American higher education is at a crossroads. The cost of a college education has made people question the benefits of receiving one. We asked Goldie Blumenstyk, author of American Higher Education in Crisis? What Everyone Needs to Know to help us separate fact from fiction.
True or False? It doesn’t pay to go to college.
False: Generally speaking, college is still worth the money in the long run. According to the latest figures from the College Board, the median earnings for a person with a bachelor’s degree was 65% greater than those for someone with just a high-school diploma over a 40-year working career. Those with associate degrees, typically earned in community or technical colleges, had earnings that were 27% higher. What’s more, the job market of the future will continue to offer more opportunities to those with post-secondary education. By 2020, experts predict two-thirds of jobs will require at least some education and training beyond the high school level. Forty years ago, only about 28% of jobs required that higher level of education.
It costs hundreds of thousands of dollars to go to college.
False: While there are colleges that charge upwards of $50,000 a year for tuition, room, and board (at least 175 of them, counting the half-dozen or so public universities that charge their out-of-state students that much) most colleges cost a lot less. Last year half of all four-year public-college students attended an institution where the annual in-state tuition rate was below $9,011. Some 85 percent of them attended a college where tuition charges were below $15,000. Private colleges charge more but with student aid from the federal and state governments and the colleges themselves, the price students actually pay is often substantially lower than the “sticker price.” Last year the average “net price” at a four-year private college was $12,460. And the average tuition at community colleges, where about four out of ten undergraduates now attend college, was about $3,300 a year.
Student debt is unmanageable.
True (and False): About 40 million Americans now carry student-loan debt and for many of them, particularly recent graduates struggling to get established in a tough job market, student-debt burdens are a real challenge. That’s evidenced by the rising rate of defaults on student loans. But according to the latest data from Project on Student Debt, for students graduating from college with debt, those who attended four-year public colleges had an average debt burden of $25,500. For comparison sake, a new Ford Focus automobile costs anywhere from about $17,000 to $35,000, depending on the options. The average debt level for graduates from four-year private colleges was $32,300. About 40% of student debt is for balances smaller than $10,000, according to the College Board.
Of all the factors that have propelled college prices up faster than the costs of most other goods and services over the past for 40 years, the cost of all those tenured professors isn’t one of them.
True: Actually, while college costs have been rising, the proportion of faculty members who are tenured professors, or on track to be considered for tenure, has shrunk precipitously during the same period. In the mid-1970s according to the American Association of University Professors, about 45% of all faculty members were tenured or on the tenure track; today only about one-quarter of them are. Full-time professors are well paid, but colleges now increasingly rely on faculty members who they hire annually, adjunct professors who they pay only about $2,700 per course, on average, and graduate teaching assistants. Meanwhile, factors that do seem to more directly drive up costs and prices include: growing numbers of administrators, new facilities, major reductions in state support, and the costs for student aid.
Online education takes place primarily at for-profit colleges like the University of Phoenix and DeVry University.
False: For-profit colleges like those were among the first to use distance education-technologies to expand their enrollments, but online education is now increasingly commonplace in more traditional public and private colleges. According to the latest available data, more than five million students — about a quarter of the student population — took at least one course that was fully or partly online in fall 2012. About half of them took a class that was exclusively online. The medium, however, still seems more popular for certain fields of study. For both graduate and undergraduate education, the most common courses and degrees offered via distance education are in business, marketing, computer- and information-technologies, and health-related fields. In the future, students can expect to see more and more classes that use distance-education technology in a hybrid format, mixing face-to-face instruction with online components.
Headline image credit: Graduation By Tulane Public Relations, CC-BY-2.0 via Wikimedia Commons