Wr 323 the skyrocketing costs of college education

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The Skyrocketing Costs of College Education

WR 323: Final ProjectYu Han

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Outline

I. PSU Student Rally Against Tuition HikesII. College Tuition increase

-at PSU -across the whole nation

III. College debt-PSU students -college students across the whole nation

IV. Students' reactions toward skyrocketing tuitions and debtV. Quality of college education: what students are receivingVI. Potential social problems

-college drop out rate-minority group youths -job market

VII. What needs to be done VIII. What I think...

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I. PSU Student Rally Against Tuition Hikes

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PSU Student Rally

Credit: http://vimeo.com/38063821Camera: Jyunmi Hatcher Reporter: Justin Brown

http://vimeo.com/38063821

On Feb. 21st 2012

About 400 students and instructors from Portland State University, Portland Community College and Mounthood Community College

Held rally in the PSU Park Blocks

The main purpose of the rally was to protest against the continuous increases of Oregon college tuitions and the sharp decline in state funding for higher education

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PSU Student RallyWhat was going on?

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PSU Student Rally

Photo aboveBy: Motoya Nakamura, The Oregonian

Photo on the leftBy: Yu Han

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● On the previous page, the picture in the upper right corner is a sketch of the PSU PEP Rally. ● Students are holding placards saying "Education is a right", "The voice of students: Lower Tuition!" etc.● Most students have a serious look on their face, and they are shouting slogans. ● Students of different age groups and race groups paticipated in the rally.

The picture shows that a lot of students do care a lot about tuition fee increase of their colleges. They are worried, and so they stand out to let legislators hear their voices.

• On the previous page, the picture in the lower left corner shows things that I received from the organizor of the PEP Rally: ASPSU, prior to the rally. • There were a leaflet, a tri-fold brochure, a badge and a bookmark, and all these included information about the rally.

The preparation work by ASPSU shows that the PSU student government was trying to get students' attention about the rising tuition and unite the power of students to fight against the increase.

PSU Student Rally

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PSU Student Rally

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PSU Student Rally●Associated Students of PSU (ASPSU), which is the student government of PSU, as well as the organizer of the PEP Rally, made this tri-fold brochure.

●The student government has spent about one month for all the preparation work of the rally. They wanted to gather the power of as many students as possible, so as to draw attention of Oregon Legislature, and let the Legislature stop the fund cutting of Oregon University System.

●Rally speakers noted that the current generation of students has had to take on more debt than their predecessors because of rising tuition and declining financial aid resources.

●They also pointed out that Oregon spends more on prisons than on higher education.

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Conclusion:

●Students cannot stand anymore with the tuition increase, and they chose to stand out and fight against the tuition hikes.

●The rhetoric of this rally was focused on keeping tuition low and higher education accessible in Oregon.

●How much has tuition increased in the past few years then?

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II. College Tuition increase

-at PSU

-in Oregon

-across the whole nation

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PSU Tuition Fee Hikes "At a meeting of the State Board of Higher Education on Jan. 6, 2012, a near 9 percent increase in tuition for the full 2012–13 academic year was approved for Portland State. Included in this hike is a 9 percent increase in tuition for the upcoming 2012 summer session as well" (PSU Vanguard).

What triggered the PSU Rally?Here we go!The 9% jump has made most of the students feeling frustrated.

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PSU Tuition Increase from 2008 to 2011Graph 1: Just How Much Has My Tuition Increased Since 2008?

Source:Portland Spectator Volume 9 /Issue 6/ April 2011, Page 3

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PSU Tuition Increase● This is a graph from Porland Spectator showing PSU tuition increases from 2008 to 2012 for both in-state and out-of-state students.

● For an in-state student who takes 15 credits every term, during the past 4 academic years, resident tuition went from $4,905 (2008 academic year) a term, to $5,321 (2009) a term, to $5,648 (2010) a term, to now $6,185 a term. Compared to the tuition in 2008, students now need to pay an additional $1,100 every term.

● PSU resident tuition has increased by appoximately 26% in the past 4 years.

● For an out-of-state student who takes 15 credits every term, during the past 4 academic years, tuition went from $17,595 (2008 academic year) a term, to now $21,369 (2011) a term. Compared to the tuition in 2008, students now need to pay an additional $3,800 every term.

● PSU out-of state tuition has increased by approximately 21% in the past 4 years.

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Tuition Increase of Oregon Colleges

Graph 2: Money for Universities:State general fund spending;Annual Tuition and fees

Source:Oregon University SystemDAN AGUAYOThe Oregonian

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Tuition Increase of Oregon Colleges●The upper part of the graph shows that since 2007, the Oregon State general fund spending for post-secondary education has been declining. During the 2011 to 2013 period, the funding is only about 669 million dollars, which is close to the lowest status of the past decade.

●The lower part of the graph shows that the average tuition and fees for ful-time students of Oregon University System have been increasing since 2001. In addition, compared to the tuition and fees in 2001, those in 2012 are twice as much.

●In the 2012 academic year, state funding has reached its lowest point while the average tuitions and fees have hit their highest record.

●There is a trend that the state funding will keep going down in the coming several years while tuition and fees will continue on growing.

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Graph 3:College Tuition CPI Vs. U.S. Home Prices Vs. CPI

Source:BLS Census (1978-2010)

Tuition Increase across the Whole Nation

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● This is a graph showing the tuition increase across the whole nation.

● The graph is expressed in a percentage scale.

● The Consumer Price Index (CPI) was about 380% in 2010 compared to what it was in 1978.

● Home prices were about 400% in 2010 compared to what they were in 1978.

● College Tuition CPI, however, was about 1050% in 2010 compared to what it was in 1978! (a ten-fold increase!)

● Among the three indexes, the increase of college tuition CPI has outbeaten the other two. The growth of college tuition CPI was steady, and since 2002, the growth has become really fast.

Tuition Increase across the Whole Nation

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●From the previous graphs, we can see tuition hikes ‒ at PSU,‒ in Oregon, ‒ and across the whole nation. ‒ In general, college tuitions are skyrocketing!

●How do students pay for their tuitions then?

●Can students still afford their tuition?

Conclusion:

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III. College Debt

-PSU students

-college students across the whole nation

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College DebtWhat do college students need to pay for?•Tuitions;•Books and stationary;•Housing;•Food;•Clothing;•Insurance;•Entertainment;•Other things.

How do most college students pay for school?•Student loans;•Working;•Grants and scholarships;•Parents;•Other methods.

Among these methods, a combination of working to pay tuitions along with getting student loans is the most common method.

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College Debt- PSU Students

Graph 4: How does Portland State Stack Up? Percent of students who graduated with debt in 2009.Source:Peterson's Undergraduate Financial Aid and Undergraduate Databases

In Oregon, what is percentage of students that graduate with debt?

How much do students owe on average?

PSU

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College Debt- PSU Students● According to the Peterson's Undergraduate Financial Aid and Undergraduate Databases, about 58% of students from Portland State University graduated with debt in 2009.

● The amount that PSU students owe on average was $22,440.

● Suppose a student payback $500 each month, then he or she needs about five years to payback all his(her) original tuition and the interests.

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Video 1: Laura has $20,000 of College Loans Debt

Credit: http://www.youtube.com/watch?v=3Vjmcnx53wM&feature=related

College Debt- Students across the Whole Nation

http://www.youtube.com/watch?v=3Vjmcnx53wM&feature=related

College Debt- Students across the Whole Nation

●Laura is a representative of most college students.

●Students work hard to pay for their tuitions. However, the minimal wage that they get just barely enables them to pay for their housing and food expenses.

●By the time students graduate, most of them carry about $20,000 to $25,000 in debt.

●Though Laura is a senior student, she doesn't look happy. She looks rather worried.

●However, she is still willing to payback all her loans and debt.

Conclusion:

●Most college students pay for school by loans.

●By the time they graduate, the first thing they are to deal with is the $20,000 to $30,000 debt.

●What are students' reactions toward skyrocketing college tuitions and loans?

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IV. Students' Reactions toward Skyrocketing College Tuitions

28Credit:http://www.youtube.com/watch?v=hFb6EB2bCxU&feature=related

Video 2:YouSpeak: Student Loan Debt- Students from Boston University

Students' Reactions toward Skyrocketing College Tuitions and College Debt

http://www.youtube.com/watch?v=hFb6EB2bCxU&feature=related

http://www.youtube.com/watch?v=hFb6EB2bCxU&feature=related

●According to these interviews of Boston University students, college debt is a BIG concern of them. Some of them even describe it as their number one struggle. As soon as they get out of school, they will need to deal with this nightmare.

●A lot of students cannot afford to go to colleges or graduate schools due to the high tuitions.

●The pressure of paying off loans is affecting students' choices about their jobs and careers.

●Students are complaining that getting a degree does not help them to get better jobs or earn more money. They are getting the same amount of money that high school graduates are getting. The only difference is that they have a huge amount of loans and debt to pay off.


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●Students are saying that they need a good higher education to better themselves and better the world.

●Students think that currently, the government and the Legislature haven't done enough to provide students with a good opportunity to enjoy an affordable and high quality higher education.

●Students are looking for more help from the government with their higher education.

31Credit:http://www.youtube.com/watch?v=4sbBTyxNOMc&feature=related

Video 3: Student Loan Debt Crisis


http://www.youtube.com/watch?v=4sbBTyxNOMc&feature=related


●According to the video, combined student loan debt is now about 1 trillion dollars, and the average is hitting about $24,000 per student.

●Student loan debt is even larger than the credit card debt of this country.

●Because of the big concerns of college tuitions and debt, students are doubting the value of higher education.

●Some students even have extreme opinions toward college education. They think colleges are just robbing their money.


●This is an article from Portland Spectator.

●The title of the article is "Say No to Debt- Why I Refuse to Pay Back My Student Loans".

●The author is graduating at the end of the coming spring term with a bachelor's in English.

●However, in order to afford repayment on his student loans, he has to work in a cafeteria or restaurant, which are "dead-end jobs" as he describes.

●He decides not to pay back his student loans to Sallie Mae because he thinks poor students deserve the money more.

Conclusion:●Most students feel frustrated, worried and helpless about their high college tuition and huge loan debt. They are under a great pressure.

●Students feel that the government and the Legislature are not doing enough to let more people enjoy higher education. They are expressing their unsatisfaction and are calling for help from the government.

●What are the effects that high college tuitions and loan debt have on college students?

●What are some potential social problems that might be caused by high college tuitions?

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-college debt crisis

-other debt

-college drop out rate

-minority group youths

-job market

V. Potential Social Problems Caused by High College Tuitions

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Potential Social Problems Caused by High College Tuitions and Loan Debt

(1) College Debt Crisis‒ As mentioned ealier, student loan debt is hitting 1 trillion dollars, and it is now even larger than the credit card debt of the country.

‒ If students cannot afford paying back their loan debt or if they quit their repayment, the economy of the whole nation might be potentially affected. Another financial crisis may take place.

‒ Even if only a small portion (e.g. 10%) of the students fail to pay back the loans, the influence can be huge: 100 billion dollars may be lost.

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(2) Other Debt‒ According to Experian analysis for USA Today of credit records of 3 million twentysomethings, while paying off student loans, credit card payments and house bill payments of these young adults are more likely to be late.

-These late payments can harm the credit scores of these young people.

-In addition, agian, these late payments of credit card bills and house bills can have negative effects on the economy of the whole nation.


(3) College Drop-out Rate‒ As college tuition is getting higher and higher, fewer and fewer will be able to afford the higher education. Some young adults will never have the chance to enjoy higher education. After graduating from high schools, they may directly go and find a job. Others who struggle to pay their tuition may end up with dropping from their colleges.


(4) Minority group youths‒ Minority group youths might be those who are under the highest risks of dropping out from colleges.

‒Especially for those students whose parents are first generation immigrants, they are very likely to drop out from college due to the lack of financial support and psychological encouragement.


(5) Job Market‒ As students' are not able to finish their college and get a degree due to the high college tuitions, their options for employment are more or less restricted. They’re not able to follow their dreams as much as follow the paycheck.

‒Our society needs those people who have gone through higher education to be doctors and other health care professionals, scientists, engineers, police officers, professors and instructor, etc. If fewer people in the society can get higher education, the productivity and the creativity of the whole nation will decrease a lot.

Conclusion:●High college tuition and loan debt not only have a great impact on young individuals, but can also leave huge negative effects to the whole society either directly or indirectly.

●College tuition is skyrocketing. However, is the quality of education skyrocketing, too?

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VI. Quality of College Education : What Students are Receiving

Quality of College Education: What are Students Receiving?

In addition to the rising tuitions, another big concern is about the quality of education. Are we getting better education as we pay more?-Perhaps not.

●According to an article in the New York Times called "Your So-called Education, college education is getting poorer because "The authority of educators has diminished, and students are increasingly thought of, by themselves and their colleges, as “clients” or “consumers.” When 18-year-olds are emboldened to see themselves in this manner, many look for ways to attain an educational credential effortlessly and comfortably.

Quality of College Education: What are Students Receiving?

●In addition, though students are paying more for their tuition, due to fund cuttings by states, colleges are increasing their class sizes, and hiring fewer full-time faculties. As a result, students are having fewer opportunities to get in contact with their instructors, and many of them are struggling in class.

Conclusion:

●Students are paying more their tuition, but it seems that they are not receiving better education.

●Is it still worth going to college then?

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VII.Is College Worth It?

College tuition is increasing sharply, is it still worth going to college then?-Definitely yes.

Why?

●First of all, there is still a correlation between higher levels of education and higher earnings.

Why do we need to go to college?

Source:U.S. Bureau of Labor Statistics

●According to the graph from the previous page, the higher degree people get, the lower rate the unemployment is, and the higher wage people get.

●Thus, even though there might be exceptions, this general trend is not changing much. Higher education will you pay you off one day.

●Second, higher levels of education correspond to lower levelsof unemployment and poverty.

●Third, college graduates have more positive perceptions of personal health and health care.

●Fourth, higher levels of education are correlated with higherlevels of civic participation, including volunteer work, voting, and blood donation.

●Fifth, higher levels of education helps to increase the productivity and creativity of the whole society.

●Sixth, higher levels of education enables individuals to have more career-related knowledge and a broader horizon.

Conclusion:●College education is important to both individuals and the whole society.

●Both individuals and the society should make efforts to let more people access affordable good-quality higher education.

●What should be done to reach this goal then?

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VIII. What I Think...

What I Think...●I am a senior at PSU.●By the time I graduate (in the coming spring term), I will have about $24,000 student loan to pay off.

●I know college is important or actually essential, and it can offer me some life-long benefits.

●However, I do think that PSU tuition is going up too fast right now.

●Compared to when I just got into PSU in 2008, tuition has increased more than a quater.

●If tuition keeps increasing, students will be under greater financial pressure and fewer students will have the opportunity to enjoy the benefits of higher education.

●It is time for the government and the Legislature to do something and help college students with their education.

●It is hard to say how government can increase fundings for colleges. As we all know, it's not a good idea to increase taxes or decrease medical insurance fundings. However, what about military fundings? Is the government putting a little too much emphasis on this part? Is it possible to decrease some expenses there?

●If not able to putting more funding in, at least, states should not pulling any more money out. Or,the college education system will break out one day.

What I Think...

●For those students who are still in college, my comments are:● get good use of the source of school!

●So go to classes, get in touch with professors, ask them questions, and learn as much as you can.

●Make friends, see your advisors, and make sure that when you need help, either finally or emotionally, you have someone to rely on.

●Use all the useful source in school: you should go to the library, go to the career center, tutoring center, go to the gym, attend clubs and other activities.

●You are paying to receive higher education, so make sure that when you graduate, you can walk out with something.

What I Think...