Tuition Costs Essay Example

Perkins loans, and work-study programs offer various options for accessing college at different expenses (Fortin). Moreover, the public or private nature of an institution affects both the supply and demand factors.

Fortin stated that private institutions limit admission through high tuition fees and strict academic requirements, while public institutions combine both factors. However, community and technical colleges have more lenient policies. College Board's "Trends in College Pricing - 2007" report shows that for students attending private four-year colleges, nearly two-thirds of the budget goes towards tuition and fees; whereas for those enrolled in public two-year colleges, this figure drops to less than 20%. In-state public four-year college students spend just over one-third of their budget on tuition and fees. The report also indicates an average increase of 4.2% in published tuition and fees at public two-year colleges in 2007-2008 compared to the previous year with a published cost of $2,361 on average. Meanwhile, during the same period, in-state students who attend public four-year universities or colleges faced an average published cost of $6,185—an increase of $381 (6%).

In the year 2006-2007, there was a 6% increase in the average cost of tuition, fees, room and board. This led to an average cost of $13,589 - a rise of 5.9% from the previous year. Students who attend public four-year colleges and universities outside their state are now facing an average published tuition and fee cost of $16,640 for the academic year 2007-2008. This is an increase of $862 (5.2%) from the prior year.

Private four-year colleges and universities experienced a 6.5% increase in average tuition and fees from the previous year, resulting in a rise of $1,404 to reach

an average of $23,712 during the academic year of 2007-2008. Additionally, total charges for this same period rose by 5.4% to reach $24,044.

From 2007-2008, for-profit institutions experienced a rise in published tuition and fees by $703 (6.3%), bringing the average cost to $12,089. The total charges including room and board currently stand at an average of $32,307 with a 5.9% increase from the previous year.

In the report entitled "Trends in College Price - 2007", it was found that college prices have risen by 2% from 2006-2007. The net price, or the amount students pay after receiving grants and tax benefits, varies depending on the type of institution attended. Private four-year institutions typically offer around $9,300 in aids to full-time students while public four-year institutions provide $3,600 and public two-year colleges give $2,040. Although net prices for public four-year colleges decreased from 1997-98 to 2000-01, they have significantly increased since then. Net prices for public two-year colleges also experienced a decrease until 2002-03 but are now seeing an increase. Over the course of a decade from 1997-98 to 2007-08, private four-year colleges and universities saw an escalation in both published tuition fees and net tuition fees.During the period between 1992-93 and 2003-04, there was an increase in the net price as a percentage of family income for lower-middle-income students across all sectors except public two-year colleges. The published price increased by $5,889 and there was a net price rise of approximately $3,600 (in 2007 dollars). In the same academic year, low-income families with full-time students at public two-year and four-year colleges spent a smaller proportion of their income on net tuition and fees compared to 1992-93.

However, attending private nonprofit institutions remained steady while it rose at for-profit institutions.

When it comes to the desire for higher education, students contemplate both their own fulfillment and the expenses and advantages of obtaining a degree from a college or university. Meanwhile, establishments heavily depend on funding as their primary source of income, causing an effect on the availability of supply (Fortin). Since acquiring higher education is crucial in modern society, it is necessary to examine diverse financing alternatives to deal with rising tuition fees. An interesting example of an inventive financing solution worth mentioning is retired baseball player Don Larsen's decision to sell his memorabilia in order to finance his grandchildren's college education.

Hicky states that college education expenses are placing a notable financial burden on students, families, local employers, and educational institutions. Consequently, many individuals resort to taking out substantial student loans and credit card debt to meet the escalating costs. The statistics indicate that over half of these loans (56%) exceed the 40% threshold initially established for federal and state grants intended for college students. This suggests that families are accumulating more debt in their efforts to finance higher education.

Hicky notes that a growing number of students are turning to credit cards to cover their school expenses, despite the higher interest rates compared to low rate loans. College fees have become a significant factor in determining which institution students will attend, as "The College Cost Crunch" article shows. As a result, some choose community colleges for their first two years before transferring to their preferred school or opt for public institutions over private ones they desire. Delaying college education by one year is

also an option some prospective students consider so they can find the best college and figure out how to pay for it. Some students fund their college expenses by joining reserves or armed forces through military service while postponing studies.

The "College Cost Crunch" report highlights the negative impact of high college expenses on students' academic decisions and post-graduation plans. Students may be forced to drop out due to unaffordable debt, even after receiving grant aid, student loans, and credit cards. This can leave them saddled with overwhelming loan and credit card obligations. As a result, they may delay major purchases such as a car or a home.

Delaying marriage and starting a family could be a result of high student loans. Universities and colleges are impacted by the high cost of college which leads to constant competition for the best ranking and higher credentials for faculty and the top students. This competition results in institutions increasing tuition cost, reallocating funds, paying higher faculty salaries, building modern facilities, introducing new technology, improving laboratories and library materials, enhancing career counseling, as well as improving job placement services (Lang). Financial aid is one of the biggest expenditures for private institutions during the last decade which has not kept up with the rising inflation of college tuition.

The text highlights two charts that depict the impact of decreased government appropriations and increased tuition revenue at Cornell University. It is evident that despite these measures, the cost of education remains unaddressed. Chart 1: Government Appropriation at Cornell University Chart 2: University Revenue at Cornell University. This trend is observed in private universities which have resorted to charging full fees for lower-income

students to fill the funding gaps. Similarly, public institutions have also raised tuition fees as state funding has decreased (Lang). Consequently, the rise in tuition costs affects the local employers as well.

Although many local employers are offering financial aid to their staff, increasing expenses have forced some companies to set an annual cap on funding per employee. Many of these employers have swapped the need for college education with on-the-job training or experience, and have changed their recruitment practices. Previously, these companies only considered applicants from Ivy League colleges, but some are now hiring from nearby community colleges.

As companies in local communities compete for top talent from leading colleges, recruiting new college hires has become increasingly important (Lang). Despite the high cost of education, many still aspire to obtain a college degree due to its numerous opportunities. Those affected by the cost of education can turn to the Bible's advice to "Ask and it will be given to you; seek and you will find; knock and the door will be opened to you" (Matthew 7:7) for guidance. Students, educational institutions, and employers should pray for increased funding to support higher education and advance educational institutions while also praying for local employers to provide job opportunities for new college hires while supporting current employees' educational needs. Most importantly, they should remember that with God nothing is impossible (Kidder).

The impact of tuition costs on higher education is significant, affecting students, institutions, and employers both positively and negatively. Unfortunately, rising tuition expenses have led to negative consequences such as financial limitations preventing students from attending their preferred school. This is partly due to post-graduation debt levels

exceeding $100,000 as private loans are used to cover the cost of tuition.

The insufficiency of federal loan programs in meeting students' needs due to inflation and increasing tuition fees has led to a surge in private loans. Consequently, many students are unable to pursue higher education and abandon their aspirations. While four-year colleges offer long-term benefits, affordable options such as technical trades and community colleges exist. Nonetheless, the closure of several institutions is underway due to declining enrollment.

The reason for this is the escalating costs in colleges which in turn prevents some colleges from being able to pay their faculty salaries and generate required revenue from students. Employers may face several problems such as not finding the required skill set in potential employees, leading them to provide additional in-house training which contributes towards operational costs. It also makes employers increase their tuition reimbursement policy or completely eliminate it due to rising costs. This can add to company budgets and may interfere with cost of living increases. Similarly, if the plan is removed it could deter employees from pursuing higher education (Lang).

Advantages: • As more students opt for costly postgraduate studies, their chances of securing better employment opportunities increase. • To retain skilled faculty and staff, salaries are benchmarked against those provided by comparable establishments to ensure competitiveness. This tactic enables the institution to maintain an ideal student-to-faculty ratio.

Universities need to exceed student expectations with exceptional facilities like food courts, classrooms, residence halls, and fitness centers to maintain high rankings. A wider range of students can be reached through expanded marketing and recruitment strategies. Investing in modern library and computer science technology is crucial. Providing

better career guidance and job placement services can also attract top-tier students.

According to Lang, employers can save on operational costs by obtaining the necessary skill sets from outside sources instead of conducting extensive in-house training. Additionally, while rising tuition costs keep institutions competitive, there are both advantages and disadvantages to this approach. Ultimately, individuals should make spiritually sound choices that align with God's will (Coleman). In conclusion, higher education carries a cost that should be considered carefully.

The competitiveness of the current environment and economy makes a college education more crucial than ever for success, involving the student, educational institutions, and local employers. It has been established that the demand side for students is determined by tuition, while the supply side for educational institutions is determined by appropriations (Fortin). Elevated tuition costs impact various aspects of a student’s life, resulting in significant student liability that shapes career and life decisions beyond graduation (Fortin).

Regarding the perspective of learning institutions, there exists a significant demand created by individuals. However, the government has failed to meet its obligations. Specifically, Congress has amplified subsidies for student loans while reducing aid for eligible students based on financial need. Ultimately, this situation has led to a hike in tuition costs (Fortin, Hickey). Alternatively, local employers have encountered issues with promotion from within their companies. This occurs because numerous employees lack a college degree. Although an employer may wish to provide support through tuition reimbursement, the increasing costs have rendered such a program unsuccessful regarding competitive advantage.

According to Fortin, rising living expenses and benefit costs are making it difficult for companies to compete. In response, recommendations have been made to help manage

increasing tuition fees for students, educational institutions and local employers. To achieve this goal, families and students must take responsibility in several ways:

• Contributing their fair share of expenses.
• Becoming familiar with policymakers at both state and federal levels.

Additionally, Educational Institutions can play a significant role in controlling tuition fees by:

• Lobbying government leaders on the state and federal levels for appropriate policies.
• Reducing interest rates to minimize student debt.

One way to improve financial operations is by enhancing institutional cost control efforts instead of accepting the status quo. In addition, local employers can contribute to the reduction of tuition costs by collaborating with boards to increase tuition reimbursement and advocating for lower interest rates with local and federal officials. It is evident that the United States offers an exceptional higher education system and college degrees are necessary for financial prosperity. Nevertheless, it is crucial for us as individuals to voice our concerns regarding the consequences of escalating tuition costs on students, educational institutions, and local employers.

It is important to involve God in the decision-making process when it comes to choosing a career path, as everyone has a unique divine purpose. As "The College Cost Crunch" emphasizes, higher education should be accessible to all based on merit and effort, not financial means. (Coleman, Quaford. "How to Make Wise Career Choices." Gospel Today Mar.)

In April 2008, Nicole M. Fortin wrote an article titled "Rising Tuition and Supply Constraints: Explaining Canada Versus Differences in University Enrollment Rates," which was published in pages 59-62.

The University of British Columbia was attended on March 4, 2005 and visited again on March 25, 2008.

Jennifer G. Hickey wrote an article

about which includes .The following article titled "Breaking the Bank to Go to College" was published on February 1, 2002 and can be accessed via the URL http://findarticles.com/p/articles/mi_m1571/is_33_18/ai_91475054/print. This information was retrieved on April 5, 2008.According to Susan Lang, the author of "Impossible Prayers" in the March-April 2008 issue of Pray! magazine is Virelle Kidder. The citation retains .

Cornell University published an article on November 8th, 2006 titled "The Increase in Tuition due to Competition for Top Students, Faculty, and Facilities Along With Rankings." This article was accessed on March 13th, 2008.

In November 2006, Cornell University's news website released an article discussing the expensive cost of tuition. The URL for this story can be found at "http://www.news.cornell.edu/stories/Nov06/tuition.so.much."The Senate Health, Education, Labor and Pensions Committee Democratic and Senate Democratic Policy Committee published a report in June 2006 titled "The College Cost Crunch: a State-by-State Analysis of Rising Tuition and Student Staff Debt" within sl.html> tags.On April 5, 2008, a document titled "college.pdf" was accessed from the website of the Democratic Party in the Senate, available at "http://democrats.senate.gov/dpc/docs/college.pdf". This information was presented within .The following HTML-parsed text provides information about college prices for the years 2007 to 2008. The reference is titled "Trends in College Pricing - 2007" and can be accessed via http://www.collegeboard.com.The HTML tag

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