Controlling College Education Costs: A Comprehensive Approach
Over the past several decades, the burden of college education costs has significantly shifted from public to private funding, driving tuition rates and student debt to unprecedented levels. This article explores the historical context, current challenges, and potential solutions to address the escalating costs of higher education.
The Evolution of Public Funding
It is often overlooked that in 1970, the state supported universities and colleges provided around 80% of the operating expenses. However, by 2010, this figure had plummeted to just around 20%.
In 2012, during an alumni dinner, the outgoing university president delivered a hindsight-filled speech. He highlighted that the decline in state funding for higher education was reflective of a broader national trend. As a result, universities were forced to increase tuition fees, and alumni giving for scholarships became a critical coping strategy.
Another critical issue discussed was the reliance on student loans. Approximately 80% of undergraduate students in 2012 were financing their education through student loans, with an average debt of around $27,000 upon graduation. This trend has made college student loans a significant profit center for banks, as these loans are exempt from bankruptcy.
Historical Context and Potent Solutions
One historical example of a forgivable loan program is the federal student loan program for teachers initiated in 1971. This program offered graduates 10% loan forgiveness for each year they taught in a public or private school, with an additional 5% for teaching in high-poverty schools. After five years, 75% of the loan was forgiven, making the remaining 25% fairly manageable with fixed low-interest rates. Unfortunately, this program was ended in 1973.
One of the key solutions proposed is to make student loans forgivable for high-demand fields and careers in public service, such as education and social work. These professions often have lower pay than their private sector counterparts. Linking the forgivable provision to actual student need, based on family income and assets, can help address the financial disparity.
Increasing Public Funding
Another crucial solution is increasing public funding for public colleges and universities. At that alumni dinner, the outgoing university president made a bold statement: most states spent nearly twice as much on prisons as on higher education. He suggested that if more money were invested in helping people acquire skills for 21st-century jobs, the need for imprisonment might diminish.
A deeper dive reveals that many states indeed spend much more on crime and punishment than on all educational pursuits. Therefore, a more educated populace may be less likely to engage in criminal activities, creating a virtuous cycle of reduced incarceration rates and increased educational investments.
Conclusion
The challenges of college education cost control are multifaceted, requiring both innovative financing solutions and increased public investment. Making student loans forgivable for certain fields, and scaling up public funding for education, can significantly alleviate the financial burden on students and families.
By addressing these issues, we can not only reduce student debt but also foster a more educated and just society, ultimately leading to long-term economic and social benefits.