College or post-secondary education is the golden ticket that is supposed to be the foolproof formula of living a great life. As recently as a decade ago, obtaining a college education was reputed to be the most important and valuable investment an individual can make in their lifetime. Not only did it provide students with the tools for advanced critical thinking, problem solving, and in some cases, special technical skills, it opened up doors to a lifetime of opportunity. Something so important most would think that it would be very rewarding. Over the past decade however, many have seen quite the reversal of this reality described above. Students today are graduating with increasingly more debt. With low salaries becoming a staple post-graduate due to the recovering economy, graduates are hit with student loan debt, and more young adults are living at home post-graduation. College graduates are becoming less independent due to the rising cost of tuition with concrete statistics and numbers used as leading facts of this terrible trend.
Tuition, fees, room, and board have always been the driving factor of the cost of a higher education. According to the U.S. Department of Education, in 1964-65, the average annual tuition at a public college or university including fees and housing in was an estimated $6,592. By 2010-2011, that figure increased to $13,297—a dazzling 101.7 percent increase. Private institutions saw even more of an increase, with the average tuition (including room and board) going from $13,233 a year in 1964-65, to $13,395 in 2010-2011. This amounted to a 137.2 percent increase. It is interesting to note that despite the rapid increases in the overall costs of tuition, there still continues to be increased enrollment in universities.
Between 1967 and 2010, there were 7.2 million more people enrolled full time in college—an overall 70% in that time span reported the U.S. Department of education. This shows no matter the cost higher education that it is and always will be in high demand. Once that is taken into account, the return on obtaining a college degree and investing the time and money can be rewarding. These are the reasons enrollment has been growing drastically over the last 47 years. Though now the question is how the does post graduate enjoys the benefits when facing student loan debt after graduation?
Many people have notice a continued trend in regards to the rise of tuition and the cost of living. According to Steve Odland in a Forbes Magazine article the cost of tuition is currently increasing at a higher rate than current salaries and wages. As a result, many post-graduates are spending longer periods of time (often years) and much more money paying off student loan debt. Similarly, funding that is provided by both the federal and state governments have not been able to keep pace with either inflation or the rising cost of tution. With this students and families can no longer rely on grants, scholarships, or personal savings so many have to rely on student loans.
Student loan debt was at all-time high, with two-thirds of the class of 2011 taking out loans and over 40 percent of 25-year-olds still in student loan debt (Odland). With two-thirds of borrowers having debt loads under $25,000, however that means one-third are looking at more than $25,000 in debt (Odland). With small salaried jobs post- graduation many have trouble paying off the debt that about 17 percent of borrowers are at least 90 days delinquent on their payments (Odland).
With the high cost of tuition this is also having a cultural effect with African American and Latino students who are mostly burdened with student debt, with 81 percent of African American students and 67 percent of Latino students who earned bachelor’s degrees leaving school with debt (Odland). This is in comparison to the 64 percent of white students who graduate with debt (Odland). $864 billion in federal loans and $150 billion in private loans, student debt in America now exceeds $1 trillion (Odland).
With a six months from Salliemae the hopes in find a reasonable job to pay off the debt is unyielding. With the recession having many effects on it’s own, with the rising tuition cost still rising, more than a third of recent college graduates are working in positions that do not require a degree. This is what expert economist call a “mal-employment" rate, and right now it is capped at 36% for college-educated workers under the age of 25, according to figures by Andrew Sum, director of the Center for Labor Market Studies at Northeastern University. The official unemployment rate for grads under age 25 was 7% with 8% of grads working part-time (Sum). This mal-employment rates are so significant that the numbers show how it effects graduates paying off student loans take longer because of the type of jobs graduates work.
Many graduates end up working jobs that are not usually in the field of study that most students went to school for. Among the 3 million recent college graduates, 152,000 are working in retail sales and nearly 100,000 work as waiters, bartenders or in other hospitality related fields (Sum). Along with another 80,000 serve as clerks or customer service representatives, with 60,000 working in construction or manual labor (Sum). Taking a job below your education level carries a high financial burden on anyone. Though those who have accumulated thousands of dollars in student loan debt this can be deferential. Up to 40% earned less per week by the “mal-employed” rather than their peers, Andrew Sum establish. This makes it significantly harder for students to pay off their student loans, move into their own apartments and even get married.
With this being said, many post graduates are losing and missing on gain in their own independence post-graduation because of the effects of the rising cost of tuition. Many college graduates are now opting to live with their parents. High tuition rates and debt have made living independently an impossible goal for many current students and graduates. A record 21.6 million young adults in America were living in their parents in 2012, according to a new Pew Research Center poll. Apparently this is the highest number in the last four decades. With the decline in employment and “mal-employment, student loan debts, and other factors the thought of this generation living on their own is near impossible. The opportunity of support one-self financially, being able to put a roof over their head, and be financially stable has become unattainable to most students in this millennial generation.
The rising cost of college tuition are having so many effects on everyone and everything in this world. But most importantly having effect on students by not obtaining the ability of gaining the independence that is so-called supposed to be the reward of gaining a college degree and education. Many are in more debt than they could imagine while trying to establish a career in a “mal employment environment, while causing more and more students and post-grads to be living at home. So this once do called “golden” ticket to life has become a heavy burden to carry with all the frustration of the rising cost of college tuition.
Works Cited
Fry, Richard. "A Rising Share of Young Adults Live in Their Parents' Home." Pew Research Centers Social Demographic Trends Project RSS. Pew Social Trends, 1 Aug. 2013. Web. 18 Mar. 2014.
Johnson, Anne, Tobin Ostern, and Abraham White. "The Student Debt Crisis." Center For American Progress. America Progress Organization, 25 Oct. 2012. Web. 19 Mar. 2014.
Luhby, Tami. "Recent College Grads Face 36% 'mal-employment' Rate." Money CNN. CNN, 25 June 2013. Web. 19 Mar. 2014.
Mathews, Dylan. "Introducing ‘The Tuition Is Too Damn High." Wonkblog. The Washington Post, 26 Aug. 2013. Web. 19 Mar. 2014.
Odland, Steve. "College Costs Out Of Control." Forbes. Forbes Magazine, 24 Mar. 2012. Web. 18 Mar. 2014.
US Department of Education. "Average Undergraduate Tuition." Average Undergraduate Tuition and Fees and Room and Board Rates Charged for Full-time Students in Degree-granting
Tuition, fees, room, and board have always been the driving factor of the cost of a higher education. According to the U.S. Department of Education, in 1964-65, the average annual tuition at a public college or university including fees and housing in was an estimated $6,592. By 2010-2011, that figure increased to $13,297—a dazzling 101.7 percent increase. Private institutions saw even more of an increase, with the average tuition (including room and board) going from $13,233 a year in 1964-65, to $13,395 in 2010-2011. This amounted to a 137.2 percent increase. It is interesting to note that despite the rapid increases in the overall costs of tuition, there still continues to be increased enrollment in universities.
Between 1967 and 2010, there were 7.2 million more people enrolled full time in college—an overall 70% in that time span reported the U.S. Department of education. This shows no matter the cost higher education that it is and always will be in high demand. Once that is taken into account, the return on obtaining a college degree and investing the time and money can be rewarding. These are the reasons enrollment has been growing drastically over the last 47 years. Though now the question is how the does post graduate enjoys the benefits when facing student loan debt after graduation?
Many people have notice a continued trend in regards to the rise of tuition and the cost of living. According to Steve Odland in a Forbes Magazine article the cost of tuition is currently increasing at a higher rate than current salaries and wages. As a result, many post-graduates are spending longer periods of time (often years) and much more money paying off student loan debt. Similarly, funding that is provided by both the federal and state governments have not been able to keep pace with either inflation or the rising cost of tution. With this students and families can no longer rely on grants, scholarships, or personal savings so many have to rely on student loans.
Student loan debt was at all-time high, with two-thirds of the class of 2011 taking out loans and over 40 percent of 25-year-olds still in student loan debt (Odland). With two-thirds of borrowers having debt loads under $25,000, however that means one-third are looking at more than $25,000 in debt (Odland). With small salaried jobs post- graduation many have trouble paying off the debt that about 17 percent of borrowers are at least 90 days delinquent on their payments (Odland).
With the high cost of tuition this is also having a cultural effect with African American and Latino students who are mostly burdened with student debt, with 81 percent of African American students and 67 percent of Latino students who earned bachelor’s degrees leaving school with debt (Odland). This is in comparison to the 64 percent of white students who graduate with debt (Odland). $864 billion in federal loans and $150 billion in private loans, student debt in America now exceeds $1 trillion (Odland).
With a six months from Salliemae the hopes in find a reasonable job to pay off the debt is unyielding. With the recession having many effects on it’s own, with the rising tuition cost still rising, more than a third of recent college graduates are working in positions that do not require a degree. This is what expert economist call a “mal-employment" rate, and right now it is capped at 36% for college-educated workers under the age of 25, according to figures by Andrew Sum, director of the Center for Labor Market Studies at Northeastern University. The official unemployment rate for grads under age 25 was 7% with 8% of grads working part-time (Sum). This mal-employment rates are so significant that the numbers show how it effects graduates paying off student loans take longer because of the type of jobs graduates work.
Many graduates end up working jobs that are not usually in the field of study that most students went to school for. Among the 3 million recent college graduates, 152,000 are working in retail sales and nearly 100,000 work as waiters, bartenders or in other hospitality related fields (Sum). Along with another 80,000 serve as clerks or customer service representatives, with 60,000 working in construction or manual labor (Sum). Taking a job below your education level carries a high financial burden on anyone. Though those who have accumulated thousands of dollars in student loan debt this can be deferential. Up to 40% earned less per week by the “mal-employed” rather than their peers, Andrew Sum establish. This makes it significantly harder for students to pay off their student loans, move into their own apartments and even get married.
With this being said, many post graduates are losing and missing on gain in their own independence post-graduation because of the effects of the rising cost of tuition. Many college graduates are now opting to live with their parents. High tuition rates and debt have made living independently an impossible goal for many current students and graduates. A record 21.6 million young adults in America were living in their parents in 2012, according to a new Pew Research Center poll. Apparently this is the highest number in the last four decades. With the decline in employment and “mal-employment, student loan debts, and other factors the thought of this generation living on their own is near impossible. The opportunity of support one-self financially, being able to put a roof over their head, and be financially stable has become unattainable to most students in this millennial generation.
The rising cost of college tuition are having so many effects on everyone and everything in this world. But most importantly having effect on students by not obtaining the ability of gaining the independence that is so-called supposed to be the reward of gaining a college degree and education. Many are in more debt than they could imagine while trying to establish a career in a “mal employment environment, while causing more and more students and post-grads to be living at home. So this once do called “golden” ticket to life has become a heavy burden to carry with all the frustration of the rising cost of college tuition.
Works Cited
Fry, Richard. "A Rising Share of Young Adults Live in Their Parents' Home." Pew Research Centers Social Demographic Trends Project RSS. Pew Social Trends, 1 Aug. 2013. Web. 18 Mar. 2014.
Johnson, Anne, Tobin Ostern, and Abraham White. "The Student Debt Crisis." Center For American Progress. America Progress Organization, 25 Oct. 2012. Web. 19 Mar. 2014.
Luhby, Tami. "Recent College Grads Face 36% 'mal-employment' Rate." Money CNN. CNN, 25 June 2013. Web. 19 Mar. 2014.
Mathews, Dylan. "Introducing ‘The Tuition Is Too Damn High." Wonkblog. The Washington Post, 26 Aug. 2013. Web. 19 Mar. 2014.
Odland, Steve. "College Costs Out Of Control." Forbes. Forbes Magazine, 24 Mar. 2012. Web. 18 Mar. 2014.
US Department of Education. "Average Undergraduate Tuition." Average Undergraduate Tuition and Fees and Room and Board Rates Charged for Full-time Students in Degree-granting