The Benefits Versus The Cost of Higher Education

Two out of three students attend college straight out of high school. While they might be excited about being in college, as time passes they might become very anxious when they realize the cost of their education and ponder whether or not it’s worth the advantage. The parent of this student might be supplying over a quarter-million dollars before seeing a degree, wondering if it would have been more beneficial spending it elsewhere. One article, in particular, substantiates this claim. Written by Joann Weiner, a veteran write and a Senior Counsel at NYC Health + Hospitals, Do the benefits of a college education outweigh the cost? is an article published by Washington Post, 2019, shedding light on the education versus cost for college students. The article covers many topics and various types of universities with different levels of education. In accordance with the article, there are many benefits to having higher education, although it may not be affordable, we result in questioning the benefits versus the cost.

President Obama has said that “Higher education is not a luxury. Earning a post-secondary degree or credential is a prerequisite for 21st-century jobs, and one that everyone should be able to afford.” We are used to being told that in order to get a well-paying job, it is required to have a form of higher education. Even though there might be a job opportunity without the need for a college degree, it does not excuse the argument that we don’t need to go to school furthermore. “People with college degrees tend to keep their jobs during recessions and have a lower unemployment rate over time than those with just a high school degree.” Most well-paying jobs require a form of higher education degree. “The Pew Research Center found, the “big payoff” to a college degree isn’t so much in earnings but the ability to have and to keep a job.” Besides, college isn’t only about having a high income, in contrast, it is important to know there are benefits of a college education. “Studies show that people with more education are in better health, their children are in better health, and their marriages are more stable relative to people with less education.” This shows that it is important to have a higher education since you are there to learn something not just waste your money. The point of the study is not whether the college provides the graduate with a net financial advantage, but whether the college presents a net overall benefit. The Pew survey shows us that most students who graduated from a four-year college, befitted from their education, therefore formed into a more mature and intellectually individual. College has its many perks, along with having a great impact on one’s future, it teaches people skills and necessary knowledge for future job employment.

According to popular opinion, college is the way to go after graduating from high school. It is a requirement for many employment positions, and it’s expected by many to have a higher education degree. However, the financial state is not talked about, but rather overlooked. This then becomes such a problem that students are not able to attend college due to financial constraints. “It averages about $40,000 a year at a four-year, private institution and $17,000 at a four-year public institution.” When one sees these large numbers, they become overwhelmed and either decide against higher education or take out a loan which they will end up paying for many years to come. Several students sign up for numerous scholarships and grants, however, it doesn’t cover much of the overall cost. Unless a full-ride scholarship is presented to a scholar, they could take part in all financial aid presented, and still end up with debt. “Students (or their parents) may also qualify for a host of education-based tax breaks, such as the American Opportunity and the Lifetime Learning Credit, and may set aside money in tax-favored education savings accounts, known as Section 529 plans and Coverdell Education Saving Accounts, that reduce the cost of saving for college. In many cases, interest paid on qualified student loans is tax-deductible.” Even though this is available, students are still left with debt. Whether going to a private or public four-year, degree-granting universities, there is a high price to pay for education. “According to the CATC, a typical GWU student will pay a net price of $31,443 a year after scholarships and grants. That student will borrow a total of $24,050 and make $276.77 payments each month for ten years to repay the loan.” George Washington University is a private college with a forty percent acceptance rate and a seventy percent graduation rate. With a low percentage of acceptance, if a person gets in, they would have a large bill after graduation day, and that is if they graduate. One might think to go to a public university, might be a lower-cost option, but that in fact is false. “A typical student at U.C.-Berkeley will pay $16,178 a year after scholarships and grants and have $16,028 in federal loans for a monthly payment of $184.45 over 10 years.” This is the University of California, Berkeley, a public college. Once again noticed the high price and the 10 years of monthly payments. They only have a seventeen percent acceptance rate and ninety eight percent graduation rate. Now looking at yet another private institution, “For Harvard, a student will pay $14,445 a year after scholarships and grants and take out $11,000 in federal loans for a monthly payment of $126.59 over 10 years.” Harvard is a well-known private Ivy League research university, recognized for intellectual undergraduates. Some proof of that would be the graduation rate of ninety-eight percent, although some might see it to be exclusive due to their acceptance rate of five percent. Lastly, we see yet another public university considerably it’s a low-cost public institution, “A student at California State University-Los Angeles will pay $3,713 a year after scholarships and grants. That student will have the same amount of federal student loans as the Harvard student and, therefore, have the same monthly $126.59 payment.” It is possible to go to a public university for the price of a private university, but along with that comes the school’s credibility and networking possibilities. In this case, graduation is lower at forty-one percent but thus the acceptance rate is higher at sixty-four percent. This indicates the average net cost a student pays for one year at a particular college or university. As we see with all these examples is wherever one might attend a university, it is expected to come out with some kind of dept. The student would have to repay any loan borrowed to pay for the remaining expenses. A possible solution to this might be, in return for the extension of the loan repayment period and forgiving all loan amounts unpaid after that period, the Federal Government offers various 'income-driven' student repayment systems that limit the monthly payments to a certain income amount. Recently, one plan reduced monthly payments from fifteen to ten percent of the disposable income and from twenty five years to twenty years. For one of these repayment options, most federal student loans apply. Despite these efforts, some argue that these loan replacement programs represent “government bailouts of college graduates.”

It all comes down to this, are the benefits of having a college education worth the price? Some may argue that it is, whereas some might disagree. This could be seen particularly with students that have paid tens of thousand dollars to achieve a bachelor’s degree, just to be found working at a local Starbucks café. I think it depends on the person and their major. For example, if one were to get a medical degree, they would inevitably have large debts due to it. However, with the high salary being received, one could manage to pay versus one with a business degree. Nevertheless, the debt will have to be paid back with interest, which may take several years. Conversely, many obtain a higher education, not to mention the debt finding is not worth the cost. A few years ago, a survey showed that the majority of Americans suggested that, college was not “worth it” and didn’t “provide students with good value for the money they and their families spend.” This shows that college is not worth it to all, and that’s why we have a choice in the matter. Even so many don’t realize the downfall of having a college education. According to the Federal Reserve Board a recent household survey, “37 percent of respondents said that the net financial benefit of their education was negative.” Many now argue that it isn’t necessary to have a college education, arguing that it once was a prerequisite to any job, however it now different. This may be true, to some extent. Many successful individuals were, in fact, college dropouts, for example, Facebook’s Mark Zuckerberg, Microsoft’s Bill Gates, and Apple’s Steve Jobs. With many celebrities that are successful in their media influence. I would argue that most if not all weren’t intentional, and in reality, their success was due to their natural intelligence. Most famous celebrities became known by accident, and it would be foolish to strive for something that is not promised, but rather rare. I believe a college education is necessary, however, it comes with a high price that is not affordable for all. In the end, the college provides a clear net benefit, not just for the students, but for society as well.

This article reveals, although it may not be affordable, the many benefits to having higher education, might be worth over the cost. As we have seen for years, the college has been a big part of many individual’s life, and it is the reason for their success and income caused failures. However, something needs to be done about the high cost of attending. We are all told to be successful, yet simultaneously, the opportunity is taken away and being placed with a high price tag. It all comes down to the individual’s view, education and debt or the alternative.