From a recent CNBC.com piece about the rising costs of college education and the growing discomfort with escalating debt and reduced public financial support for colleges and universities. The reduction in public funding has driven tuition and fees at private four-year schools up 54 percent and up 71 percent at four-year public schools – all over the last decade.
“One of the biggest things we have seen is the disinvestment from states and this has been particularly problematic for public institutions,” said Megan McClean Coval, vice president of policy and federal relations at the National Association of Student Financial Aid Administrators.
Unfortunately, one effect that will exacerbate this problem in years to come is that students and their families are raising the rate of borrowing to cover these increases – putting off the problem over how to pay for college into the future.
“Lowest-income students are the hardest hit but the effects of more expensive education are creeping up the income spectrum,” Miller said.
“At some point we will see the breaking point,” Franke said. “As of now, we are still coming to the conclusion that college is still worth it but if we continue this path, that is going to change.”
The top concern shared by parents and students today? Paying for college and the resulting debt burden — with all of that accumulating interest. Just a decade ago the top concern was more academic – not getting into their first-choice school. Even for those who borrow and manage to complete degrees, in spite of the odds, 57 percent of students regret taking out as many loans as they did.
#AffordabilityMatters
