The High Cost of Higher Education

By Silja Kallenbach

College education generally pays off. People with an Associate’s degree earn, on the average, almost twice as much as high school graduates: $33,000 versus $18,900. Yet, every low-income person planning to go to college has to balance the possibility of a greater salary in the future with the present cost of a college education. This cost includes lost earnings when people reduce their work hours from full-time to part-time as well as tuition, fees, and books—all of which have been rising at an alarming rate. Access to higher education is an issue in the 2004 elections.

The cost of going to college is taking an increasingly bigger chunk of adults’ income. When the choice comes down to rent and food for the family versus books and tuition for education, college takes the back seat. A Boston Globe article reports that, “Large numbers of lower-income students are being priced out of college. Those who do attend often take on major student loan debt or work long hours, compromising their academic performance.” Only 42 percent of adults who enroll in two-year colleges complete their Associate’s degrees. Although money is not the only reason, the cost of college is part of the problem that causes people to drop out. Many working adults go to school part-time. If they take less than six credits worth of courses they are ineligible for most types of financial aid.

In 2003, the national annual average tuition and fees at community colleges was $1,560 and $4,694 at four-year public colleges and universities. Tuition and fees in four-year colleges have increased 202 percent since 1981. That’s three times as much as the increase in the median family income.
At an average of $19,710 a year for tuition and fees, private higher education is hardly within most low-income people’s reach without huge loans and scholarships. Many students graduating from college, especially private ones, face decades of debt after graduation. This cuts into their ability to buy a home or save for their own children’s higher education.

Voters concerned about the rising cost of college education should find out what, if any, solutions the presidential candidates are proposing to this situation. A January 2004 review of the major presidential candidates’ Web sites turned up a range of plans for making college more affordable. On the Republican side, President Bush’s plan for strengthening access to post-secondary education includes a $33 million increase in Pell Grants (federal student aid) to low-income students “who complete rigorous coursework in high school.” On the Democratic side, one proposal, based on family income, would guarantee $10,000 per year for college or high skills training for any student who completes high school. Another candidate’s proposal is to give $6,000 per year for the first two years of full-time college to anyone whose family income is below $100,000. Yet another candidate wants to give more money to the states to help reduce the cost of public higher education, and to pay for tuition in exchange for two years of community service. (To see what the candidates propose, visit their Web sites.)

Ultimately, the question comes down to how public higher education should be funded. How much should be paid by state and federal governments with taxpayers’ dollars versus by individual taxpayers directly? The first choice can level the playing field since state and federal governments can tax people with higher incomes more than people with lower incomes. The second choice places a greater burden on people with lower incomes and favors people who have more money. What do you think?

Silja Kallenbach is the coordinator of the New England Literacy Resource Center at World Education in Boston, MA.

DISCUSSION QUESTIONS

1. Should all high school graduates be entitled to free or low cost college education regardless of the ability to pay? Why?
2. What are the pros and cons of each candidate’s proposals for funding higher education?
3. What is your proposal for how public higher education should be financed?

MATH QUESTIONS

1. How much more do people with Associate’s degree earn, on the average, than high school graduates? How would you spend the money if you earned that much more?
2. Sally brings home $20,000 a year. Her yearly tuition is $4,000. What percentage of her take-home income is the tuition?
3. The University of Massachusetts tuition and fees were $5,750 for in-state students in 2003. They increased 30 percent from 2002 to 2003. What were this university’s tuition and fees in 2002?

Copyright© 2002 World Education, All Rights Reserved. | Last updated: 5/10/04