by Stephen Fortin
College costs have been steadily increasing since the 1970’s. As of late, the costs have continued to sore at an even faster pace. Accompanying the rise in college education costs is student loan debt. In fact, the recent 2012 grad owes over $29,000 in student loans. This is up from more than just over $9,000 in 1993. With this increasing burden on America’s younger generation it would seem logical to lower the federal interest rate on student loans.
Current students are paying about 4.66% interest on student loans, although there are many others who have interest rates which are locked in at above 9%. It seems obvious that higher education is vital to America’s economical future. Having a well educated public defines a society and an economy. Despite this however, lawmakers are rejecting proposals to lower federal student loan interest rates. In fact, government seems to believe banks should pay lower interest rates on federal loans than students. Banks pay a rock-bottom interest rate of only 0.75%. College costs are a huge issue plaguing the prospective college student, but it seems the government prefers to see banks prosper than young Americans invest in their own futures.
As many Americans struggle with paying back college debt the government seems to turn a cold shoulder. College costs and debt should never be a matter of politics; yet as many struggle to pay back debts, government struggles to see the problem in favoring banks over students.
Quandt, Katie. “College Has Gotten 12 times More Expensive in One Generation.” Mother Jones. N.p., 3 Sept. 2014. Web. 21 Sept. 2014. <http://www.motherjones.com/politics/2014/09/college-tuition-increased-1100-percent-since-1978>.
by Taylor Englert
When it comes to the costs of higher education, one thing everyone can agree with is that it is getting out of hand. In the last year tuition and fees have increased 8.3%, which more than doubled the rate of inflation. This increase was not a surprise. It followed the trend of increasing tuition costs that has been occurring for the last decade at an average rate of 5.6%. On top of the high costs, a college degree has become a necessity to obtain a decent career. The only solution for students has become borrowing. The federal government is lending over $100 billion dollars a year to students. Private loans on top of that have left many graduates unable to keep up.
Kevin Carey, a director of Education Sector, a think tank in Washington D.C, compares entering college to getting smuggled across the border. He says “you can get to the promised land if you try hard enough, but you arrive in a state of indentured servitude to the shady operators who overcharged you for the trip.” The image he portrays of the costs of higher education is dark and striking, but realistic. Carey acknowledges the hard work the government is putting in trying to mitigate costs, but doesn’t see it as progress when the tuition fees are still increasing astronomically.
The problem is obvious, but the solutions are vague. Carey sees the high costs as an “inevitable consequence of the way higher education system is currently design.” The system is broken and “static.” It is not changing and developing with the needs of the time. Most higher education institutions are founded in their old ways and traditions. They do not desire to change. Carey believes the government needs to threaten the institutions for reformation to ever occur. The institutions are benefiting themselves when they need to put students and public interest first.
by Maria McLaughlin
When students today are enrolling in colleges and universities across the United States the costs as well as the funding is much different than it was a few decades ago. It is interesting to note that 48 out of 50 states are spending less money to finance student educations than they were prior to the ‘Great Recession.’ This means that only 2 out of 50 states are spending the same or more money on financing student educations. Many states are even continuing the trend of reducing funding, which seems to be a problem for students who are collecting boatloads of debt as they continue through college.
States contribute greater than 50% of the financial support that public institutions need. The reduction in public educational spending has detrimental effects directly on the students of these universities. This results in the increase of tuition and decrease in educational services. It was reported in CBPP that since the 2007-2008 academic year, tuition has risen on average 28% (~$1,936 inflation adjusted). Some states have increased by double that rate, and upwards of 80% increases. These factors don’t even represent the increases in tuition for private colleges and universities.
Higher amounts of tuition are spiraling students into debt by the second. This is alarming also because there are high levels of interest that can accompany a student’s finances, depending on the lender. It is disappointing to note that states are continuing to reduce funding for students, and it is a serious issue to be loading on debt to our nation’s future.
Reference: “States are Still Cutting Funding for Higher Education.” 1 May 2014. Huffington Post