Wednesday, December 03, 2008

Breaking : College Is Expensive

According to a new report from the National Center for Public Policy and Higher Education:
"published college tuition and fees increased 439 percent from 1982 to 2007, adjusted for inflation, while median family income rose 147 percent. Student borrowing has more than doubled in the last decade, and students from lower-income families, on average, get smaller grants from the colleges they attend than students from more affluent families."

When something is unsustainable, it can't go on. I predict that in the recession ever-more families will turn to public colleges, online education, shorter degree programs, overseas education, or even pass up college altogether.

And no shock, the burden falls disproportionately on the poor. How can we have a meritocracy if one year at a public university costs more than half of the income of the poorest fifth of the population?


3 comments:

merkelsey said...

I’m sure this feels as much like news to you as the official declaration we’re in a recession yesterday. To add insult to injury student loan money is getting harder to come by. My husband and I were talking last night and wondering if direct-to-consumer lending (like Prosper) might eventually step in and play a role. I’ve heard it called the ultimate “patient capital” and seems like as much a safe bet as the markets right now.

Patrick Payne said...
This comment has been removed by the author.
Patrick Payne said...

I understand the bite of college expense. In fact, I went to an online course to get geared up for my CFP designation because it was so much cheaper than going to to a university. Of course, I was lucky enough that my online course was at a university, so I guess I got the best of both worlds!

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