Higher education is very expensive in the modern world. Everyone has long accepted this state of affairs; nevertheless, students still try to choose the best option. The high fee for education allows for creating the right conditions for young people to study and live, as well as providing teachers with decent wages and opportunities for professional development.
At the same time, not having money for a proper education may deprive a person of the possibility to occupy higher positions in society. Very often, parents of contemporary youth have to prepare for paying the tuition in advance. As it happens, this issue is actively being discussed nowadays, and it might as well be the topic for writing an excellent academic paper just click here and find some more information.
Education debts in the US
Student loans were once a universal model and a hope for the rapid development of the American economy. This practice, by the way, was adopted by South Korea and other countries too. However, the policy of lending US students the money for education turned out to have some negative consequences. Today, about 50 million former and current students owe more than $1.6 trillion to American banks! It constitutes 7% of all citizens’ debts. Only mortgages surpass this amount. As a result, there is a severe concern that the student credit bubble might burst in the coming years.
According to economists, graduates begin to experience financial difficulties as soon as during the second year of trying to clear the debt. Today, 10% of people are not able to repay their student loans, and experts predict this number will increase by up to 40% by 2023. Because of this, more than 70% of American postgraduates regret spending time getting their degrees.
Moreover, these loans are a psychological burden for young Americans. They will have to pay enormous sums of money spread out over 15, or even 20 years. It means that the former students live all this time in fear of losing a job or getting sick. They cannot afford expensive cars, a mortgage for a house, or other significant expenses.
Why Is the Cost of Education Increasing?
Many educational institutions raise their fees to cover stuff like utilities. However, the teaching staff remains the priciest budget item. A significant amount of funds is also needed for the infrastructure because modern standards of learning require high-quality equipment for classrooms. It is also worth considering that the buildings need mending from time to time.
Large amounts of money are spent on the computerization of the learning process. The cost of new technologies is quite high. This factor is of major importance because nowadays, students need Internet access and an opportunity to use different kinds of media while being in comfort. Significant investments are what creates optimal conditions.
Although the technology is progressing, it is necessary to replenish library funds and order books and manuals. Besides, colleges and universities pay for various art groups and sports sections, where many students spend plenty of time. The increase in tuition fees is also affected by considerable taxes.
Does a Degree Pay Off?
It is no secret that leading universities to raise the cost of their services due to the high demand and prestige of such education. Graduates of the Ivy League keep in touch with each other and make use of the network acquired during studying for their successful careers. In elite universities, students are taught not only to be informed of the surrounding world but also to act in it and shape it.
Higher education is worth it since it provides knowledge and experience that can be acquired only in this way. Graduates of prestigious institutions earn significantly more than their peers, who received more accessible degrees. Statistics tell us that, in economic terms, specialists who have obtained their academic degrees are able to put their knowledge into practice and recoup the cost of education in a relatively short time. Appropriate training can help students break into the chosen industry and get ahead in their careers faster, along with boosting their overall earnings.
Many universities and colleges offer opportunities for distance education. This option also requires certain expenses, but still not as significant. The modern world is developing at a very high speed and, therefore, it is necessary to improve and structure acquired knowledge continually. Courses, both full-time and online, can help fill your information gaps.
Summing up, the market of educational services should maintain a balance between the cost of training and the financial capabilities of students. At the same time, when choosing a college or university, you should not be guided by its prestige, because it is not a guarantee of future success. Sometimes it is better to opt for a specialty with lower competition, that will get you a high-paying job that you will like.