Tuition Costs and Financial Stress: The Struggle for Affordability in Higher Education
BY Adrianna Chamba
Going to college can be a life-changing experience for many individuals. It marks a major phase in their lives as they transition from being a teenager to a young adult. For some, college is a time of independence, where individuals need to take full control and responsibility for their actions, which pushes them to mature and grow. However, not everything is rosy in the garden. While the emotional and social experiences of college can be amazing, the financial burden of tuition and living expenses can be overwhelming for many students and their families. As a result, the stress of financial struggles can lead to decreased performance in school and damage their mental health. Additionally, the high cost of tuition can perpetuate systemic inequalities and limit access to higher education for low-income and marginalized students. This essay delves into the multifaceted challenges that come with the increasing tuition costs, exploring historical trends, government funding issues, the recent impact of the COVID-19 pandemic, and the overall consequences for individuals and society. Proposing different solutions, the essay explores ways in which governments, higher-ed institutions, and students can collaborate to enhance the accessibility and affordability of higher education.
Through the years, tuition costs have skyrocketed while the wages for young adults have remained almost the same, making it barely possible for some students to pay for college. About 60 years ago, paying for college wasn’t as expensive as it is today, and the gap between wages and tuition wasn’t as large as it is now. As stated by Melanie Hanson in her report “Average Cost of College & Tuition”, “in 1963, the annual cost of tuition at a 4-year public college was $243, which had the same buying power as $2,372.42 in December 2022 currency values, while as of the 2020-21 academic year, $76,080 is the price of a bachelor’s degree” (Hanson). This large increase in tuition costs has led to a situation where many students cannot or struggle to afford higher education, especially those from low-income families. Additionally, the gap between wages and tuition has increased, leading to a situation where young people are forced to have big debts in order to access college/university. According to an article by Abigail Johnson Hess for CNBC, “college costs have increased by 169% over the past four decades — while earnings for workers between the ages of 22 and 27 have increased by just 19%” (Hess). This has significant implications for the financial future of young adults, who may struggle to pay off their debts and make important financial decisions such as buying a house or starting a business. To rectify funding challenges, there is a need for a more comprehensive approach. Governments and Higher-ED institutions should recognize the pivotal role education plays in shaping the future workforce. The result of the expensive costs of going to college is that it perpetuates systemic inequalities, blocking access to higher education for low-income and marginalized students, who are most likely to have a brilliant future, and we risk hindering economic growth and progress.
The decrease in government funding for higher education has contributed to the financial stress of college students, as well as a decrease in the quality of their education. As stated by Michael Mitchell et al., in the article “State Higher Education Funding Cuts Have Pushed Costs to Students, Worsened Inequality”, “Overall state funding for public two- and four-year colleges in the school year ending in 2018 was more than $6.6 billion below what it was in 2008 just before the Great Recession fully took hold, after adjusting for inflation” (Mitchell et al.). Not only does the decrease in funding affect the economy of students, but it also has an impact on their academics and the finances of those who are involved in the institutions. George Roche, former president of Hillsdale college, mentions in his article “How Government Funding Is Destroying American Higher Education” that “Concerning the academic crisis: Colleges and universities have increasingly adopted a “cattle car approach” to education. Classes crammed with 500 to 1,000 students are now commonplace. And many colleges have drastically reduced the number of classes they offer. The University of Wisconsin has been known to close courses in the first hour of registration—even for seniors in their major field of concentration. At the University of Texas, nearly 1,000 students were turned away from a required English course.” (Roche). By reducing the funding of Higher ED, governments not only make getting a bachelor’s degree inaccessible for some students but also may decrease the quality of education for those who attend college. The decrease in funding has obliged some colleges to reduce the number of members in their faculties and to accept more students in their institutions. By not having enough professors to teach, universities are forced to reduce the number of classes in their catalogs and to have very crowded classrooms. This leads to students not being able to communicate clearly with the professors. In addition to the impact on students and faculty, reduced funding can also lead to cuts in critical services and resources for students who need special accommodations to learn effectively.
The decrease in government funding for higher education has had a profound impact on students, but the onset of the COVID-19 pandemic has further amplified the financial struggles for college students. Students are facing more significant financial and academic challenges than ever before, causing havoc on their mental health. According to a study cited in the Journal of Affective Disorders, “among several factors affecting students’ life satisfaction due to quarantine were academic performance decrease and financial difficulties. The latter is possible, as students may be concerned about their capacity to complete their education. Many family members have lost jobs or had their salaries considerably reduced, making it impossible to support other family members and their children’s education” (qtd. in Kokkinos et al., 290). The pandemic caused numerous businesses to shut down, leading many individuals to lose their jobs, and a slow down in the economy. Consequently, everyone and everything was affected by the coronavirus, especially the economies of families, who had already struggled financially before what happened and had to give up other expenses to cover their primordial necessities. Many students lost their part-time, and full-time jobs, or internships, causing a rise in their struggles to pay for their living expenses and academic fees. Also, because of the quarantine, educational institutions had to stop meeting in-person, and look for other alternatives, such as remote learning, to keep giving their services to students. Unfortunately, some students could no longer afford their higher education studies due to the decreasing number of jobs and unaltered tuition, pushing them to drop out. The shift to remote learning also posed challenges, including connectivity issues, lack of interest from students, and other factors, making it challenging for students to acquire all the knowledge they needed. Furthermore, the pandemic caused a lot of isolation, anxiety, and uncertainty in students, resulting in decreased academic performance and lack of interest in their social life. It’s crucial to understand that the pandemic didn’t create these challenges but rather magnified already existing issues. The economic fallout intensified the burden on students who were already struggling with paying tuition, making higher education even more out of reach.
In today’s fast-paced and ever-changing economy, despite the availability of resources and information, lack of financial literacy is an issue that contributes to stress among college students, as many individuals struggle to manage their finances effectively. A survey conducted by EVERFI, with a sample of over 30,000 college students from more than 440 institutions in 45 states, found that only 53% of students feel prepared to manage their money (EVERFI). This lack of knowledge is often due to the fact that students are not taught how to navigate the complex world of loans, credit cards, and, most important, budgeting during their high school years. As a result, young people who are experiencing independence for the first time are prone to make incorrect financial decisions that can have a lasting impact on their economic well-being. College can be a stressful and expensive time, especially with living expenses to consider, and not knowing how to manage finances can maximize these challenges. A lack of financial resources can make students feel overwhelmed and unable to make ends meet, causing stress and affecting their academic performance. Without the necessary financial skills and knowledge, students may struggle to concentrate on their studies, affecting their future educational and career opportunities. In order to address this issue, schools should introduce financial education programs for high school students. These programs can help students transition from being teenagers to young adults who are navigating the real world for the first time on their own.
Many students and their families struggle to afford the expenses associated with college, leading to a long-term financial burden after graduation and preventing others from attending university. As mentioned before, the soaring costs of accessing college can have a detrimental impact on those pursuing higher education. In his article “Student Debt and Higher Education Risk,” Jonathan D. Glater notes that, “Students may choose to forgo higher education to avoid indebtedness. Indebted students may try to limit their borrowing by working more while in school and, with less time to study, may perform worse in their classes. Indebted graduates may also be constrained in their choices of careers, and student borrowers who do not complete a course of study may suffer great financial hardship.” (Glater, 1563). Some students choose to work one or two part-time jobs, or even more, to alleviate the costs of college. However, these situations leave students with no time for themselves or their academic responsibilities, leading to a cycle of self-neglect that can be detrimental to their mental health. As mentioned before, not having time can also affect academic performance as it may not be a priority to study, complete homework, or participate in extracurricular activities. Failing to meet educational responsibilities can result in repeating classes, which can be costly. Moreover, acquiring long-term financial responsibilities can significantly impact how future professionals make life choices. Rather than making decisions based on their best interests, such as investing in a business, purchasing a home, or starting a retirement fund, students may have to prioritize paying off their significant debt.
Even though the affordability issue that concerns college students affects society in general, it is even harder on those who come from long-time segregated communities. As mentioned by Dalie Jimenez and Jonathan D. Glater in their “Student Debt is a Civil Rights Issue: The Case for debt relief and Higher Education Reform” publication, “While debt puts higher education within reach, it also limits opportunities for members of subordinated groups, effectively restricting access to higher education by discouraging and burdening borrowers. The necessity of borrowing shuts marginalized people out of both the opportunity to learn and the opportunity to secure the benefits of higher-earning jobs, prestige, the possibility of wealth accumulation to the benefit of their children, and the greater likelihood of assuming a leadership role in society.” (Jimenez and Glater, 141). This situation highlights a social justice issue, as historically marginalized individuals find themselves at a significant disadvantage due to the rising expenses associated with pursuing higher education. The financial burden that conveys student debt affects the most, those who come from marginalized communities, as they not only may have less access to economic resources but also are minorities with less social capital and sometimes even are in stumbling migratory status to help them navigate the complicated financial aid system. The inability to afford college can perpetuate cycles of poverty and segregation, which limits upward mobility. It is necessary that higher education institutions and governmental entities address these issues and create solutions to ensure that everyone can access a higher level of education, regardless of their race, social status or economic background. Addressing this issue will create a more equitable society, where everyone has the same opportunities to strive.
Inaccessible higher education fees affect not only the students but also society in general, as students who have college degrees tend to be more likely to compete in a global economy. In the report made by Leah Jackson Teague, “Research indicates that a strong system of higher education is a significant contributor to the country’s ability to compete in the global marketplace and is critical to our economic strength, social well-being, and position as a world leader” (Teague, 1). If the individuals that constitute a country are not capacitated and skilled enough to be able to participate in a worldwide scale, then the country won’t be able to launch itself to an international marketplace or be part of important conversations with other countries. Not only the lack of support for individuals pursuing higher education can have repercussions beyond a country’s international presence, but it can also impact the economic prosperity of its citizens. In today’s world, higher-level degrees are required to work in median-to-high-salary jobs. Those who don’t obtain college degrees are prone to earn low-to-median salary jobs. Higher education is another step that individuals must take to become well-rounded citizens who contribute to their communities. Therefore, private and public institutions that have the power to change things around should make a top priority, making higher education much more accessible and affordable. By doing this, the future of talented individuals is ensured, and the financial burden/stress can be to some extent alleviated. Additionally, diversity, equality, and inclusivity are promoted, as more students will be able to attend college.
Opponents argue that higher education prices are necessary to maintain the level of quality of the universities due to factors like inflation. An example of this is the raise of tuition at Fordham University by 6%. Quoting an email sent by the president of the University, Tania Tetlow, “Just as inflation has hit all of you, so has it continued to increase our costs at Fordham. We are working hard to control those costs by making cuts that do not impact the quality of your education. But we also find it necessary, as many universities have and will, to raise tuition more than in our recent past.”(Tetlow). Fordham University, like many others, has had to increase their educational fees to keep up with the rising inflation without harming the learning experience and well-being of its students, as well as responding to the demands of their employees. Along with the rising tuition, some universities also implement a raise in their aid packages. For this reason, opponents believe that having high costs to attend college is necessary to keep up with a good education and that it is totally acceptable because aid is also raised. While this statement is true, the link between higher prices and better education is not always consistent. Some of these institutions tend to raise the prices but not improve the level of education and quality of facilities or respond to their staff. There are many opportunities to pursue higher education that are relatively cheaper than others and still provide good education and outcomes for their students. It is important not to forget that having skyrocketing tuition costs can also have drawbacks. Many students would be excluded from having the chance to attend these institutions, even with aid packages, or maybe found in circumstances where they have to deal with enormous amounts of debts that damage their financial stability and quality of life.
Reflecting on the main argument, even though there are several challenges with the struggle to afford higher education, there are still solutions that can be taken in order to improve the situation. The Government should increase its funding in higher education as it invests in future generations and economies. As of now, based on a report by Paul Taylor et al. published by the Pew Research Center, “75% of adults say college is too expensive for most Americans to afford.” (Paul Taylor et al, 1). Governments should redirect part of their budgeting to funding the cost of higher education for the students who need it. As stated in a report by Silvia Allegretto et al. issued by the Economic Policy Institute, “increased federal spending on education after recessions helps mitigate funding shortfalls and inequities. And, increased spending on education could help boost economic recovery” (Silvia Allegretto et al., 2). By decreasing funding for higher education, governments not only limit access to higher education for students but also harm the long-term economic health of the country. Giving students the power to acquire skills and knowledge exacerbates the chances of a country having individuals with revolutionary ideas. Having a workforce that is well-rounded and skilled is necessary to be innovative and to strive for growth. It is essential that governments increase their funding for higher education and work to ensure that institutions can provide a high-quality academic experience that does not exclude any individuals based on their race, gender, or economic resources in order not to lose any human capital.
Higher education institutions should start reaching out to organizations and industry partners to collaborate with them in the creation of new jobs and internships for students. As stated by Sacha Litman et al. in the article “How Higher Ed and Employers Can Partner to Power Talent Pipelines”, “Only 36% believe that higher-ed institutions give their graduates adequate training” (Litman et al.). This number shows the need for the creation of relationships between higher education institutions and employees to help ensure a successful future for their students. Quoting the same article used before, “Partnerships between higher education institutions and employers can be invaluable for helping businesses respond to growing talent needs. They can offer employers a reliable way to cultivate an educated and trained workforce. They can cut employers’ training costs. And they can improve productivity as well as retention. At the same time, they can help states and regions become more competitive” (Litmanet al.). By giving students the opportunity to access the professional world, through internships, and other work-learning opportunities, students not only can start building their resumes, network, and knowledge that complement their education but also start earning money. These solutions can help justify the higher tuition costs for those who cannot afford the whole cost of assisting to college, by ensuring that students receive valuable learning opportunities that lead to good career prospects.
The soaring costs of higher education mean great challenges, affecting individuals, society, and the country’s economic development. Even though there are arguments in favor of maintaining the costly educational fees because of inflation and quality reasons, the reality is that keeping tuition at a high price level only makes it unaffordable for students of different backgrounds to pursue a college degree. Students stagnating with high school degrees can negatively impact their future and the future of their countries. Students without higher education degrees usually tend to have a lower quality of life due to the fact that are paid to barely survive, while those who choose to pursue higher education and acquire debt may get better-paid jobs but, have to hold a financial burden for many years, that will only hurt their future prospects. Countries will also be endangered since if individuals decide not to attend university because of the price and don’t get the proper education, the pool of skilled workers will be limited. It is important that the government makes higher education its top priority. By investing in education, the government can help pave the way for a more equitable and competitive society and create a more equitable environment where all students have the opportunity to reach their full potential and contribute to the growth and development of their country, empowering future generations.
Works Cited
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Hess, Abigail J. “The gap in college costs and earnings for young workers since 1980.” CNBC, 2 November 2021, https://www.cnbc.com/2021/11/02/the-gap-in-college-costs-and-earnings-for-young-workers-since-1980.html. Accessed 21 April 2023.
Jimenez, Dalie, and Jonathan D. Glater. “Student Debt Is a Civil Rights Issue: The Case for Debt Relief and Higher Education Reform.” 2020. HARVARD CIVIL RIGHTS – CIVIL LIBERTIES LAW REVIEW, vol. 55, no. 1, Harvard University. Law School, 2020, pp. 131–198, https://search.informit.org/doi/10.3316/agispt.20200923037173.
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Teague, Leah. “Higher Education Plays Critical Role in Society: More Women Leaders Can Make a Difference.” ERI, ERIC, 2015, https://files.eric.ed.gov/fulltext/EJ1091521.pdf. Accessed 21 04 2023.
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About the Author
Adriana Chamba is an international student from Ecuador and a sophomore at Fordham University’s Lincoln Center. She is majoring in Global Business with a minor in Music. Currently, she holds the position of Vice President at the Alexander Hamilton Society chapter on campus, where she engages in intriguing discussions. She loves music and she aspires to have a career path within the industry.