News / Economy

Soaring College Costs Prompt Concern From Students, Economists

Soaring College Costs Prompt Concern From Students, Economistsi
X
June 11, 2013 8:28 PM
Washington's Republicans and Democrats are haggling over how to finance higher education, including details like the interest rates that students pay for loans. Recent graduates, who are burdened with an average of $26,000 in loans, are watching the debate closely. But some economists say the real issue is controlling the soaring cost of college at a time when post-secondary schooling is crucial to getting a good job and a middle class salary. Experts tell VOA's Jim Randle that these high costs are hurting the whole economy, not just students and their families.
Washington's Republicans and Democrats are haggling over how to finance higher education, including details like the interest rates that students pay for loans. Recent graduates, who are burdened with an average of $26,000 in loans, are watching the debate closely. But some economists say the real issue is controlling the soaring cost of college at a time when post-secondary schooling is crucial to getting a good job and a middle class salary. Experts say these high costs are hurting the whole economy, not just students and their families.

Joshua Jordan earned a doctorate degree in physical therapy. He hopes to open his own practice someday, and says having the expensive graduate degree is good for his patients - but hard on his wallet.  

“I am currently in debt for $210,000,” he said.

Jordan's loans are eight times larger than those of the average student. He says it might take him 20 years to pay them off, and he sometimes has had to work two jobs concurrently to meet his bills.

For the past 30 years, college tuition has been going up at twice the rate of inflation, and private colleges now charge an average of more than $30,000 a year.   

Universities say they're caught between record-high enrollments, a workforce of professors who have the skills to find work elsewhere if they are not well paid, and falling financial support from state governments.

Terry Hartle speaks for The American Council on Education which represents thousands of colleges and universities across the United States.

"It’s a terrible conundrum that we face as a country. We want more and more post-secondary education. We want more focus on academic quality and graduation. At the same time, the funding sources for higher education have been diminishing for a generation," said Hartle.

While these students made it to graduation, experts worry the high cost of college makes it less likely that bright students from poor families will attend college, depriving the economy of some of the scientists, engineers and others who could help boost growth.  

And a survey shows that some students concerned about repaying thousands of dollars in loans are putting off marriage, children, and the major purchases that usually go along with forming a family.  

Peter Mazareas, who is with the College Savings Foundation, said, "These students will not contribute to the economy. They will go home and live at home. They won't buy cars. They won't invest in housing, so there is a real multiplier effect that is short term."

Georgetown University Labor Economist Anthony Carnevale said the current system is unsustainable for families and cuts economic growth for the whole country.

"The effects on economic growth [of failing to produce post secondary talent] are substantial. If we had kept up with demand for post secondary talent, economists estimate that we would be at about $500 billion more per year in gross domestic product, that is people would have more money to spend. There would have been a higher productivity rate," said Carnevale.

Meanwhile, Jordan said his family is not wealthy and could not have paid for so many years in so many colleges on the way to a PhD.

“There would have been no way I could have created a career for myself that I wanted to do without the use of student loans,” he said.

So for him, it is worth it.

You May Like

Photogallery Americans Celebrate Thanksgiving With Feasts, Festivities

Holiday traditions include turkey dinners, 'turkey trots,' American-style football and New York parade with giant balloons More

Video For Obama, Ferguson Violence is a Personal Issue

With two years left in term, analysts say, president has less to lose by taking conversation on race further More

Video Italian Espresso Expands Into Space

When Italian astronaut Samantha Cristoforetti headed for the ISS, her countrymen worried how she would survive six months drinking only instant coffee More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violencei
X
Lenny Ruvaga
November 27, 2014 7:05 PM
The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violence

The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video For Obama, Ferguson Violence is a Personal Issue

Throughout the crisis in Ferguson, Missouri, President Barack Obama has urged calm, restraint and respect for the rule of law. But the events in Ferguson have prompted him to call — more openly than he has before — for profound changes to end the racism and distrust that he believes still exists between whites and blacks in the United States. VOA White House correspondent Luis Ramirez reports.
Video

Video Online Magazine Gets Kids Discussing Big Questions

Teen culture in America is often criticized for being superficial. But an online magazine has been encouraging some teenagers to explore deeper issues, and rewarding their efforts. VOA religion reporter Jerome Socolovsky went to this year’s Kidspirit awards ceremony in New York.
Video

Video US Community Kicks Off Thanksgiving With Parade

Thursday is Thanksgiving in the United States, a holiday whose roots go back to the country's earliest days as a British colony. One way Americans celebrate the occasion is with parades. Anush Avetisyan takes us to one such event on the day before Thanksgiving near Washington, where a community's diversity is on display. Joy Wagner narrates
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8012
JPY
USD
117.52
GBP
USD
0.6346
CAD
USD
1.1249
INR
USD
61.875

Rates may not be current.