We’re excited to announce that knowyourcollegecosts.org is back up and running! We lost the domain name for a couple of years and have been operating solely on our wordpress site. We’ve got the domain name back and are getting ready to restart our regular posting. Please check back frequently as we restart our discussion of issues related to the costs of higher education.
Here’s our new video exploring Financial Aid.
Check out our new video exploring what students know about student loans.
by Gabriela Faux
Paying for college has become a growing struggle for students, especially those working their way through school. Recent studies show that working more than 20 hours a week negatively affects grades and the odds of graduating. However, studies also show that students who work 10-15 hours a week are more likely to receive higher grades and graduate. 18% of students who took more than 4 years to graduate said it was because they took fewer classes in order to work. Temple University has implemented a new program aimed at reducing student debt, called Fly in 4. The goal of this program is have students graduate in 4 years by giving students resources necessary to meet the 4 year goal. In addition, 500 of the neediest students in each class receive a grant of $4000 a year if they agree to work no more than 15 hours a week. This grant money supposedly covers what the student would make if he/she was to work 30 hour weeks. Students enrolled in this program must meet with their academic advisor once a semester, register for classes that pertain to their major, and complete 30 credits a year. If students meet all the requirements but still do not graduate in 4 years due to an unavailability of necessary course, Temple would allow students to complete the courses needed free of tuition.
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by Joseph Betz
The rising cost of college is no myth, including compensation for inflation, the cost of tuition and fees at a public university is now 4 times what it was 40 years ago. While government aid covers some of this burden, students still must resort to taking massive student loans to cover the cost of a higher education. But can the government afford to do more?
11.1 million students attended public colleges and universities in 2014, taking into account undergraduates and graduate students. States spent $73 billion funding higher education in 2014 leaving students with $64.3 billion in tuition, which comes out to $5,793 per student on average. In 2000, states spent $51.9 billion which left the 8.6 million students with $21.5 billion in tuition, coming out to an average cost of $2,500 per student.
Bernie Sanders has proposed his “College for All” plan that would aim at paying for this $73 billion tuition bill by increasing federal funding by $47 billion and state funding another $23 billion. The federal government would pay $2 for every $1 that state governments spend on tuition at public universities. In addition to drastic tuition aid, the plan calls for cutting student interest rates to about 2% for undergraduates. The cost of this plan could potentially be up to $750 billion over the course of 10 years.
Sanders plans to fund the program by imposing a 0.5% fee on stock trades, a 0.1% fee on bonds, and a 0.005% fee on derivatives. Warren Gunnels claims that this would raise up to $300 billion a year, citing a University of Massachusetts report, whereas Steve Rosenthal, a Tax Policy Center senior fellow, reported that it would only raise about $51 billion.
The expanded access to low cost higher education would be revolutionary, with far reaching societal and economic ramifications.
by Justin Jackson
I can say almost with absolute certainty that many of us students attending Widener University enjoy the many amenities and appurtenances the school has to offer, from the Pride Recreation Center to the new Harris Hall and its conveniently located Moe’s Grill and Einstein’s Bagels. They, as well as everything else, are very appealing and most certainly do add to the bonuses of the campus and the school as a whole. However, the cost of such benefits and additions is very much a big one to bear. Today, as many high school students are comparing their prospective schools of choice, I know that they all are considering what the school of their choice has over other schools descending their “maybe” list. But, what they – as well as the many currently enrolled college students – may not know is that the cost is being passed down to them in this race to build a showcase campus. According to New York Times writer Andrew Martin and researches at Moody’s, the debt colleges and universities have amassed to attract students to attend their school through building and expansion is well over $200 billion. To pay off these high prices, the colleges raise tuition, which cause more in student loans. One such example of elaborate and exuberant building seen on campus is the one built by the Cooper Union in New York City a few years ago. That development caused the already struggling school to amass more debt.
I fondly remember reading an article back when I was a freshman that caught my attention and frankly caught me by surprise because of its strong and fierce claim: college is a big business. Though I could not fathom the reasons behind such an article headline at first glance, upon reading the piece in its entirety, I soon came to understand that higher education has become a business, from the hierarchy of administrative staff all the way down to the mechanism used by colleges and universities to add to their funding. Education is a business because now it is more evident that the race to educate more students is so fierce so colleges can at least attempt to muddle themselves out of the debts they have acquired.
by Eric Guzy
Tuition for college is commonly described as being overpriced and far from payable on the salary of a student working part time at your local diner. However, how come it seemed that the prior generation, with an abundance of hard work and resilience were able to pay for school with a part time commitment?
In 1980 the minimum wage in our nation was $3.10. However, the cost for four years of university study (plus room and board) was $64,572. In 2015 Minimum wage was $7.25 on average and the average cost of tuition (plus room and board) is $175,684 for four years. The average work week hours logged per capita for a part time job is 30 hours. In 1980, if you worked thirty hours a week for your 8 semesters of college (15 weeks a semester) you would make about $11,160, which is about 17% of total tuition. However in 2015 with the same formula you would make $26,000. This is only about 14.5% percent of total tuition.
This difference may not seem drastic, but the rate of inflation is rising faster than employee salary can pace. With college becoming such an important nexus between today’s work force and the current generation many people have to choose between whether to suffer uneducated or to suffer constantly in the unremitting circle of getting an education to get paid, to pay off the education people took out loans to pay for because they felt they needed to make more money to change the world.
This alone is astonishing, but once you calculate for interest rates in today’s world it almost seems as though college should be formally recognized as a debt collection monopoly.