OPINION

MIKE MASTERSON: The costs of college

Is it worth it?

I should begin by saying it was the correct choice for me to earn a bachelor's degree from the University of Central Arkansas during the Pleistocene era (1971). That was 46 years ago. Today the expense of attending college, much less taking four to six years to earn a degree, keeps skyrocketing.

So I consumed with interest the recent essay by Dylan Moore writing for the website TopTenz.net. He cited specific reasons a decision to attend college nowadays should be made carefully. Titled "10 Reasons You May Actually Be Better Off Skipping College," Moore begins by saying that while some consider college a necessity, it's a different story for other young Americans.

"Too many jump into it without thinking," he writes. "... For most, it is a major investment, the biggest in their life so far." Moore says he's not advocating either way. "It's important to look at it not just as the assumed next step, but as an investment. Like any investment, you should weigh the potential reward against the costs and risks."

For instance, slightly over half who enroll will graduate in six years or fewer. "[P]eople kind of just accept the four years part. That's the story that's told to us by society, by media, by the colleges themselves. In fact, bachelor's degrees often are alternatively referred to as 'four-year degrees.'"

He contends almost half either have dropped out or haven't graduated after 6 years. By 2015, only 53 percent of the students enrolled in 2009 had graduated.

Also, the cost of college education continues to rise beyond inflation, although general inflation has halted. "And even worse," he writes, "financial aid isn't rising with it, so net prices are going up for all students, even those from low-income families."

Moore also says the U.S. Bureau of Labor Statistics shows inflation increased from 1995 through 2015 by around 55 percent, while the cost of education at in-state public universities rose by 296 percent.

"Colleges have increased their prices by a more moderate rate in the last few years, but ... [t]he net price has continued to increase because incomes and financial aid are increasing at a lower rate." In the 2015-16 school year, he says, students borrowed $104 billion, down from the 2010-11 peak of $124 billion. Altogether, our students owe $1.31 trillion, ranking second behind mortgages as the greatest cause of household debt.

Forty percent of students, representing over $200 billion in federal student loans (not accounting for private loans), can't repay their debt. If a young person winds up defaulting, the government can take money from wages, hold any tax refund and even file suit. "The average loan amount is almost $40,000, debt is higher than ever, barely half of all students graduate in six years, and it just keeps getting more expensive each year," Moore writes.

"Housing, travel, and fees also get added on top. ... [T]extbooks are an expense that cannot be avoided. At least, that's what the schools and the textbook publishers want you to believe," Moore says. "Textbooks make up a surprisingly large chunk of students' expenses. ... [T]he College Board recommends students budget around $1,200 per year for books and supplies. ... Since 2006, the average textbook cost has risen by 73 percent. That's four times faster than inflation."

Since applications to attend college have become easier, students have been applying to more of them, so colleges end up having fewer students they've accepted who actually attend, Moore writes, adding, "This makes it difficult for colleges to plan their budgets, because they aren't sure what enrollment will look like. It also makes getting accepted more competitive, and gives an advantage to wealthy students who can afford to apply to many more schools."

He concludes that point with "As long as money is a factor in who gets to go to which school, a true meritocracy is impossible."

Increasing pressures to succeed mean students feel more stressed. According to a survey, students' emotional well-being is at a record low. Also, while some 75 percent of college applicants are admitted to their top choice, less than 60 percent can afford to attend, especially out of state. The average tuition and fees of an in-state college is under $10,000, while out-of-state is around $25,000.

Then he cites the matter of a meaningful education. "Apart from the economic benefits, college is supposed to teach you critical thinking skills." However, he writes that one study found "45 percent of students showed no significant improvement in their critical thinking, reasoning, and writing skills during the first two years of school. After four years, 36 percent still showed no improvement."

Bottom line: You must determine what's going to work best for you, which might be not going at all. Viable alternatives include community colleges for the first two years, apprenticeships for those better inclined or suited for the lucrative trades and/or transportation. Others might start a business or enlist in the military until their future becomes better focused.

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Mike Masterson is a longtime Arkansas journalist. Email him at [email protected].

Editorial on 09/05/2017

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