Scheible 1

Lydia Scheible

Research Paper

Zachary Gregory

12 July 2020

Why decreased college costs are better for student’s futures

Millions of Americans have student loan debt. For many people college is the next

logical step after high school. Where you will earn a degree, become independent and start your

career, but at a large price. College costs have significantly increased over the past few decades.

Tuition, room and board, books and supplies and the degree you are trying to obtain all

contribute to that cost. In order to attend college, many students take out loans. These loans

collect interest and can cause a significant amount of debt for students during and after college,

where they can struggle to pay them back. Debt can alter the course of people’s lives and can be

a deciding factor when choosing a job, a home or a future. Due to the increase in debt that

college students accumulate and the effect it has on their futures, college tuition should be

decreased.

Over the past decade, college costs have significantly increased, putting more pressure on

students after graduation. Throughout this research, many of the sources have mentioned the

rising United States student loan debt. In Bill Fay’s article “Student Loan Resources: Financial

Aid & Loan Debt Management.” He stated that student debt has jumped from $260 billion in

2004 to nearly $1.4 trillion in 2017 (Fay). Further, in John Eidson’s article “Nearly 40% of Gen

Z Heading Back to School with Saving for Future Student Loan Repayment Their Top Priority.”

he showed the student debt rising to $1.6 trillion at the end of 2019 first quarter. Moreover, he

mentioned the number of senior citizens with student debt has moved from 700,000 to 2.8
 Scheible 2

million. This significant increase is a worrisome sign of the growing college debt issues for

Americans.

According to a 2017 survey, 40% of students declined admission to their foremost

college due to financial apprehension. “Among ranked National Universities, the average cost of

tuition and fees for the 2019–2020 school year was $41,426 at private colleges, $11,260 for state

residents at public colleges and $27,120 for out-of-state students at state schools, according to

data reported to U.S. News in an annual survey” (Powell). The cost of universities is a deciding

factor for students when making a choice on where to attend and will directly lead to the amount

of debt they have in the future. In John Edison’s article he found that 1 in 5 millennials still live

at home with their parents and 86% of them want to own their own home. If college costs were

decreased, it could open doors for students who don’t have a lot of savings or have a lower

income and still want to have choices on where they can attend without having to limit their life

choices.

There are substantial facts and statistics that show the increase in college student loan

debt and the struggle it causes students. But equally impactful are the personal statements like

the examples from The Christian Science Monitors article “College debt is devastating grads.

Read their stories to understand why.” Gina Armer with a Ph.D stated that her monthly $500

debt payment restricts her from owning a house, or getting a new car. She is 62 years old, her car

is over a decade old, and she has worked her whole life and still has debt payments. Student loan

debt is not easily paid off in a few years. Debt can follow you throughout your life and restrict

your lifestyle substantially even when you are older. Nicole Filizetti explains her and her

husband’s experience with debt. “Both my husband and I left college with a large load of debt,

and then added to it over the years with additional degrees. We’ve been paying since 2000 and
 Scheible 3

now, at age 41 and 45, we still owe over $15,000. Neither of us has ever had particularly well-

paying jobs. This debt has definitely affected our lives negatively and will affect our children”.

This shows that multiple degrees and years of school does not necessarily mean a good, well-

paying job. As well, getting married, having kids also contributes to the accumulated debt and

therefore extends how long it takes to pay it back, and can even affect your children’s lives and

futures. Casey Clarke from Meridian, Mississippi left school with $64,000 of debt. Because of

her teaching job she took out a 30-year loan to be able to make payments. Her husband and

herself hoped to be accepted by the Public Service Loan Forgiveness program but were one of

the thousands who were denied for unknown reasons. Casey’s story shows that finding ways to

pay back loans is harder than just applying for a program. It takes years, lots of money and the

help of organizations and programs that accept your application to pay off substantial amounts of

student debt.

It can be difficult for students to save money while also attending university. Although

many students have part time jobs which can provide some funds, it is near impossible to have a

full- time job while also being a full-time time student. The average part time job pays between

$8 and $16 an hour and more often than not the earnings go to current expenses such as rent and

groceries and not to savings for the future. Further, college is a full-time job, adjusting from high

school to college can be a major life change for students. The course load increases, you could be

living away from your parents for the first time, have to make new friends and start your life and

career and adding a job on top of that can be stressful. Students who do not work during school,

will not have enough savings after graduation to support themselves, even less to pay off student

loans.
 Scheible 4

Lowering college universities tuition could defer students from dropping out due to cost

and debt. “College dropouts earn, on average, $21,000 less per year than their college graduate

counterparts” (Bustamante). A majority of college dropouts indicate they did so because they

found it difficult to balance work with school, or they were not getting their money’s worth at

their school. “40% of college drop-outs have a 3.0 GPA or higher” (Bustamante). Indicating that

college dropouts have the grades to advance but finances and working to pay for school can get

in the way, leading to dropping out. Not many people avoid college because they do not want a

higher education or access to more and better jobs, they avoid it because of the cost and the

debilitating future debt. 

Students who dropout of university have a quadruple risk of defaulting on student loans,

and frequently underestimate the amount they owe to the school after leaving. Lowering the cost

of college expenses could encourage students to stay in and finish their schooling. Further it

could even encourage students to try for a higher degree, graduate schools, medical schools and

stay in school even longer.  The pressure to go to college continues to increase as universities

fight to gain the attention of students and athletes to join their school. Lowering the cost of

tuition, would be one less pressure for students to deal with when making this difficult decision

that will affect their future.

 The majority of students cannot pay for college with savings alone. Almost all students

acquire loans, scholarships and or grants to help pay for or put off paying for college expenses.

While these student loans are helpful at the time, the interest collected on them and the cost of

holding off payment after graduation can increase the balance that is due. In the article “When it

Comes to Paying for College, Career School, or Graduate School, Federal Student Loans Can

Offer Several Advantages over Private Student Loans.” on the Federal Student Aid website it
 Scheible 5

differentiates between Federal Student, Private Student and Federal Parent Loans. “Federal

student loans are made by the government, with terms and conditions that are set by law”

(“When It Comes…”). Federal loans incorporate fixed interest rates, income-based repayment

plans and usually payment is not due until after graduation or the withdrawal from school.

While, “private loans are made by private organizations such banks, credit unions, and state-

based or state-affiliated organizations and have terms and conditions that are set by the lender”

(“When It Comes…”). Private loans tend to be more expensive than other loans, have variable or

fixed interest rates and request payments during school. There are also Federal Parent loans in

which the students' parents borrows for them. This type of loan is not subsidized, has repayment

plans, has fixed interest rates and the parent can decide to delay expenses until the student’s

graduation. It is important to understand your options and which loan would work best for you

before committing to one, in order to acquire the least amount of debt later.

“Casualties of College Debt: What Data Show and Experts Say about Who Defaults and

Why.” by Lindsay Ahlman and the Institute for College Access and Success researches the

borrowing that millions of students do each year and who is at fault for its effects. It provides

graphs, statistics and defines relationships between the casualties of debt. It appeals to not only

students but any person with debt, loans or financial struggles looking to better understand their

situation. Unfortunately, after only one late or missed payment, the borrower will become

delinquent. Delinquency remains until the payment is made or repayment plan is enforced.

Missing payments for 3 months will result in a lower credit score and after 270 days a borrower

defaults, which is the worst outcome for borrowers. Becoming default means the entire balance

including interest is due immediately. If students cannot afford to pay for incremented loans

payments, they definitely cannot pay for the entire balance they owe from college at once. 
 Scheible 6

What makes universities so overpriced? “There are a lot of reasons-growing demand,

rising financial aid, lower state funding, the exploding cost of administrators, bloated student

amenities packages” (Best Schools). College universities are supposed to be a whole life

experience, not just an academic facility. State of the art centers, advanced gyms, elaborate

artwork and buildings, dormitories and dining halls all contribute to the rise in cost. The salaries

of professors, assistants and other staff also contribute to the cost of college but not as much as

you would think. As stated by the New York Times, “Salaries of full-time faculty members are,

on average, barely higher than they were in 1970.” Universities need to pay staff and professors,

feed and house students, clean and provide upkeep for academic buildings, dormitories, and

dining halls, provide scholarships to students, and much more that contribute to the cost of

college.

Some argue that the cost of college justifies the opportunities and higher education it

provides. The facilities, programs and amenities on campus need lots of funding from tuition to

run. “Career earnings for college graduates are 71% to 136% higher than those of high school

graduates” (“Pros &...”). Only a few jobs require solely a high school diploma, while the

majority require a degree from college. It is important to have a good paying job to be able to

provide for yourself and your family. On average a college graduate makes half a million dollars

more throughout their life than a high school graduate. But for many people, ending up with

extreme debt that will take years to pay back is not worth the chance of a better job. With this in

mind, there are other options beside a typical university.

Unfortunately, there is a stigma surrounding people who cannot or choose not to attend

college or a higher education past high school. The belief that if you do not go to college, you are

choosing a life of poverty or bad choices. When in reality there are other options beside college
 Scheible 7

that can be more cost effective.  Such as trade schools, vocational or technical schools and

certifications that can lead to great careers. Hair stylists, electricians, construction workers,

plumbers and welders are common jobs that all need real life work experience “The National

Center for Education projects enrollment at postsecondary institutions, including trade schools,

to increase to 17.2 million by 2028” (Writers). Further, the cost of a bachelor's degree is

significantly more expensive than trade school costs. Trade schools can take only two years to

complete while bachelor’s degrees average four years. Trade schools and traditional universities

offer scholarships and typically set their own admission requirements that frequently do not

require SAT or ACT scores. Graduates of trade schools will earn accreditation and certificates

that will help them advance in their profession without college or college student loan debt. 

If colleges were to dramatically cut costs, someone would have to pick up the slack and

cover the unpaid balance to keep the school running. The most common solution would be

increasing taxes. “Past federal attempts to increase higher education affordability-contributed to

non-transparent pricing and fueled rising prices” (Rhine). Free college would transfer the burden

to taxpayers. Government funded college would just hide the rise in prices, not fix the problem.

It is extremely hard to determine what college will truly cost you when you first become

admitted. “Prospective students and their families must face the daunting task of combining

colleges’ listed price, possible institutional scholarships, government grants, loans, work study,

and more to determine the true price” (Rhine). As well, colleges ‘price discriminate’ using the

family’s earnings and ability to pay, which determines financial aid. More accurate pricing,

cutting unnecessary costs, and lowering tuition will provide students with more clarity of the

debt they will be accumulating, while completely free college would just hide the issue.
 Scheible 8

In conclusion, college is an academic and life experience that can grant access to better

opportunities and jobs. But the staggering increase in college costs are deferring students from

starting and finishing school. Lowering the cost of tuition would decrease the number of students

who drop out, encourage lower income students to attend and allow students to stay in school

longer and achieve higher degrees. Although, creating completely free college, while intriguing,

would worsen the debt issue, by hiding costs from students and increasing taxes for Americans.

Exorbitant expenses from colleges can be reduced by avoiding spending money on excessive,

unnecessary items and being more financially conscious of the debt issues millions of students

face. Because of the accumulated debt increase and the effect it has on their futures, the most

obvious remedy is to lower the cost of attending universities. Reducing college expenses would

encourage many more people to attend and would grant them access to all the opportunities

including better jobs, a higher salary and more life experience that a college degree can offer.

Image from BostonGlobe.com article

Works Cited

Ahlman, Lindsay, and Institute for College Access & Success. “Casualties of College Debt: What Data

Show and Experts Say about Who Defaults and Why.” Institute for College Access & Success,

Institute for College Access & Success, 1 June 2019. EBSCOhost,

search.ebscohost.com/login.aspx?direct=true&db=eric&AN=ED598246&site=eds-live

Best Schools. “Why Is College So Expensive?” TheBestSchools.org, Thebestschools.org, 23 Mar. 2020,

thebestschools.org/magazine/why-college-expensive/.

Bustamante, Jaleesa. “College Dropout Rate [2020]: by Year + Demographics.” EducationData, 6 Nov.

2019, educationdata.org/college-dropout-rates/.

“College Debt Is Devastating Grads. Read Their Stories to Understand Why.” The Christian Science

Monitor, 2020. EBSCOhost, search.ebscohost.com/login.aspx?

direct=true&db=edsggo&AN=edsgcl.611400532&site=eds-live.

Fay, Bill. “Student Loan Resources: Financial Aid & Loan Debt Management.” Debt.org, 1 Apr. 2019,

www.debt.org/students/.

Lesser, Eric P. “Massachusetts Needs a Student Loan Bill of Rights - The Boston

Globe.” BostonGlobe.com, The Boston Globe, 1 Mar. 2019,

www.bostonglobe.com/magazine/2019/03/01/massachusetts-needs-student-loan-bill-

rights/dJBbRTdYR3k1LQWPaUcqnO/story.html. Google Image

Nearly 40% of Gen Z Heading Back to School With Saving for Future Student Loan Repayment Their

Top Priority.” PR Newswire, 2019. EBSCOhost, search.ebscohost.com/login.aspx?

direct=true&db=edsgbe&AN=edsgcl.596483110&site=eds-live.
 Scheible 10

Powell, Farran, and Emma Kerr. “What You Need to Know About College Tuition Costs.” U.S. News &

World Report, U.S. News & World Report, 18 Sept. 2019, www.usnews.com/education/best-

colleges/paying-for-college/articles/what-you-need-to-know-about-college-tuition-costs.

“Pros & Cons - ProCon.org.” College Education, 8 June 2020, college-education.procon.org/.

Rhine, Russell. “Free College Will Hike Costs for Taxpayers and Make the System More

Opaque.” Cato Institute, 5 Sept. 2019, www.cato.org/publications/commentary/free-college-will-

hike-costs-taxpayers-make-system-more-opaque.

“When It Comes to Paying for College, Career School, or Graduate School, Federal Student Loans Can

Offer Several Advantages over Private Student Loans.” Federal Student Aid,

studentaid.gov/understand-aid/types/loans/federal-vs-private/.

Writers, Staff. “Trade School vs. College: Which One Is Right For You?” AccreditedSchoolsOnline.org,

AccreditedSchoolsOnline.org, 5 June 2020, www.accreditedschoolsonline.org/resources/trade-

school-vs-college/.

 require a
college degree