Why College Is So Expensive In America
CNBC・14 minutes read
College in America is linked with student debt, ranging from $35,000 to $350,000, over a 10-year repayment period. Various funding sources, like the G.I. Bill and for-profit schools, influence higher education and student debt challenges.
Insights
- The cost of attending college in America has significantly increased over the years, leading to a rise in student debt, with figures ranging from $35,000 to $350,000 and minimum monthly payments of $1,000, impacting students' financial stability and future prospects.
- The American higher education system encompasses various types of institutions, including public schools funded by the government, for-profit colleges funded by shareholders, and non-profit colleges like Yale funded by donors, with the G.I. Bill and college rankings playing pivotal roles in shaping access to education and influencing students' choices.
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Recent questions
What are the main sources of funding for colleges in America?
Various sources fund American colleges, including government funding for public schools, shareholder funding for private for-profits, and donor support for private non-profits like Yale.
How did the G.I. Bill impact higher education in America?
The G.I. Bill, signed in 1944, provided financial support for veterans to attend school, significantly impacting American higher education by opening doors for many who couldn't afford college previously.
What factors influence college reputations in the U.S.?
College reputations in the U.S. are heavily influenced by rankings like the U.S. News and World Report, focusing on factors such as graduation rates, retention rates, and other metrics.
What are the trends in tuition costs at American colleges?
Tuition costs at both public and private colleges have doubled since the late 80s, leading to increased student debt, with most state schools now relying more on tuition than government funding.
How has public perception of the value of a college degree changed over time?
In 2013, 53% of Americans believed a four-year college degree was worth it, but by 2017, this percentage dropped to 49%, indicating a growing skepticism towards the value of higher education.
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Summary
00:00
"Student Debt in American Higher Education"
- College in America is often associated with all-nighters, keg stands, diverse welcome brochures, Pinterest-perfect dorm rooms, and significant student debt.
- The text mentions specific amounts of student loans, ranging from $35,000 to $350,000, with a minimum monthly payment of $1,000 and an estimated repayment period of around 10 years.
- The higher education system in America comprises public schools funded by the government, private for-profit schools funded by shareholders, and private non-profits like Yale funded by donors.
- The G.I. Bill, signed in 1944, provided financial support for veterans to attend school, significantly impacting American higher education and opening doors for many who previously couldn't afford college.
- The U.S. News and World Report's college rankings, initiated in 1983, heavily influence colleges' reputations and decisions, with a focus on factors like graduation and retention rates.
- Tuition costs at both public and private colleges have doubled since the late 80s, leading to increased student debt, with most state schools now relying more on tuition than government funding.
- For-profit colleges, though a small fraction of all U.S. colleges, have higher student debt default rates, with students often facing financial challenges and limited job prospects after attending.
- Non-profit colleges, while offering financial aid and tuition discounts, still leave many students with substantial debt, impacting their financial stability and future plans.
- Many students, like Rachel Brandt and Chyna, face financial struggles and limited opportunities due to student debt from incomplete degrees or attending for-profit schools.
- Individuals like Amari Lilton, working to pay off significant student debt, emphasize the desire for a college education without overwhelming financial burdens, highlighting the ongoing challenges and complexities of the American higher education system.
14:41
"Declining faith in college's value"
- In 2013, 53% of Americans believed a four-year college degree was worth it, but by 2017, this percentage dropped to 49%, indicating a growing skepticism towards the value of higher education.
- With 65% of U.S. jobs expected to require some college education by 2020, the issue of student debt is a national crisis, prompting various solutions such as income share agreements and free tuition programs, although the debate on free college remains contentious due to concerns about its sustainability and impact on taxpayers.
