ATLANTA, Georgia– College tuition can be the bane of any student’s and parent’s existence; leaving many to wonder how exactly they can pay such an exorbitant amount of money to finance an education that lacks the value it once had years ago.
On top of the massive amount of debt students simply accept when it comes to financing college, there is the sluggish economy that awaits them after graduation which still lacks the growth and dynamism associated with recoveries of years gone by.
The reality of the situation is that the high cost of college tuition is here to stay; with its continual rise far outpacing inflation.
While many middle class and affluent families are feeling the burden of these increased costs, low-income families are increasingly losing access to the educational opportunities that have been available in the past.
Certain states have seen extreme price increases in only a few short years. In Arizona, the price of tuition has increased up to 77 percent within the past five years. College tuition in Georgia and Washington has skyrocketed 75 percent and 70 percent respectively during the same period.
While wealthier families pay a greater overall cost for college, the net price has increased at a slower pace for them as opposed to low-income students. The net price is defined as the total cost of a year of college for a full time student. This calculation includes any possible aid the student will receive.
The aid that has been available to many students in the past has been cut back when many state legislatures reigned in budgets during the Great Recession. This includes essential aid such as Pell Grants.
With cuts in grant money, poorer students are forced to reach deeper into their own pockets to make up the difference. The Miami Herald points out that the net price for those on the lower end of the income spectrum at the University of Florida has increased from $3,188 in 2008-2009 to $7,061 in 2011-2012.
American students aren’t the only ones feeling the pain in their wallets. Foreign students are getting the full brunt of tuition and in some cases their payments help subsidize American students.
The University of Washington is bringing in more foreign students than ever before; most hail from China. The average amount of tuition paid by these foreign students amounts to $28,059 per year.
That amount is close to three times the amount Washington residents pay. As a result of decreased state funding, the tuition payments provided by these foreign students help reduce costs for in-state students, many of whom don’t pay tuition at all.
While this method certainly helps hide costs from Washington residents, it is a double-edged sword; many foreign students end up taking spots that otherwise would have gone to one of their American counterparts.
This has led to anger among Washingtonians who believe their child’s spot at a university should take precedence over students coming from abroad. While much of the increase in tuition can be attributed to decreased state funding, this is only a piece of the overall picture.
Massive administrative expenses paid by universities are passed on to the student. Administrative spending per student has increased 61 percent versus 39 percent in instructional spending per student in just several short years.
Another factor is the competition between universities to hire the most renowned educators and build the largest and most elaborate sports facilities.
But despite all these factors contributing to higher tuition, one fact stands above the rest: people are still willing to pay. In the face of the global recession still impeding job growth and the declining stature of holding a college degree, families are still willing to shell out massive amounts of cash to send their children to college.
There’s no question that one is better off with a degree than without, but until the value of a college degree hits its nadir, expect the tuition trend line to move ever upward.
Sources: Miami Herald, NPR, Forbes, US News, The New York Times
Photo: Inside Philanthropy