College... The Path to Big Bucks or Big Debt?

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Wildcats Story

While doing all my research and using many secondary sources, I realized that the issue of student loans, and the struggle to pay for college is a very prevalent issue that students I surround myself with every day are struggling with. I decided to take matters into my own hands and interview a peer of mine to see how they feel about the topic and to see if they have any personal relation to the issue. My interview subject is named Macey Clark, she is from Arvada, Colorado and came to the U of A seeking a good education and warmer weather.

When I began my interview with ms. Clark, I started off by asking her what her opinion on college is so far, and how she has been enjoying the experience. Clark mentions how she is happy with her major and very fond of the majority of her classes she is currently enrolled in. Clark also mentioned how she feels an extra level of pressure weighing her down because of the financial obligations put on her family when she decided to attend the U of A. This is a statement I was able to personally relate to and I am sure many out of state students attending the U of A feel similar to Clark and I. When considering college choices, the top con on my pros and cons list for the U of A was cost and relative to the price, the lack of scholarship given. I faced many conflicts when it came to affording college. My family is separated but both my mother and father make a large enough income to the extent where I do not receive any financial aid for colleges or from FAFSA. My father has vowed to give me a certain amount of money for college but unfortunately that amount does not cover my bachelor's degree from the U of A. I felt passionate about this school so my mom and I worked out an agreement and we are able to cover the remaining cost.

As for ms. Clark, she was able to receive money from FAFSA. I asked her how her experience is going so far with student loans, given the reputation of high interest rates and the struggle to pay all the money back. “As of right now, the loans are not my priority. As long as the issue of money is on my mind I will not perform as well academically as I am hoping for. I am going to worry about the money once I earn my degree.” Says Clark. I felt like this was a very mature and honest way of answering my question. I agree with Clark’s statement about focusing on academics and trying to not let the pressure of money and loans distract her from her priority.

I left my interview with ms. Clark very pleased. I was hoping to report information received from my interview that was relevant to my topic and would keep my same stance and that is exactly what happened. After conducting my research, primary and secondary, I have come to a conclusion. College is very expensive, yes there are many ways to lower the cost, and some people can afford it without breaking a sweat, but majority of people can not. If I were you, I would try my best to achieve a Bachelors degree from a proficient four year university. I personally think that obtaining a good education, even if that means going into debt, will increase your chances of setting your life up to be successful and happy. I hope you all have enjoyed reading my blogs and I hope I helped answer any unknowns you may have had about United States college costs and student loans.

Clark, Macey. Personal Interview. November 9, 2019

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Breakdown the Costs

“How Much Does it Cost to Study in the US?” written by Laura Bridgestock was an article that I felt needed to be included in this blog. The cost of United States college tuition has increased immensely over the past years, but by how much exactly? The cost of attending a US college has become daunting but it remains the most popular destination for international students.

HSBC did a report in 2018 about the value of education, the US ranked among the top choices for international parents who were considering sending their students abroad. In cases like these, popularity seems to go hand in hand with cost value. Colleges in the US for non resident students average out at the course of their degree costing just under 1000,000 US dollars. This number may seem outrageously high but yet it is the reality, but not for all United States colleges. The US has a system of different tiered levels of education. Top tier universities in the US, usually private non-profit universities, considering tuition, fees, and cost of living, the cost of attending per year adds up to around 66,000 US dollars. A student attending such a college would face a degree worth $264,000, that is if they graduate on time in 4 quick years. Those looking for a lower tuition would consider public universities. The cost of public universities in the US is split two ways, based on residency. For those who live in the state, they get tuition at a discounted rate and those out of state pay to attend and receive identical education for a higher price. “According to College Board, published tuition fees for 2018/19 at state colleges are an average of US$10,230 for state residents, and $26,290 for everyone else. This compares to an average of $35,830 at private non-profit colleges. The cheapest options of all, however, are public-sector two-year colleges – also known as community, technical or city colleges – where average fees for 2018/19 are just $3,660.” Two year colleges are a proficient way to begin your college level education at a lower price and only pay for the second two years at a larger, more expensive, four year university. Bachelor degrees are unattainable at two-year colleges but the credits received from the college are transferable and set you up to finish your education at a four year university.

In recent years, students have been able to calculate the cost of individual universities and get a more accurate representation on if the price of the college is reasonable for their personal situation. In fact, all US universities are legally required to have a net price calculator available for the public on their websites. These calculators give students a more accurate view of the bill they will be facing based on their individual circumstances such as choice of major and family income relief. Sources like this are very proficient ways to give students a better idea about their future and what possibilities they have.

Bridgestock, Laura. “How Much Does It Cost to Study in the US?” Top Universities, 7 June 2019, www.topuniversities.com/student-info/student-finance/how-much-does-it-cost-study-us.

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https://research.collegeboard.org/trends/college-pricing/figures-tables/average-published-charges-sector-over-time

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Loans over Lives

“How College Debt is Crushing the American Dream” is an article written by Eric Pianin. During the first part of the article, Pianin summarizes the college and life experience of a girl by the name of Megan Curtis, who was chosen to be interviewed by the Fiscal Times. Megan Curtis was able to attend college by working part time alongside with taking out student loans. In Megan’s case, obtaining the money needed to go to college was not her biggest struggle. She was able to get $82,000 in loans with little effort but after graduating from George Washington University with a master’s degree she faced over a year of struggle trying to find a good job with steady pay but remained unsuccessful. Megan was stuck in a pit and had no choice but to defer payments on her loan during her unemployment streak. Megan finally landed a job at a consulting firm as an international trade analyst. This job will supply Megan with a starting salary of $60,000-$70,000 annually. A salary of this level will cause her live month to month to cover her rent and other expenses while staying on track to her $600 monthly installment toward her college loans.

At this point in the article, Pianin fast forwards 6 years and catches up to see how Megan’s life has changed. “Now age 30 and sharing an apartment in Northwest Washington, Curtis belongs to a generation of well-educated young people struggling to navigate one of the worst economies of modern times while shackled with student debt that seriously restricts their mobility and options.” I chose to include this quote because it is very powerful and sums up the entirety of the article. Megan states during her interview how she is able to make everything work but when to non-standard expenses, I.E. a wedding, that is where she struggles. Many Americans face similar situations to Megan, “The combination of long-term unemployment, vanishing entry-level jobs with health insurance, and the unprecedented levels of student debt have conspired to shatter the traditional American Dream for many young people who aspire to a middle-class lifestyle.” If there were a thesis sentence to for this article, this quote would be just that. The obstacles people face every day when trying to escape debt while living a somewhat decent life seems close to impossible.

The United States has surpassed a jaw dropping $1 trillion in student debt, for the first-time student debt has exceeded the total amount of credit card debt. This debt crisis is being labeled as “the hollowing-out of the American middle class.” The separation in people who are struggling with debt and living month to month versus the men and women who needed little to no loans and are out of college debt free, with a good paying job is what is creating such a black hole where the middle class should be. Many young people even say that their loans feel like an albatross around their neck.

This article goes in depth about a personal experience and dives into the research behind student loans and college debt. Many people face the struggle of trying to repay student loans and many fall behind. According to the Department of Education, in September of 2011, 8.8% of borrowers had defaulted and weren’t able to keep up with their payments within the first two years. This statistic increased by 7% from the previous year. Statistics like these are the reason many fear the middle class is disappearing.

Pianin, Eric. “How College Debt Is Crushing the American Dream.” The Fiscal Times, 2012, www.thefiscaltimes.com/Articles/2012/03/01/How-College-Debt-Is-Crushing-the-American-Dream.

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Can Annual Income Outweigh Debt?

“Why a College Degree Could Mean a Higher Paying Job for You” was written by Florida National University (FNU) admin. When diving into my research I wanted to collect data on many different aspects of my topic. A big point of controversy when it comes to choice of college is that “a degree will set you up for your future.” The article written by the FNU admin states many facts and statistics that back up the viewpoint that having a degree definitely heightens your chances of being employed with a high salary. The first great point that FNU admin makes is that most high ranked jobs have benefits including healthcare, 401K’s, networking opportunities, and a steady high salary. According to the Bureau of Labor, college graduates earn roughly 61% more than non-college graduates. This statistic alone is a motivation for many students who go to college to set up their careers and the rest of their lives. FNU admin sates their stance on the controversial topic by saying that “yes! Absolutely! We also realize that there are some exceptions, but when it comes to looking at long-term goals career-wise, getting a college degree will be the smartest investment and the reasons why will definitely outweigh why you shouldn’t.”

There are many career choices that do not require a college degree but there are hundreds of jobs that are actually illegal to obtain without a certain level of education. For instance a job in the medical field legally requires a certain level of education to be received by the student before having the ability to work in that field. In other instances jobs require a certain level of skills, for instance healthcare, law, and education. Jobs like this are basically impossible to be employed at without a college degree, they require specific levels of knowledge and skill sets that at taught in college. FNU admin then proceeds to explain how a college degree can take you on many different paths. There are hundreds of majors offered in college with professors who are trained and have skills related to their major. College degrees are very versatile, getting a degree in business can take you to multiple jobs to each respective profession.

FNU brings in statistics in the final paragraph that really caught my eye. They mention how 88% of students say they always expected to go to college regardless of their major and course of study. More than 75% of students admit that college is part of the American Dream and that they would attend college and utilize the benefits regardless of if he or she earned more money with a degree. College nowadays has become a social norm and people who do not attend college tend to stick out compared to the majority of people who do. It is 2019 and the job market is fierce, having a degree from a high performing college will only benefit you when it comes to competing for a high paying, high level job. I personally feel like college is worth it.

I hope you enjoyed reading this blog post along with all the others!

Admin, FNU. “Why a College Degree Could Mean a Higher Paying Job for You.” Florida National University, 9 July 2019, www.fnu.edu/college-degree-higher-paying-job/.

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Price of Tuition.. Flying High

“Why Has the Cost of College in the U.S Skyrocketed?”, is an article that caught my eye. It is written by 13D research, an independent institutional globally known research firm. 13D begins the article by stating how “since 1985 the cost of college has increased at four times the rate of inflation.” This is a very powerful quote from the article and I chose to use it because it caught my eye immediately. In a ten year period, between 2007 and 2017, the cost of tuition has increased by almost 65%, room and board by 51%, and textbooks by a shocking 81%. These numbers seemed very unreasonable and ridiculous but as I kept reading it all made sense. The U.S has accumulated over $1.5 trillion worth of student loan debt in the past 11 years, that is a 157% increase. This extremity of debt is a threat to the U.S economy and to all the millenials who are personally suffering.

13D states how a main goal was to open up the accessibility for more people to go to college eliminating the criteria based off of socioeconomic status. These efforts forced colleges to raise their tuition so families who were able to, could subsidize for the families who were not able to pay for the full cost. The pressure of giving more people an opportunity for education was increased when the Global Financial Crisis occurred. All of the pressure paid off because in 2017, the U.S college student body reached over 20.4 million students, this is 5.1 million more students than in the year 2000. This statistic proves how the system colleges are using is working well to provide education to those who used to not be able to afford it through scholarship. On the other hand, its increasing prices are bumping more people out of the category of students who can afford the prices. As the price of tuition increases, more and more students find themselves relying on scholarships or taking out loans.

An interesting statistic was brought up by 13D, it states “Only about a third of students at public colleges fit the description of a white, middle class 18- to 22-year-old who can depend on their parents. In fact, nearly 50% of students are living on their own and do not receive support from their parents. More than half are considered lower-income, and about a third live below the federal poverty line.” This statistic was actually pretty shocking to me. Based on many stereotypes, it is put into place that majority of college students have their tuition for paid fully, or partly by their parents. When I read that about 50% of students live on their own and receive no support from their parents I was shocked. I knew there were many students in that, or a similar situation but I wasn't expecting a number as high as 50%. For students like this, there are support systems that the college offers, for example, between 2012 and 2017, colleges increased their grant aid by 27%. This is a huge relief for many students struggling to pay for their education.

This article definitely went into depth about a main reason as to why college tuition prices have increased in the past decade. It was for good reason but in some cases it hurts more than it helped. More students were able to get an education, while at the same time, more students fell into debt due to the increasing prices. I hope my dive into the article was helpful for all my readers.

13D Research. “Why Has the Cost of College in the U.S. Skyrocketed?” Medium, 13D Research, 8 Nov. 2018, latest.13d.com/why-has-cost-college-us-skyrocketed-debt-student-12a08596b276.

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Is There a Right Choice?

“Balancing Debt Against College Choice” is a very interesting article in the New York Times written by Ron Lieber. The article is based off a true story that reflects the struggle some students face when trying to balance debt and choice of college. The article starts off by introducing the main character, Mino Caulton. He is a dislexic boy who is 18 years old and figuring out what his path is going to be for college. He was given $18,500 in grants from Juniata College. Unfortunately for Mino, along with many other families, their household value fell 80% in a previous economic downturn and if he wanted to go to a proficient liberal arts college he would need much more money in grants. One option that was mentioned in the article was for Mino to take out a loan of around $7,000 just to help pay for his freshman year of college. Beyond any grants or loans Mino and his family would still need to pull together around $43,000. Is it worth it? 

This is a decision students and families all over the world have to make. Most jobs nowadays will ask about where you graduated from college, there are always exceptions, but for the majority, the high paying jobs are given to people who graduated from at least a proficient college with a degree. In Mino’s case, a good college degree can have him facing a 5 figure debt and in that case a high paying job still isn't guaranteed. Lieber mentions in the article how Mino was not a spender, but still his savings are not even a fraction of what private college would cost for him to attend for four years. Another option for Mino is taking the Community College route. Mino mentions that he can’t help but feel like the Community College route is settling for less. I believe that many students feel this way and that is a big reason why a large chunk of highschool seniors chose debt and education over saving money. The main takeaway from this article is that college sets you up for your future but also has the ability to set you back. Many people debate over the right choice and I don't think there is one with the given circumstances. 

Many people every year set themselves up for success and others cant afford to spare the change no matter the level of intelligence or devotion to academics. The pressure of debt vs. education is a horrible pressure that needs to be changed. I believe that schools should offer more variety of grants and financial aid or lower their prices in general.

Lieber, Ron. "Balancing Debt Against College Choice." New York Times, 24 Mar. 2011, p. F2(L). Gale In Context: Opposing Viewpoints, https://link.gale.com/apps/doc/A252247477/OVIC?u=uarizona_main&sid=OVIC&xid=a4f1b161. Accessed 27 Oct. 2019.

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Drowning in Debt

“‘I’m Drowning’: Those Hit Hardest by Student Loan Debt” is an article written about the unfortunate stories of students who had such bad debt they chose to drop out of college. The main character in this article is Chavonne. She lives in Washington D.C. and is in between a few different short term jobs. The author mentions how every once in a while a debt collector will contact Chavonne and remind her of the burden on her chest. The debt she had built up from a failed education. On top of calling her and reminding her of the debt she has, the Government actually went to such lengths to seize her tax refund. The author then transitions into the past. When Chavonne was in highschool everyone around her was convincing her that the college route is worth the debt. Without a doubt, she took out a $20,000 loan and attended the University of Mississippi. 

Many students feel conflicted when making the decision of debt or no debt. Such a pressure is forced onto students to succeed and be wealthy, nowadays it seems only obtainable through a college degree. Unfortunately for Chavonne, college was not the glorious educational experience she was expecting. She was struggling more than she had anticipated and decided after 3 semesters she was done. At the time of this article being written, Chavonne is 5 years out of college and her debt is still weighing her down. Life after college for Chavonne consists of many bills and naturally her debt is not the first thing on her to do list. One big struggle when it comes to college dropouts is that going back to college and earning a degree will set you up with a higher paying job. But is attending college and building up more debt even worth the risk? It is an awful cycle that millions of students, just like Chavonne are stuck in. They are in debt and no longer have access to federal student aid, and can not afford to go back and finish their college education. 

This is a very unethical cycle that millions of unfortunate students get caught in and struggle trying to escape. Between 2014-2016 3.9 million students dropped out of college due to overwhelming debt. This is the type of statistic that only exists because of the pressure put on students by society and the government. Prices of quality education have spiked in the past decade and it is becoming impossible to keep up with.

Nadworny, Elissa, and Clare Lombardo. “'I'm Drowning': Those Hit Hardest By Student Loan Debt Never Finished College.” NPR, NPR, 18 July 2019, www.npr.org/2019/07/18/739451168/i-m-drowning-those-hit-hardest-by-student-loan-debt-never-finished-college.