for college with money they earned from summer jobs (Campos). Now, tuition has surpassed median-family income (Ehrenberg). Tuition has been growing continuously and there are several reasons for this.
Inflation has been driving college prices up since high school graduates are looking to attend college. Over 50 percent more graduates are looking to enroll in college than twenty years ago even though the college-aged population has remained the same. Therefore, because there is a high demand for colleges and not enough space in high name colleges, these colleges are able to raise their tuition, and students have no option but to pay for it. This is how inflation works when “you artificially inflate the demand for something and don’t let supply adjust, prices will go up” (Gobry). Currently, the overwhelming demand for a college education has allowed colleges to drive up their prices.
Another driving actor to the rising college prices is that colleges are hiring more
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