The Financial Crisis of College

Almost everyone has college as part of their life plans. Whether they want to become a doctor, an accountant, or a teacher, college has become an integral part of achieving dreams all over the world.

But what happens when you can’t financially afford to achieve those dreams?

This is the dilemma that millions of students face every year. As college prices inflate, fewer and fewer students can afford the hefty tuition. Colleges require students to pay an average household’s almost full year salary for four years of learning. If colleges want to continue giving students the education they need to achieve their dreams, they need to start focusing on the effects their increased prices have on the general public.

Numerous studies confirmed how much college prices have skyrocketed, and millions of people are in debt because of these tuition prices. According to Microsoft News, Gen X (people born around the years 1965-1979) paid around $39,780 for a 4-year college. Since then, the price has more than doubled, with Gen Z (1997-2011) paying $90,875.

However, high prices aren’t just a problem for the students. Parents also face this burden. “According to data from The College Board…[t]hat increase is a top concern for parents. [And] according to a recent NBC News Challenge Success survey, 56% of parents cite tuition costs and financial aid as a top concern in their child’s school choice.

Many people, if they do go to college, have to take student loans, which they end up repaying for years after graduation. According to a study by NASDAQ, “reliance on student loans has been increasing since their creation in the 1960s. Today, college graduates who borrow can expect to leave school with close to $30,000 in student loan debt, according to The Institute for College Access and Success. And while working a part-time job may help reduce that burden, it’s unlikely — if not impossible — that it would entirely eliminate it.”

This is detrimental to the students’ financial well-being in years to come. People who had taken loans for college more than a decade ago are still paying off their installments for their student loans. As a society, this is unacceptable that we have to carry the burden of having to pay installments for such a long period.

And student debt payoff isn’t the only problem. Increased prices have increased student dropouts, prompting many people to reconsider their future. One example is a student from Stafford, Texas that NPR news interviewed. “As the pandemic eroded the final moments of his senior year, the...student began to second-guess that plan.” “‘We had no money for it,’ he says, ‘and I'm not trying to go into debt and pay that for the rest of my life.’ He wondered if college in 2020 was "really worth it." So he postponed and instead got a job...so he could start saving up.” This is only one example of what millions of students do annually when thinking about college.

Economic inflation may have something to do with the tuition increase. After all, colleges are businesses too. They seek to make money and make a profit. In fact, according to data from the Washington Post, “research universities invest significant resources in research doctorate degrees in addition to undergraduate and masters…Most schools spend more[,] especially research institutions. Only community colleges are spending less per student than they were in 2000.” While a rise in tuition costs over the years is understandable, such dramatic ones feel like universities are focusing more on profit and making that their central goal. After all, the average American household income increase over the past ten years is only 12.5%, but the college prices increased by 3-4% on average annually.

This plan might be very lucrative for universities, yet it’s terrible for students. Unfortunately, with money being the center of the world, that point can seem very forgettable.

Colleges could contribute a lot more by making it easier to afford college education and make it accessible to more people. And if we as a society want the dream to have affordable education to come true, we need to start being more vocal about this issue. It’s often overlooked in favor of other problems our society faces. But it is time to change. Millions are throwing away their dreams because their money isn’t enough. Tuition costs have increased faster, too fast for American families to catch up on. University is fundamentally for education, not profit.