The price of a college degree in the United States is at an all-time high. The increases in the cost of tuition have outpaced inflation since 1978[1]. While median household incomes have remained fairly stagnant, students and their families are now paying a higher percentage of their total family budget on tuition[2]. Student debt continues to increase and is now over $1 trillion nationally[3].

The average cost of tuition and fees for the 2014-2015 academic year is $9,139 for in-state, four-year public colleges, up 2.9% from the previous year[4]. At the University of Oregon, the price is $10,287[5]. With inflation during 2014 at 1.6%[6], tuition is almost outpacing inflation 2:1. Students who graduate with a bachelor’s degree from a public university are averaging $29,384 in average student loan debt[7].

Many high school graduates are wondering if they can even afford college and if a college degree is worth the investment. 

The economic downturn of the recession has played a major role in the recent increases in tuition. State spending on higher education per student has decreased 23% nationwide since the recession. In Oregon, it has decreased 37.9%[8]. Some of this is due to the large influx of students who are coming back to college to become more competitive in the job market. Even while states are beginning to replace those cuts, students and their families are now bearing more of the costs through the form of tuition.

There is no question that the ever-increasing tuition costs and amounts of student debt are alarming. There is controversy, however, as to how to address these issues. President Obama has proposed reforms[9] and higher education reform has become a topic in recent presidential debates. While some call for increased federal spending, some argue that large amounts of federal spending enables institutions of higher education to raise tuition engaging in an academic arms race of sorts[10]. Still, the fact remains that those with a bachelor’s degree earn far more than those with just a high school diploma[11]. Experts say it is best not to borrow more in loans than the expected starting salary after graduation[12].

It seems as though tuition increases won’t end anytime soon, so the real question facing students today is, “How will I fund my higher education?”

By: Rian Rasubala

 

Footnotes:

[1] Lorin, Janet. “College Tuition in the U.S. Again Rises Faster Than Inflation.” Bloomberg.com. Bloomberg, 12 Nov. 2014. Web. 19 Oct. 2015. <http://www.bloomberg.com/news/articles/2014-11-13/college-tuition-in-the-u-s-again-rises-faster-than-inflation>.

[2] “Higher Education: State Funding Trends and Policies on Affordability.” United States Government Accountability Office. 1 Dec. 2014. Web. 19 Oct. 2015. <http://www.gao.gov/products/GAO-15-151>.

[3] “Quarterly Report on Household Debt and Credit.” Federal Reserve Bank of New York. 1 Aug. 2015. Web. 19 Oct. 2015. <http://www.newyorkfed.org/householdcredit/2015-q2/data/pdf/HHDC_2015Q2.pdf>.

[4] “Average Published Undergraduate Charges by Sector, 2014-15.” The College Board. Web. 19 Oct. 2015. <http://trends.collegeboard.org/college-pricing/figures-tables/average-published-undergraduate-charges-sector-2014-15>.

[5] “Financial Aid & Scholarships.” University of Oregon. Web. 19 Oct. 2015. <https://financialaid.uoregon.edu/cost_of_attendance>.

[6] “Current US Inflation Rates: 2005-2015.” US Inflation Calculator. Web. 19 Oct. 2015. <http://www.usinflationcalculator.com/inflation/current-inflation-rates/>.

[7] Kantrowitz, Mark. “Debt at Graduation.” Edvisors Network Inc. 7 Jan. 2014. Web. 19 Oct. 2015. <http://www.edvisors.com/ask/student-aid-policy/debt-at-graduation/>.

[8] Mitchell, Michael, Vincent Palacios, and Michael Leachman. “States Are Still Funding Higher Education Below Pre-Recession Levels.” Center on Budget and Policy Priorities. 1 May 2014. Web. 19 Oct. 2015. <http://www.cbpp.org/research/states-are-still-funding-higher-education-below-pre-recession-levels>.

[9] “Higher Education.” The White House. The White House. Web. 19 Oct. 2015. <https://www.whitehouse.gov/issues/education/higher-education>.

[10] Gillen, Andrew. “Introducing Bennett Hypothesis 2.0.” Center for College Affordability and Productivity. 1 Feb. 2012. Web. 18 Oct. 2015. <http://centerforcollegeaffordability.org/uploads/Introducing_Bennett_Hypothesis_2.pdf>.

[11] “Fast Facts: Income of Young Adults.” National Center for Education Statistics. Web. 19 Oct. 2015. <https://nces.ed.gov/fastfacts/display.asp?id=77>.

[12] Kantrowitz, Mark. “Debt at Graduation.” Edvisors Network Inc. 7 Jan. 2014. Web. 19 Oct. 2015. <http://www.edvisors.com/ask/student-aid-policy/debt-at-graduation/>.