College Tuition Expenses

In the United States, getting an education after high school is becoming a luxury as college tuition costs are outpacing inflation. Colleges and Universities in America are more expensive than in any other country in the world. For many, getting accepted by his or her school of choice is not the first priority. Students and their parents are more focused on finding the money to pay for tuition (and living expenses if the school is far from home). According to a recent study made by the Advisory Committee of the United States Senate, between 2001 and 2010, an estimated 2 million American students who are qualified for college will not go because they cannot afford to. The Speaker of the House of Representatives has proposed reform of the financial aid system during Congress’s first 100 hours. This may be the first step in helping deprived Americans get the chances they need to become successful.

Although student loans are somewhat helpful for many students, they often come at a significant cost. According to a poll taken by AllianceBernstein Investments, in 2006 44% of adults who have student loan debts have delayed buying a house, 28% have postponed becoming parents, 27% have not had medical or dental procedures done because of the cost, and 18% have avoided getting married. In addition, taking on a student loan can put him or her behind in retirement investments by as much as a million of dollars.

Senator Barbara A. Mikulski stated that “Belief in the American dream is shrinking.” People can no longer feel that they are given equal opportunities. A college degree is especially important for those in low-income families if they are to break they cycle of poverty, and it is becoming harder and harder to get. “Having a high school diploma is not enough to support a family,” said David Sullivan, a Chicago-based financial planner with MML Investor Services in Massachusetts. If we fail to make higher education available to all Americans, then we are accepting a society divided into two distinct classes. Obviously, this is not a good thing for those in the lower tier. In the long run, this would be an unattractive system for those in the upper tier as well, as they are forced to choose between expensive social welfare programs and an increase in social unrest. It is common knowledge that a college degree can increase an individual’s lifetime earnings by several hundred thousand dollars. That income represents an increase in productivity in the overall economy, to the benefit of both rich and poor.