Tuition in the United States is the cost of higher education that is personally collected by educational institutions in the United States, excluding portions paid by tax or from other government funds as supply-side subsidies for colleges and universities, or subsidizing the demand side to students, or being paid out of the university's endowment fund or prize through a scholarship or grant.
Tuition for college has increased as the value, quality, and quantity of education have increased. This increase is sometimes controversial.
Video College tuition in the United States
Histori
The presence of colleges increased dramatically after World War II with the introduction of the GI bill and greater federal funds for higher education.
University-based research is believed to have played an important role in determining the outcome of World War II, and is believed to be essential for success in the Cold War. With the launch of Sputnik satellites by the Soviet Union, many are concerned that the United States is lagging behind in science and technology for relying on personal wealth to fund higher education, while the Soviet system is believed to be publicly funded, more meritocratic. , and more closely related to economic and military needs. Many families can not borrow sufficient funds to finance high-quality education for their children, and thereby increase their income and standard of living of their children, until after the introduction of federal student loans. As public subsidies decline and the cost and quality of education increase, loans play an increasingly important role in higher education finance. Except for his military academy, the US federal government does not directly operate and control institutions of higher learning. Instead it offers loans, grants, tax subsidies, and research contracts. The land grant dates back to the Morrill Act during the US Civil War and grants directly to students dating back to the "G.I. Bill" program that was implemented after World War II.
Maps College tuition in the United States
Overview of U.S. tuition rates.
The United States has one of the most expensive higher education systems in the world, and is also one of the most successful in terms of raising income from higher education. State colleges have no control over one major source of income - the state. In 2016-17, the average annual fee fee in the United States ranges from $ 9,700 for a public institution four years to $ 33,500 for a four-year private institution. Private colleges increase their tuition fees by an average of 1.7 percent in 2016-17, the smallest increase in four decades, according to the US Consumer Price Index.
Cause of tuition increase
Shifting costs and privatization
Between 2007-08 and 2017-18, published tuition and fees at four-year public institutions increased at an average rate of 3.2% per year beyond inflation, compared with 4.0% between 1987-88 and 1997-98 and 4.4% between 1997-98 and 2007-08. One of the causes of increasing tuition is the reduction of state and federal allocation to state colleges, causing institutions to divert fees to students in the form of higher tuition fees. State support for state and university colleges has declined by about 26 percent per full-time student since the early 1990s. In 2011, for the first time, American public universities took more income than tuition fees rather than state funding. Critics say the transition from state-to-school support is an effective privatization of public higher education. About 80 percent of American students attend public institutions.
Critics also note that investing in higher education is extremely unprofitable compared to other investments. Heavy taxes and inadequate subsidies for higher education contribute to a lack of investment in education and a lack of educated labor, as shown by very high tax returns for investments in higher education.
Bubble Theory
The view that higher education is a controversial bubble. Most economists do not think the return to higher education declines. Instead, they appear to be rising, and much higher than other investment returns like stock markets, bonds, real estate, or private equity.
One of the rebuttals to the claim that a misleading bubble analogy is the observation that bubble bursts are a negative effect on students who bear student debt, for example, as the American Association of Colleges and Universities reports that "Students are deeper in debt today than ever before..The heavy debt burden trends threaten to limit access to higher education, especially for low-income and first-generation students, who tend to carry the heaviest debt burden.The federal student assistance policy has steadily incorporated resources into student loan programs rather than need-based grants, a trend which binds future generations with a high debt burden.Even students who receive federal grants help find it harder to pay for college. "
Student loans
Another proposed reason for raising tuition fees is sometimes the US Congress raises the 'borrowing limits' of student loans, where an increased availability of students to take on a deeper loan sends messages to colleges and universities that students can 'afford more,' and then , in response, the higher education institution increases the tuition fee to fit, leaving the student back where he started, but deeper into debt. Tuition fees begin to accrue when people start college, such as orientation and new student fees, and additional fees on your departure, such as senior fees and start-up costs. In 1987, then Minister of Education William Bennett argued that "... the increase in financial aid in recent years has allowed universities and universities to brilliantly raise their dues, convinced that Federal loan subsidies will help dampen the rise." This statement came to be known as the "Bennett Hypothesis."
The non-partisan New York Fed studied the impact of increased supply of loans on tuition after major policy changes in the federal aid programs available for undergraduate students that occurred between 2008 and 2010 "found" that most institutions were exposed to the maximum [loan] this is ahead. policy changes incurred a disproportionate tuition hike around these changes, with the effect of changes in Pell Grant's specific, subsidized maximum program. "
However, many empirical studies that have examined the effect of student loans on tuition fees have found no evidence of increased tuition, especially after deducting scholarships and after considering improvements in the quality of education funded by an increase in tuition fees. Moreover, the widespread availability of private student loans makes it unlikely that the availability of public student loans limits the demand for education.
An additional rebuttal to student loan theory is the fact that even in the years when the borrowing limit has not yet risen, tuition fees are still on the rise, and tuition has increased more in public institutions than in private institutions. Public lectures have jumped 33 percent nationally since 2000.
A paperwork recently posted online by the Federal Reserve Bank of New York in 2015 (revised in 2016) concludes that undergraduate institutions that are more exposed to an increase in student loan programs tend to respond with modest increases in lecture rates. The paperwork has not been the subject of peer review.
Lack of bankruptcy protection
Third, the new theory claims that recent changes in federal laws remove all standard consumer protection (the truth in lending, insolvency proceedings, restrictive laws, the right to refinance, compliance with usury laws, and the practice of Debt & amp; Fair, etc.) release students from the ability to declare bankruptcy, and, in response, lenders and colleges know that students, powerless to declare bankruptcy, are on the hook for whatever amount they borrow - including late fees and interest (which can be capitalized and increase the principal amount of the loan), thereby eliminating the incentive to provide a reasonable loan to the student so that he can repay. However, changes in the availability of bankruptcy for private student loans led to no change in the price or availability of private student loans, suggesting that the theory is unreasonable.
Additional factors
Other factors that have been involved in increasing tuition fees include the following:
- The practice of 'college discount', in which a college provides financial assistance from its own funds. This help for low-income students means that 'paying' students should 'make' for the difference: an increase in tuition. According to Inside Higher Ed, 2011 reports from the National Association of College and University Business Officers explain more about the practice of tuition discounts. This article notes that "while the total amount spent on institutional assistance for new students is rising, the average amount spent by institutions for each student declines slightly," and provides, as one possible reason for this decline, that between 2008 and 2011 "colleges and universities should lower the amount they give to each student to help include more students."
- According to Mark Kantrowitz, an expert recognized in this field, "The most significant contributors to the increase in tuition fees in public and private universities are the cost of teaching.It accounts for a quarter of the increase in tuition fees in public colleges and a third of the increase in private colleges. "
- Kantrowitz's research also found that "Adhering to an increase in the number of regulations - in particular, with reporting requirements - adding to tuition fees," thus contributing to the increase in tuition fees to pay for these additional fees. Since deregulation, tuition and average fees at public universities have increased by 90 percent, according to the Higher Education Coordinating Agency of Texas. Of the 181 members of the 83rd Legislature of the state, more than 50 have voted at least once to advance efforts to end the deregulation of tuition, while fewer than 20 people consistently choose to enforce it. Many have never chosen this problem, and more than 40 members are new students. This increase, however, is not entirely negative. Increased college tuition helps universities redeem it in their budgets.
- Colleges and universities have raised billions of dollars in bailouts, especially in elite universities. Harvard University announced its $ 32 billion donation, and Yale reported a $ 19.4 billion donation on tax-free returns. In 2011, two California public university systems have more than $ 7 billion in endowment funds but raised a combined 21% tuition fee. These figures raise concerns about "institutional gaps" - meaning that universities may not manage their waqfs appropriately and that other universities try to compete with elite institutions, thereby imposing higher tuition fees in competition to maintain faculty levels and status tall one..
Recommendations
Based on available data, recommendations for addressing tuition increases have been raised by experts and consumer rights advocates and students:
- Increase public funding for higher education to offset the investment tax loss in higher education compared to other investments.
- State and federal governments should increase allocations, grants, and contracts to colleges and universities.
- The federal, state, and local governments should reduce the burden of regulation in colleges and universities.
- Minimize investment risk in higher education through credit forgiveness or insurance programs. The federal government should impose partial or total forgiveness of loans for students who have taken student loans.
- Tax the endowment income of the university and link the endowment tax to the school tuition level.
- Colleges and universities should look for ways to reduce costs without reducing quality.
- Federal lawmakers should restore standard consumer protection (truth in lending, bankruptcy proceedings, restrictive laws, etc.) to student loans that have been abolished by the issuance of the Bankruptcy Reform Act of 1994 (PL 103-394, enacted October 22, 1994), amended by FFELP (Federal Family Education Loan Program).
- Cut a lender's loan, reduce student dependence on loan to pay for college, and otherwise reduce 'borrowing limits' to limit the amount that students can borrow.
- A covertly funded think tank by entities with close ties to private student lenders has advocated scaling back federal student loans as this will increase the rates that private lenders may charge and will expand the amount they can lend. To support these arguments, the think tank has made claims that public (but not personal) student loans lead to an increase in tuition fees and the advantages of an educated workforce. Most economists are skeptical of this claim. MPs should reduce Federal aid.
- Legislation or legislative action to lower or freeze tuition, such as the freeze-up model of tuition fees Canada, should be authorized by federal lawmakers: Economists generally believe that price control leads to deficiencies and inefficiencies.
- Kantrowitz has issued the following recommendation:
- "The National Center for Education Statistics should increase the frequency of the Study of National English Student Assistance to annual, from three years, to allow for more timely tracking of factors. , The NCES (National Center for Education Statistics) should take steps to improve the efficiency of data collection and publication for the Education Statistics Digest, so that all tables will include more recent data, in some tables being five years. "
- "The US Department of Education should study the relationship between the average increase in EFC (Expected Family Contribution) figures and average tuition rates.In addition, it will be useful to examine how the average history of EFC figures has changed relative to family income when measured based on current and constant dollars for each quartile of earnings. "
Growing tuition
"Disproportionate inflation" refers to inflation in certain economic sectors far greater than inflation in general living costs.
The following chart shows the general inflation rate of living expenses (for urban consumer, CPI-U), medical costs (component of medical costs of the consumer price index (CPI)), and lectures and tuition fees for a four-year private college fee (from College College data ) from 1978 to 2008. All tariffs were calculated relative to 1978.
The cost of living increases about 3.25 times during this time; medical costs increased about 6-fold; but tuition and inflation costs are close to 10-fold. Another way to say this is that while medical costs are doubling the cost of living, tuition and fees increase fourfold from the cost of living inflation. Thus, even after controlling the effects of general inflation, the tuition and tuition of 2008 incurs a tripling expense as in 1978.
According to the College Board, the average tuition fee for a 4 year public college in 2008-2009 was $ 6,585 compared to 2004 when it cost just over $ 5,000. Average tuition rates in out-of-state states for 2008-2009 are $ 6,585 for 4-year colleges in the state up to $ 17,452 for 4 years college overseas (collegeboard.com). The average increase in tuition fees is 4.2% per annum
Economic factors
Most economists believe that the benefits of higher education outweigh the costs by a wide margin and that higher education is more than just paying for itself. There are concerns about investment in higher education because of the excessive taxation of uneducated workers and inadequate subsidies.
Social factors
In addition to the economic effects of the rapidly rising debt burden placed on students, there is a social impact on higher student debt. Some studies show that students from low-income families are more likely to quit college to avoid debt. Families classified as the middle class are at risk because of the increasing cost of tuition fees will be limited in their education and training that enables them to succeed in their community. Studies show that over 75% of students report stress, including stress that involves educational challenges. The latest report also shows an increase in suicide that is directly caused by the stress associated with student loans that have difficulty and default. The adverse mental health effects on the student population due to induced economic pressures are of social concern. Students generally have higher stress levels on their financial burdens such as student loans, and predictable jobs in the job market.
Student loan debt
The closely related problem is the increase in student loans to finance college education and generate student loan debt. In the 1980s, federal student loans became accepted student support centers. From 2006 -2012, federal student loans more than doubled and outstanding student loan debt grew to $ 807 billion. One consequence of increasing student loans is an increase in the number of defaults. Over the same time period, the two-year failure rate increased from 5.2 percent in 2006 to 9.1 percent in 2012 and more than double the historical low of 4.5 percent set in 2003.
Since data collection began in 1987, the highest two-year failure rate recorded was 22.4 percent in 1990. In 2012, the US Department of Education issued a detailed federal student loan rate including, for the first time, a three-year failure rate. Nonprofit institutions have a three-year average failure rate of 22.7 percent while public institutions are 11 percent and nonprofit private institutions of 7.5 percent. More than 3.6 million borrowers from more than 5,900 schools have repaid payments during 2008-2009, and about 489,000 of them failed. Nonprofit colleges are responsible for 10 percent of students enrolled but 44 percent of student loans fail.
In 2011, the Project on Student Debt reported that about two-thirds of students graduating with a bachelor's degree from a 4-year nonprofit university have taken student loans with an average debt of $ 25,250, an overall increase of five percent from 2009 In 2010, student loan debt exceeded 'Credit Card' debt. Student debt in the United States has reached $ 1 trillion, almost 50% increase from 2008. As a result of student loans and the tuition crisis, research has shown that students are experiencing stress under the current economic recession and fiscal challenges.
In the United States Address, President Barack Obama discussed rising tuition fees in the United States. Through an executive order in 2011, President Obama made a student loan plan, "Pay as You Get," which allows former students to pay education debt as a percentage of their income. Furthermore, the Obama administration has developed a standard letter to be sent to students claiming to show attendance fees at an institution, including all net fees and financial aid received. The use of the letter is not mandatory.
See also
- College admission in the United States
- Credential inflation
- EdFund
- Free education
- Higher education bubble in the United States
- Higher Education Price Index
- Post-secondary education
- Private universities
- Student benefits
- Student debt
- student loans in the United States
- Education Bureau
- Learning center
- Tuition
- Freeze tuition
References and notes
External links
- "College, Inc.", PBS documentary FRONTLINE, May 4, 2010
- "Tuition Lectures Too Much Due to the Power of Faculty". The Chronicle of Higher Education. August 5, 2012 . Retrieved 2012-09-08 . Ã, by Robert E. Martin
Source of the article : Wikipedia
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