Introduction
Every segment of the American economy is under pressure and college education has not been left behind. The cost of college education has risen sharply in the recent past and a big percentage of American College students risk being left out of college education if the cost rises further. The increase in costs has come forth in spite of the excruciating cost-cutting done by colleges on every activity in the institutions. The increase in tuition fee actually outperformed the overall inflation rate.
The increase in cost of college education in US could eventually put college education out of reach for most Americans (National Center for Public Policy and Higher Education Report, 2011). This problem could also affect the global competitiveness of the United States. According to the National Center for Public Policy and Higher Education Report issued in December 2008, :College tuition and fees adjusted for inflation rose 439% from 1982 to 2007.” This figure was higher than the corresponding increased in medical care, housing and food. During the same period, the median family income rose by 147%. This problem is driving a large number of college students away from students as the costs are increasingly becoming unbearable. The government therefore needs to move with speed in order to rectify this problem before it gets out of hand.
The cost of college education for a year rose by 6% in 2006, surpassing wages, inflation and finacial aid. The cost of obtaining a degree is actually rising even faster since many students are taking longer to graduate. Students who are supposed to be taking 4 years, are taking an average of six years to complete their studies. They are therefore forced to pay for tuition fees for six years instead of the four years that they were supposed to take. If the prices continue rising at the current rate, students who do not receive any grant will have to pay about $115,000 to reach graduation day. University officials are saying that they are raising the sticker prices so as to counterbalance the eductions in the subsidies that the government provide for higher education. the grants that most of the universities are receiving to date is the same to the amount that they used to receive about five years ago. Therefore in order for the institutions to balance the increase in salaries, wages, cost of energy and other operating costs, they have to increase the cost of tuition fees so that they can bridge the gap. The costs of running the universities are also increasig faster than even the consumer price index.
Many colleges are also experiencing pressure from the parents and the students to carry out upgrading process for most of their systems and facilities. Colleges that do not improve on their facilities are left out of business. Some students prefer attending colleges that offer better services even at a higher cost. Therefore some colleges are forced to improve on their facilities but this also comes with a corresponding increase in the amount of fees being offered for the facilities since this is the main source of funding for the institutions.
Posible Solutions to the Problem of Rising Cost of College Education
With the rising cost of tuition fees, students are increasingly realizing that grants and loans are not always sufficient for covering all the costs involved in the provision of college education. The problem that is worrying most students is that as the cost of tuition increases, the federal grants are being decreased. This has forced many students who cannot take up additional grants to take up more loans or find other sources of funding their education or drop out of college. One of the solutions that can help in solving this problem is students taking up two year courses. Most colleges that offer two-year courses do not have dorm facilities. This eventually puts the cost of getting degrees from such colleges relatively lower as compared to other colleges with a four-year program where students also stay in campus. The government should encourage the establishment of two year colleges like Georgia Perimeter College and Atlanta Metropolitan College which have a relatively lower cost.
Easing students’ loan interest rates can also help in reducing the cost of education. The law makers should also think of slowing down the relentless rise in the cost of college education. Most colleges increase their fees at will and this has contributed towards the sharp increase in the cost of college education. If the law makers can vote to stop the colleges from random increment in the cost of college education, then the cost of college education will definitely go down.
Provision of federal aid can also help in reducing the cost of education. However, if the aid is provided but there are no strict measures to keep this in check, the colleges are likely to increase their costs even further. Therefore, the aid should be provided with an accompanying condition aimed at controlling the cost charged by the colleges on the students.
The state should improve on their support for the colleges as inflation increases. Since the cost of running the colleges has greatly increased and the rate of inflation also increased sharply, the colleges require more funds to run. The government should improve on the amount of resources that they set for the colleges so that they can be able to hit a balance. This will prevent the colleges from passing the extra costs to the students.
Annotated bibliography
1. Sandra Block, Rising costs make climb to higher education steeper. USA TODAY December 2007
This article examines the rising cost of education, the causes and the remedies that can be taken in order to caution the public against the ever rising cost of college education. According to the author, the amount of federal aid has declined thus forcing more students to borrow. She states that an increase in the amount of federal aid can make the colleges increase their fees even further. However, in order to control the problem of the escalating cost of college education, she proposes that the government should increase their funding to the colleges so that it can help them cope up with the increasing rate of inflation. With this the costs will not be passed to the students thus making the cost of college education to remain constant or even reduce further.
Sandra Block is a personal finance columnist with USA today who contributes every Tuesday on the column. She has a wealth of knowledge and experience in US financial matters. She has also done a thorough analysis on the effects of inflation to the American economy and brings with her a wealth of information with her contributions.
2. Cheyanne Hunter, Solutions to the rising cost of college tuition Atlanta Continuing Education Examiner, April 29, 2011
This article analyses the factors behind the increasing cost of college education. The author takes us through a thorough analysis of the situation and how it started. She also manages to sufficiently demonstrate the imbalance that exists between the rise in the cost of college education and the rise in the amount of income different families get. According to the author, the cost of college education has risen by over 35% in the past five years. The government has not done much in order to protect the students and their parents from the ever rising cost of education without any corresponding relief from the government. She proposes that students can help get a solution through attending colleges that do not offer dorm facilities and seeking accommodation elsewhere. This is mostly common with two year degree program colleges. She also proposes that the government should try to increase their funding to the colleges so that the colleges can run those institutions effectively without asking the students to pay more.
The author graduated from Georgia State University with a major in Sociology. She has dedicated her time to writing informative and helpful topics. She has done a series of research dealing with the welfare of individuals.
3. Fred Lucas. Analysts: Obama Student Loan Policies Ignore the Real Problem – College Costs October 25, 2011
This article examines the improvements and the measures that have been taken by the US president in order to caution the public against the escalating costs of college education. According to the author, the policies put forth by the US president are not addressing the real problem but instead ignoring the real problem. He states that the actions that have been taken by the administration like rolling out new student loan relief has not targeted the main problem. He proposes that in order for the public to help solve the situation and eventually reduce the stress that they undergo in the process of paying for college education, they can put greater focus on online courses thus reducing the overall cost of obtaining college degrees. This can be done by encouraging the state Universities to put more contents online and eventually reducing the burden.
4. David Leto, Florida colleges are going to cost more, Fort Lauderdale Personal Finance Examiner
This article takes a case study on Florida and outlines the reasons behind Florida colleges costing more than other states in the US. The universities assert that the increment is needed so as to cover the budget cuts so that the colleges can continue to run efficiently. The increment in cost of the colleges is blamed on inflation and the increase in the cost of running the institutions. The author adds that in order for the colleges to remain in business they have to increase their fees. However, in order to control further increases or even reduce the cost, the government needs to improve its funding to the institutions so that they can continue to offer quality services to their students.
5. John L. Rury; Education and Social Change: Themes in the History of American Schooling; Lawrence Erlbaum Associates. 2002.
This book examines the sources of funding college education in the US. Most students in the US are not able to finance their education. Therefore they rely mostly on grants and loans from the government and other financial institutions. The author argues that the rate of inflation has been on the rise in the recent past and this has resulted into many students undergoing a lot of stress as it comes with a corresponding increase in the cost of college education. The government should increase the amount of grants that they offer to the public colleges so that they can cope up with the increasing rate of inflation. This will help in reducing the amount of fees charged by the colleges as this has been one of the main reasons that they use for increasing their tuition fees.
Work cited List
1. Cheyanne Hunter, Solutions to the rising cost of college tuition Atlanta Continuing Education Examiner, April 29, 2011
2. David Leto, Florida colleges are going to cost more, Fort Lauderdale Personal Finance Examiner, 2011
3. Fred Lucas. Analysts: Obama Student Loan Policies Ignore the Real Problem – College Costs, October 25, 2011
4. John L. Rury; Education and Social Change: Themes in the History of American Schooling; Lawrence Erlbaum Associates. 2002.
5. Sandra Block, Rising costs make climb to higher education steeper. USA TODAY, December 2007
