It's no surprise that college prices have risen by a lot in the past few decades. In fact, the average yearly cost of a university has risen from $4,885 in 1985 to $23,385 in 2017. This rise is significant, even when you account for rising costs from inflation. The trend holds between public and private universities and two and four-year institutions. At this rate, tuition will continue to rise until it's almost unaffordable, if it isn't already. It's clear that college is getting less affordable each year, but what has made college so expensive?
The rise in public university costs
From 2008 to 2018, state funding for education fell by $7 Billion. This large cut in funding was made up for by raising tuition for students. So the cost was passed on to those attending the college, reducing access to higher education for many. In fact, the amount of funding per student is 18% less than what it was before 2008, a significant hit to students. Overall, costs for education are going up and funding is going down, making college more expensive for everyone.
General College Trends
It isn't just public universities that are getting more expensive either. Increased demand for education has led to private universities to grow and increase their tuition. Colleges are fighting with each other for the best students, so their costs have gotten higher. Schools now offer more services that they think students want and have to pay for the best professors. This has led to a rise in tuition to keep up with their rising costs.
One of the bigger issues is not everyone gets the same returns from a degree. Over 80% of people say that improving job prospects was a big reason for going to college. However, only a third of these students say that college gave them the skills and preparation for the job market. So you have people going to college, but failing to get the rising income that goes with it.
How can you make college less expensive?
Go to community College
Community colleges often have much cheaper tuition than other types of universities. Spending your first two years getting an associate's degree at a community college before moving to a 4-year university can help you save a significant chunk of money. It's estimated that a community college costs only $3,500 in tuition, while tuition at some colleges can be up to $35,000. Of course, going to an in-state public university can also lower your price tag.
Get scholarships and avoid loans
There's an abundance of tools that can help students lower their costs and avoid debt completely, including scholarships. There are a lot of scholarships out there, for every person. You can apply for some of the over $3 billion available in scholarship aid and lower your college costs.
Check out an Income Share Agreement
Another way to avoid debt entirely is through the use of an income share agreement (ISA). An ISA is a debt-free alternative to student loans. Using this, you only pay a small percent of your income for a set period of time. One of the benefits is that the payments scale with income and if you ever make under a certain minimum, you don't have to make payments. Defynance currently refinances student loans with this innovate new tool.
