Why Is the Cost of College So High?

Getting a college degree in the United States is notoriously expensive. Some colleges, like Columbia and Duke, cost students upwards of $60K a year. Although you can find colleges with a lower price tag, the truth is that most families rely on multiple sources to be able to afford the cost of college. This has led to nearly $1.75 trillion in student loan debt in the United States.

As crazy as that number is, there is growing pressure to go to college. So, is the cost of college too high? And what can you do to lower costs?

In this post, we will take a look at various factors that contribute to the rise in the cost of college.

Increasing Demand

In today’s competitive economy, having a college degree is invaluable. Because a college degree is pretty essential for landing a job, more and more students continue to enroll in college every year, despite the rising costs. At the end of the day, colleges are businesses that want to attract as many consumers, or students, as possible. To keep up with one another, they continue offering new perks and services and spend hundreds of thousands of dollars on marketing and advertising. These costs are then passed down to students through tuition, fees, and charges for room and board.

State-of-the-Art Amenities

When you sign up to get a college degree in America, you are essentially signing up for an all-inclusive college experience. Colleges and universities are competing with each other for your business. This means there is pressure to provide contemporary facilities that will attract students. Modern buildings, libraries, residence halls, student gyms, and all-you-can-eat cafeterias all contribute to rising tuition, fees and room and board. It costs money to maintain a nice campus, and the extra costs come straight out of students’ pockets.

Increase in Student Services

Student services, like counseling and healthcare, have also been on the rise. While beneficial to students’ mental health and academic success, these types of services are another reason for increased cost.

Administrative Positions

While you might think that it’s professors who are making the big bucks, it’s surprisingly faculty in administrative roles. There has been a surge in administrative positions over the years, with some administrators earning six-figure salaries.

Decrease in Public Funding

For many years, state and federal governments have not provided sufficient support for higher education, despite the ever-increasing costs. As a result, colleges pass these costs down to students through tuition, fees, room and board. Families have really struggled to meet these costs because the cost of living has skyrocketed while wages have remained relatively stagnant during that same period of time.

More recently, there has been greater interest in providing some additional federal or state support for higher education. Some states now offer free tuition for community college, and some states offer grants or scholarships to students who attend in-state public universities. There is also greater momentum for increasing the Pell Grant at the federal level, so students with significant demonstrated financial need may one day receive additional support.

Increase in Financial Aid

Ironically, what helps students pay for college may also hurt them financially. Because students and parents can obtain federal student loans, some colleges have taken the opportunity to increase the cost of tuition and room and board. This is especially true of private universities, as these institutions are not as regulated as public colleges and universities.

Is College Tuition Too High?

So, is college tuition too high? While the cost of getting a college degree is truly mind-boggling, degree-holders fare much better financially than those without a degree. College graduate starting salaries are at an all-time high. Graduates with a college degree earn $450 more per week than those without. Unemployment among people without a college degree stands at 5.4%. Among those with a four-year degree, unemployment goes down to just 2.8%.

How to Make College Affordable

While you can’t control the outrageous fees, there are things you can do to make college more affordable for you. Here are ways you can cut the cost of college tuition:

• Take AP courses in high school. You can use your AP test scores to earn college credits.
• Attend college in-state.
• Find colleges with lower tuition and/or a generous financial aid package.
• Apply for scholarships. Scholarships are FREE money for college that you don’t need to pay back later on. There is literally nothing better than that. You can find merit scholarships, athletic scholarships, and scholarships that award specific majors, hobbies, identities, among many others. Not sure how to apply? Learn here.
• File your FAFSA. The FAFSA determines your eligibility for financial aid. File the FAFSA early on, as a lot of financial aid is awarded on a first-come first-served basis. If you aren’t sure if you are eligible, check here.
• Complete lower-division courses at a community college. Community colleges generally offer courses at a much lower cost – and in some states, you may not be charged for tuition at all!
• Understand the total cost of attendance. When figuring out how you will pay for college, the cost of tuition is not the only thing you should be paying attention to. There are other major fees, such as room and board and books and supplies.
• Set a budget. Creating a budget for yourself can be so helpful when it comes to paying for college. It doesn’t hurt to recruit your parents as well. Know how much your cost of attendance is, and set a budget for any additional expenses, like groceries and recreation.

Final Thoughts

If you’re worried about paying for college, you are not alone. The cost of getting a college degree is at an all-time high. Fortunately, there are several ways to cut costs:

• If you are eligible to complete the FAFSA, be sure to submit it your senior year, and every year you’ll be attending college. The FAFSA application always opens on October 1st.
• There are many careers that only require an associate degree or certificate that can be earned at a community college. If the career you plan to pursue falls into this category, the cost of your education will be significantly lower! Even if you do need to obtain a bachelor’s degree, you can complete your first two years at a community college and then transfer. This will result in much cost savings.
• Be sure to apply for scholarships throughout high school and college! You can apply for scholarships offered by the colleges you are applying to, as well as local scholarships in your community, and private external scholarships like the ones you’ll find on the ScholarshipOwl platform.
• Once you receive your admission offers, be sure to compare your financial aid and scholarship offers for each school. Choose a college that offers an affordable path to a degree so that you can reduce your reliance on student loans, and possibly avoid them altogether.
• Work full-time during breaks and part-time during the school year. Working will not only provide you with income to apply towards your education; it will also provide you with valuable experience that will make you a more marketable job candidate in the future