How Much Is Your Education Worth?
College has become more and more expensive as getting a degree has become more and more inelastic. We are told since we were young that if we don't go to school then we won't be able to find a job. Even to adjust for inflation, both private and public universities have had a spike in their costs for tuition over the last thirty years.
According to the College Board, for private non-profit four year universities, the average tuition for the 1987-88 school year, accounting for inflation, was $15,160. The average price for the same type of institution in the 2017-18 school year was $34,740. Even public four year universities have had their tuition costs change, though not as drastically. In the 1987-88 school year, public universities were about $3,190 on average and in the 2017-18 school year were about $9, 970.
California as of 2016 had about $120 billion of student debt owed by the people that live in the state. In the same year, the state with the highest average of student loans for residents was New Hampshire with an average of $36,367 per student. The fact that student loans has become an accepted part of the education experience has made it so that some people don’t go to school at all.
Is there anything that the government or universities could or should do? Why would universities change their prices if people are going to pay their tuition anyway? Is there anything that students can do to try to either change the cost it takes to go to school or otherwise be able to make it through college without debt?
I like your connection to the elasticity of a college education! You're right, it is certainly inelastic because it feels like a social pressure and something necessary to success. I think it is slowly becoming more okay to not go to college or to seek independent education as a result of the preachings of successful individuals who have successfully avoided college.
ReplyDeleteVery interesting post! This topic is very relevant to us as we are all seniors preparing to go to college next year. There’s no doubt that education definitely has an important place in society as it not only helps us get jobs, but helps us to be more productive at our jobs, and is correlated with higher levels of health and engagement according to an article written by the New York Times. In addition, studies have shown that cutting costs only benefits us as a society in the short-term. With a degree, one has return on that investment and so is able to make that money back and help the economy thrive. So, while we should find a way to make college more affordable, it is something that can’t just be made completely free or low-priced as that would have negative effects on the future economy.
ReplyDeleteSource: https://www.nytimes.com/2015/09/13/magazine/is-college-tuition-too-high.html
It's a great feeling to make the connection between microeconomics and college, two important and prevalent parts of my life right now. I totally agree that it's incredibly unfair for us and an incredibly smart move for colleges to increase the tuition over the past couple of years. What really annoys me, though, is the complete monopolization of The College Board over the high school testing industry. The College Board feeds on our fear of not getting into college in order to take control of our academic lives. Especially when so many colleges require or "strongly recommend" taking SATs and subject tests, it's nearly impossible to get into college without paying The College Board. In addition, prices continue to skyrocket to take a test every year. Just this year, I realized that AP test prices have gone up by over $20 since last year, which is crazy to think about. Where will it end?
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