Janet Adams is well qualified and skilled writer working with graduate as well as high school students by providing thesis writing tips online. Together with the other experienced professionals, Janet has contributed a lot in the success of the company.
The skyrocketing costs of college can lead a parent to wonder if an investment in higher education still makes sense. This is especially true when the annual cost of attending a private college can easily exceed the annual salary a graduate receives during their first few years of work.
For those parents who still have a number of years before their children reach college age, doing the math can make the dream of college sound more like a nightmare. For those within a year or two of college, the change in estimated costs can bring some major sticker shock.
Inflation generally refers to the natural increase in the cost of living over time. While no one loves inflation, it is generally accepted as a fact of life. In the broad economy, this annual increase has historically averaged about 2%. In other words, you would need $1.02 today to purchase what $1.00 bought you one year ago.
The inflation of college costs has not been so gentle, averaging 4-6% annually. In other words, a college education costing $10,000 this year, will likely increase by $400-600 next year. In a nutshell, this means that college costs are doubling every 12-18 years, compared to everything else in the economy doubling in cost every 32 years.
Why do college costs “inflate” so much faster than other expenses? Colleges need to replace technology more often than a typical family. Teachers have been historically underpaid, and are finally getting some of the raises they deserve. Lastly, insurance costs for running large institutions and businesses have risen significantly over the last 3-4 years.
One of life’s basic economic principles is that demand drives up prices. In other words, the more people want the same thing, the more that its price is likely to climb. Unfortunately for parents, this holds especially true with colleges.
The fact that more students are attempting to get a college degree allows colleges to be aggressive in how they price their tuition. They do not have to worry about scaring off a few students with high prices, because there are plenty of others willing to pay full fees. This demand is welcomed by schools since it allows them to expand their programs, add amenities, and raise staff salaries.
College costs are increasing faster than most of the other areas of life, and show no signs of slowing. For parents or students within a year or two of starting school, this can mean that your last year of college may cost 15-25% more than your first year. For parents or students that have a number of years until college begins, it means your savings plan needs to account for this gigantic increase in cost.
The steep rise in college tuition fees makes the students think of other alternatives like working part time adjusting the college timings which are otherwise called “Earn While You Learn” schemes. This enables the students to become independent or rather they would try to become financially independent to a certain extent.