The Cost of College in 4 Minutes

I’m a lucky guy. I didn’t do so well in high school and didn’t
meet the requirements to go to university right off the bat. Instead, I went to Community College, lived
at home, worked a part time job, and saved a sh*t load of money. Afterwards I went to a public University and
saved even more money. I graduated during a huge recession without
debt thanks to my privileged circumstances which allowed me to think less about the money
I’d earn after college and more about my interests. That being said, tuition to even state Universities
has increased dramatically since I graduated – making the once realistic American dream
seem a distant memory for many of us youngsters. Hello everyone. Today we’re going to explore the topic of
why in recent years college has become so expensive. Just how expensive is college? The website states that one
year at a public University will cost on average roughly $25,000 while at a private University
it will cost $50,000. This hasn’t always been the case. From 1984 to 2014 tuition for public universities
has increased 225%. And to make matters more daunting, only 19%
of students actually graduate at a “4” year university within 4 years – making
the majority graduating within 5 or 6 years. And while tuition goes up and it takes longer
for students to graduate, on average it takes longer for college grads to earn back what
they’ve spent on tuition which on average is at 36 years old. Moreover college grads has been earning less
and less over the past 10 years while the cost of college is skyrocketing. But why? High education is just like a business. In fact some say that the U.S. Department
of Education makes $15 billion dollars in profit from student loans every year. If students stopped taking out loans and going
to college, our economy might just collapse. Universities want to attract students, just
like businesses want to attract customers. To do this need to hire the best professors
who can conduct research in the most up to date and technologically advanced labs. This is not cheap. The average salary for a professor is $100,000. A lab? Probably a lot more expensive than that. Universities also need to have beautifully
built campuses. Again not cheap. Not only do the buildings need to be architecturally
aesthetic, but the grounds need to be taken care of and the buildings maintained. Universities also must have attractive amenities
like career services, health centers, and even psychiatric availability. All of this costs a sh*t load of money and
creates a load of competition between the universities. Consider it like an arms race education style. But that’s not all. In order to pay for such expenses, universities
create high tuition and use financial aid to help those who can’t afford it on their
own and take as much as possible to those that can afford it. This is called the Bennett Hypothesis – our
government provides loans and financial aid to students, and colleges get their money
whether it’s from students who take out loans, get financial aid, or can pay for it
out of pocket. If schools know that students have more money
to spend, they can raise tuition, and make their campuses more attractive to potential
students, which causes more competition between schools. So when the government is providing subsidies
for its citizens to go to college –there is more demand for education now that more
and more people can afford to go to college – and this in turn encourages colleges to
charge more for education and they can increase their marketability by spending that money
on professors, campus beautification or improved amenities. The real question however is – is college
worth it? That I cannot answer. But I will say that going to college has made
me widen my perspective and allowed me to pursue ideas that I probably wouldn’t have
if I had not gone. College is about your education and an investment
that will last you a lifetime. The only answer I can give you is to think
about what you are passionate about and do it. If you don’t need a college degree to pursue
your passion, don’t go. But if you think college will enrich your
life and help you obtain mastery in your passion, then go.

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