How Does An Increase In College Tuition Prices Affect Studen

How Does An Increase In The College Tuition Prices Affect Studentsin

How does an increase in the college tuition prices affect students? In the modern world, we are being faced with constant fluctuations in prices of almost everything. This can be attributed to inflation, and the loss in value of currencies. Education is one of those areas that has been affected. The cost of education has been on the rise since time immemorial in the United States.

It is estimated that college tuition prices have increased by 1120% since 1978 (Reaume). This figure exceeds the increase observed in food and medical sectors. Bloomberg reported that college tuition has risen four times faster than the consumer price index (Reaume). This sudden increase has also outpaced inflation, particularly noticeable since 2012. CNN reported that the cost of public education is just under $6,000, while private college tuition averages about $25,000 (Thompson). These hikes in tuition fees are alarming and often unintended, yet they have detrimental consequences for students who are unable to meet the rising costs of education.

The reasons behind increasing education costs are varied. Some of the main factors include the need for colleges to fund improvements, technology updates, and infrastructure development. Many colleges are striving to become state-of-the-art institutions to attract more students, transforming some into more business-oriented entities. This shift has led to colleges partnering with financiers and investing heavily in new buildings, equipment, and technology, which inevitably raises tuition fees. However, these costs are often passed on to students, making education more expensive. As the saying goes, "nothing good comes cheap," and this is evident in higher education as quality and modernization come at a cost.

Additionally, the rising cost of living impacts tuition. Faculty and staff demand higher salaries to sustain their families and lifestyles, which increases operational costs for institutions. Schools also need to hire qualified staff to maintain quality, further escalating expenses. In some cases, state funding for higher education has been slashed due to economic downturns, recession, and tax cuts. According to Salt (2011), “As almost every state reels from the effects of recession and tax cuts, legislatures slash funding for higher education.” Similarly, Gallaher (1998) noted that “A need to improve facilities, declining state budgets, and inflation are all contributing to rising costs,” with no immediate end in sight.

The increased demand for college education, driven by societal and economic factors, exacerbates the cost issue. Historically, college was subsidized by governments, making it more accessible. However, as tertiary education became a necessity for success in the modern economy, prices surged beyond affordability for many. The Higher Education Act of 1960 aimed to increase college attendance and made higher education more accessible. Yet, it also laid the groundwork for colleges to operate more like businesses, seeking profits through increased tuition. Consequently, the steep tuition fees have created a financial barrier for middle-class families, despite government efforts to support affordability.

The escalation in tuition fees has several adverse effects on students. Primarily, many students are unable to pay the increasing costs, leading to higher dropout rates. Thompson (2015) reports that rising tuition results in students dropping out or delaying graduation, often taking fewer courses to reduce costs, which extends their time in college. The financial strain also causes students to seek loans, leading to significant debt burdens. The US student loan debt has reached over $1.2 trillion, with an average loan amount of approximately $33,000 per student (Reaume, 2014). These debts impact graduates' financial stability and limit their ability to make significant life investments, such as buying homes or starting businesses.

Student loans have fueled the cycle of debt, with about 70% of American students financing their education through loans. The repayment obligations, often with high interest, burden graduates especially when they are employed in low-paying jobs. If graduates struggle to repay their loans, it can adversely affect their credit scores, ability to save, and overall economic productivity. Furthermore, these financial challenges often lead students to work part-time or full-time jobs during their studies, reducing their academic engagement and overall college experience.

The rise in tuition costs also impacts access to education among less privileged groups. Students from low-income backgrounds often have limited access to scholarships and financial aid, compelling them to work multiple jobs or abandon higher education altogether. The increasing cost causes a decline in college enrollment, especially among low-income and middle-class students. A study by Thompson (2015) indicates that every $100 increase in tuition can lead to a 0.25% decrease in college enrollment rates, highlighting how affordability directly influences accessibility.

Contrasting the US with other countries reveals stark differences. For example, Saudi Arabia subsidizes education extensively, covering costs from kindergarten through university. Saudi Arabia spends about 5.6% of its GDP on education, providing free education at all levels and offering numerous scholarships for studying abroad (Arif, 2013). This approach ensures high literacy and higher education attainment without the burden of debt. The government funds over 150 vocational centers and 24 universities, facilitating accessible education. Citizens benefit from free tuition, minimal costs for learning materials, and substantial government-financed scholarships. These measures contribute to an educated populace and economic development.

In contrast, many Western countries face escalating tuition, emphasizing the need for reform. Countries like Germany and Scandinavian nations offer free or heavily subsidized higher education, resulting in higher enrollment rates and low student debt levels. Conversely, the US experiences declining enrollment as costs rise, which may threaten future workforce development and knowledge economy competitiveness. The situation in Saudi Arabia exemplifies a model where government investment significantly reduces barriers to higher education, fostering social mobility and economic growth.

The increasing tuition prices demand a reevaluation of higher education funding policies. Governments and educational institutions must find sustainable solutions to balance quality and affordability. Increasing public funding, implementing tuition caps, expanding scholarships, and encouraging private sector investments can mitigate the adverse effects. Equally important is improving financial aid systems to support disadvantaged students and reduce dependence on loans. Policymakers should prioritize making higher education accessible, recognizing its critical role in societal advancement.

In conclusion, the steady rise in college tuition fees profoundly affects students, from increased debt burdens and dropout rates to reduced access for lower-income groups. The trend threatens the principle of higher education as a catalyst for social mobility and economic development. Comparing the US to countries like Saudi Arabia indicates that substantial government investment and subsidization can create equitable opportunities for higher education. Therefore, a concerted effort involving policymakers, educational institutions, and private stakeholders is essential to ensure that higher education remains accessible, affordable, and of quality, securing individual prosperity and national progress in the future.

References

• Arif, R. (2013). Education in Saudi Arabia. Souqalmal Corporation. Retrieved from https://www.souqalmal.com
• Gallaher, F. (1998). Higher education: Tuition increases and colleges' efforts to contain costs: Report to the Honorable Charles E. Schumer. Washington D.C: House of Representatives.
• Reaume, A. (2014). USA Today Corporation. Retrieved from https://www.usatoday.com
• Salt, R. (2011). Education benefits: Increased oversight of Tuition Assistance Program is needed. Report to the chairman, subcommittee on Federal Financial Management, Government Information, and International Security. U.S. Senate.
• Staff, Classbase. (2012). College tuition trends and affordability. Classbase Corporation.
• Thompson, V. (2015). Everyday Life Corporation. Impact of rising tuition on student enrollment. Retrieved from https://www.everydaylife.com
• Reaume, A. (2015). Report on college tuition increases. USA Today Corporation.
• SalluÌ„m, H. ibn IbraÌ„hiÌ„m., et al. (1995). Education in Saudi Arabia. Amana Publications.
• Gallaher, F. (1998). Higher education: Tuition increases and colleges' efforts to contain costs. House of Representatives.
• Arif, R. (2013). Education in Saudi Arabia. Souqalmal Corporation.