Higher learning institutions cost more than ever before. The importance of higher learning can however not be understated. For this reason, the government saw the need to come in and subsidize the cost through the issuance of grants. Currently, the government no longer offers these aids as they have transitioned to student loans. The rising college costs discourage many parents who may start wondering if investing in higher education is valid. The annual cost of a private college is so exorbitant that it may even go beyond the annual salary that a graduate receives in their initial employment years (Keengwe, 2014). The ever-rising cost of higher education is no longer an issue that is debated on by the education fraternity alone, but other stakeholders as well including parents and politicians alike.
Current Issues, Trends, Dilemmas, and Challenges
Over the years, the cost of education has been experiencing annual rises that have surpassed the average rates of inflation. Since 1985, the cost has increased by more than 538%. Effectively, this trend indicates that education costs more than 4.5 times what it used to cost three decades ago (Thelin, 2013). This situation points to a worrying trend, mainly because it is an indicator of the burgeoning student debt rates. The average cost of learning for all institutions in America from 1981-1982 was $3,489, and the figure rose to $19,339 from 2011-2012. For 4-year institutions, the cost increased from $3,951 to $23,066 within the same time frame. 2-year institutions remain to be the most economical among the higher learning places, and their average cost increased from a price of $2,476 to $9,308 (Thelin, 2013). The rising trend has always been the norm.
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The rising cost of higher learning can be attributed to various factors. First and foremost, it is because of the supply and demand. Due to the artificially inflated demand, the supply has also skyrocketed. The artificially inflated demand stems from the fact that student loans are readily available and colleges have had great expectations that more children now have the chance to attend a college; expectations that have been present since the past half-century. After the WWII, demand for higher learning recorded its first high, and it has been rising to date. The government saw the need to help institutions of higher learning to cope with the new trend by providing the much-needed aid which helped in funding the construction of new buildings, recruitment of talent as well as the creation of new programs. The introduction of the GI Bill of Rights enabled the enrollment of 8 million veterans to colleges after 1944 and later helped the civilian middle class as well in later years. In 1958, the National Defense Student Loan which later became the Federal Perkins Loan Program was also introduced, providing greater incentive for the rising demand due to its facilitation for the affordable college education. However, by 1970, the government could no longer sustain the increasing costs of education and colleges had to rely on tuition and fees making it very expensive for students (Lazerson, 2010).
According to Thelin (2013), the other reason for the increasing costs of colleges is the increasing sticker prices for universities owing to the rising student loan debts. This makes it expensive for students to afford to pay for higher education. Many students will thus require the support of scholarships to pay. As more and more students receive scholarships, the cost of education rises for those students that have not been lucky enough to get the scholarships. The availability of classes also contributes to the rising costs as students are enabled to complete their courses within shorter time frames.
Comparisons, Analogies, and Examples
The rising cost of education is an issue of great concern to all the stakeholders involved as it surpasses the increasing costs of other goods. The existence of inflation means that the costs of all goods have been rising and thus the increasing cost of higher learning should not come as a surprise. However, the uniqueness of higher learning cost is that it surpasses the general rise in inflation. Over the past three decades, the consumer price index has increased by 121% while the cost of higher learning has increased by more than 538% (Hemelt & Marcotte, 2011). This shows that inflation alone does not explain the rising cost of education but other factors as well as explained above namely: the increasing demand, the sticker price, scholarships and availability of classes (Hemelt & Marcotte, 2011).
Keengwe (2014) adds that a comparison with other essential goods also indicates just how the rising cost of higher education is alarming. The rising cost of health care is another issue that has brought about much debate. It is becoming lesser and lesser affordable for a common American citizen to pay for a comprehensive health care service making it an issue for great concern. However, the rising cost of healthcare cannot match what has been happening in higher education over the past years. The cost of health care over the same time frame has increased by more than 286% as compared to the more than 538% increase for higher learning. The American States have continued to decrease their annual budgets for higher learning, prompting colleges to increase tuition fees even higher. According to Trombley (2003), in 2003, sixteen States increased their costs by more than 10%. Tuition and mandatory fee charges in four-year public institutions increased for all the States in America. Massachusetts registered the highest rise of 24%, followed by Missouri and Texas at 20%, 19% for North Carolina and 17% for Ohio. Community college tuition and mandatory fees also increased for all States except for California and Maine. 10 States increased these fees by more than 10%. State investment in student grant aid increased in fourteen States by more than 10% but the same decreased for 17 States in 2002, which meant that institutions had to raise fees to cater for the deficit.
Conclusion
The cost of higher learning has always been increasing making it very expensive for students. A comparison with the general price index indicates that inflation alone is not responsible for the rise as it is more than the consumer price index. After the WWII the government provided aid to these institutions to cope up with the rising demand but by 1970 such grants stopped forcing colleges to depend more and more solely on tuition fees. Aside from the increasing demand, factors leading to the burgeoning costs include the sticker price, scholarships, availability of more classes and of course the withdrawn government support.
References
Hemelt, S.W. & Marcotte, D.E. (2011). The Impact of Tuition Increases on Enrollment at Public Colleges and Universities. The Journal of Educational Evaluation and Policy Analysis, 33 (4), 435-257. doi: 10.3102/0162373711415261
Keengwe, J., Schnellert, G. L., Kungu, K., & IGI Global. (2014). Cross-cultural online learning in higher education and corporate training (6th ed.). IGI Global
Lazerson, M. (2010). Higher Education and the American Dream (6th ed.). Central European University Press.
Thelin, J. R. (2013). The rising costs of higher education: A reference handbook (6th ed.). ABC-CLIO.
Trombley, W. (2003). The Rising Price of Higher Education. College Affordability in Jeopardy: A Special Supplement to National Crosstalk (Winter 2003). Retrieved from http://www.highereducation.org/reports/affordability_supplement/affordability_1.shtml
