Abacus: A Time of Reckoning for Universities
Sebastian P.
One of the defining differences between the United States and most other developed countries in the world pertains to post-secondary schooling: increasingly high tuition prices in America have forced many families into making difficult decisions surrounding college attendance. As highly regarded as many elite universities are in the United States, the accelerating effect of price increases has made college enrollment a luxury for some students.
The total costs that come with a college education, including tuition, fees, and room and board, have risen, which is well above the rate of inflation in recent decades. From the 1985-86 academic year through the 2017-18 calendar year, four-year private and public college institutions' average costs rose nearly 118% even after adjusting for inflation. Prices at private and for-profit schools, which include popular destinations for students aiming for a top-tier education, such as the Ivy League, did not fare much better: average costs at such institutions increased more than 105% over the same period.
The situation leaves a conundrum for many graduating high school students from middle-class backgrounds; choosing whether to depart to college or consider other alternatives has never seemed more significant. This predicament is especially true when bearing in mind the compounding interest on student loans representing a substantial burden for those who go into debt to continue their education.
But with the emergence of Covid-19 and the ensuing restrictions on in-person classes, the presence of online courses has led many to question the actual value of four-year bachelor's degrees.
Even before the pandemic began, a growing number of people were enrolling in online courses. The option presents many advantages compared to in-person coursework, including potentially inexpensive prices and better flexibility for people handling non-academic related matters.
But, depending on the target audience, online classes could serve as an inconvenience. Some find it harder to concentrate on online coursework compared to learning in person. Moreover, online courses do not offer the tangibles that in-person classes do, such as collaborating closely with fellow students and forming personal relationships with friends and instructors.
The growing utilization of online courses in light of the pandemic has forced many families to truly contemplate the value they're receiving from the American education system. Like many facets of society and the economy, a family's situation tends to differ by class level.
Obviously, people from wealthy backgrounds can pay high college prices with relative ease, but people from the working class requires greater attention.
Small private schools that receive little outside funding can provide only so much aid to low-income students. Still, such schools have been the center of controversy for awarding scholarships to wealthier individuals and student-athletes as an incentive to attend. Indeed, Stephen Burd, a senior policy analyst at the think tank New America, found that poor people disproportionately fund private nonprofit colleges. 72% of such schools charged an average net price of more than $15,000 to low-income students during the 2013-14 academic year, and 30% charged an excess of $20,000 to people from similar class ranks.
But it is not only the poorest members of society who struggle with college-related financial problems; members of the middle-class often find themselves in financial worries. Among these mid-income level earners, there are those that cannot afford to pay entirely out-of-pocket expenses for elite schools but not poor enough to attain financial aid targeted towards lower-class people, college decision-making is far from easy.
The tricky situation has contributed to increases in borrowing among both students and parents. Since 1990, the aggregate number of student loans among undergraduate students has risen 60% and has increased three-fold for parents. The rise in borrowing among students and parents has contributed to the $1.6 trillion worth of student loan debt in the US in 2020.
The student loan crisis has grown so severe that, in some cases, young people have enlisted in the military for financial incentive: fully paid for four-year programs with the army served as bigger motivation for young military entrants in 2019 than Middle East wars did. Other military resources that aid individuals with student loans represents additional reason for young people to join the Armed Forces.
The increasing exclusiveness to top private schools, in addition to progressively expensive public colleges, has prompted many households to consider all possible alternatives to four-year degrees. Amid a pandemic-induced altered learning environment, one in which many students have criticized the adjusted teaching format for failing to adequately provide proper instruction, some are questioning the actual return on investment from college in general.
Indeed, deciding whether to attend four-year schools is not as simple as some people from older generations might believe. In accounting for costs, the unpopular opinion surrounding enrollment is that students should only attend if they choose to specialize in a study from a select group of majors that could lead to high-earning careers.
It shouldn't come as a surprise to most that majors related to science, technology, math, and engineering (collectively known as STEM) are associated with low levels of unemployment and high entry-level salaries compared to other fields. Positions in categories related to engineering, computer science, and math and sciences were the only ones projected to have initial starting salaries over $60,000 in 2018 and 2019.
Securing a position with a high salary is vital for those hoping to pay off large sums of student loan debt, which can increase quickly in the total amount due to compounding interest.
On the other hand, trade schools offer an excellent opportunity for young people interested in securing a technical job but don't want to participate in the typical college route.
With many programs lasting only two years and providing students practical skills at comparatively low cost, trade schools offer an excellent way for individuals to acquire expertise and experiences they normally won't receive on a traditional college campus.
According to the jobs search engine Indeed, some of the best paying trade jobs include plumbers, electricians, practical nurses, and technicians.
While this unorthodox route can offer relative stability, trade programs are not for everyone, as the specialized fields typically target those who enjoy hands-on work.
When a pandemic has impacted all aspects of life, including the way people learn, society should not perceive the act of considering replacements to a typical college education as indolent. Cheaper choices that may come in the form of online school or trade programs can offer great directions for those looking to avoid debt to pay for an education. During a period of recession, one in which securing a full-time job following university graduation is far from a given, young people should consider possibilities that deviate from college.
