A Costly Future: the Reality of Rising Costs for College Degrees

Copyright (c) 2013 Jared Nolan

People all over the country, from young people just graduating high school to older individuals who want to continue their education, find themselves facing the grim reality of rising costs for college degrees. Each year, many colleges all over the U.S. raise their tuition rates as financial aid and grant money dwindles, leaving millions of students with no option but to sign off on loans that they will never be able to pay back.

This has resulted in thousands of loans ending up in default, individual credit being ruined, and many students having to enter into loan rehabilitation, which is especially disheartening when they discover all the money they owe is for a degree that has not helped them find a job in their career field. While this seems to be a vicious cycle of loaning, spending, and an inability to repay, the biggest question is, why does the cost of tuition keep rising, and what is being done about it? Financial and educational experts all seem to have different opinions about the answer.

Since the start of the decade, many colleges have raised their tuition nearly five percent each school year, and these percentages remain on the rise. While students scramble to come up with tuition money and sign loans that they probably cannot afford, colleges continue to blame their respective states for a decline in funding, and states blame financial aid programs that fund lower and middle class students tuition. They assert that financial assistance, such as Pell Grants, cause colleges to raise their rates in order to make up the gap, but not only does this outlook scapegoat students in a certain income bracket, there is also little evidence to back up this claim. Instead, financial experts have pointed out that public and state funding has been in sharp decline since the recession, and that more and more, students have had to find ways to pay for their tuition, even if it means taking out thousands of dollars in loans in order to complete their college degrees.

While there is little that students can do about the rise in tuition, there are several things they can do so that they don't find themselves hopelessly mired in debt after college. The best thing students can do is be wise and conservative about their college degree loans. If they must borrow money, they should not borrow more than they need. Secondly, if they plan on going to college in the future, then having a savings account that creates a healthy interest is also a good idea. It is never too soon to start saving, especially when these trends are only expected to continue in the coming years and financial aid will become less of an option for many college students.

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