Wagner 1

Emmalee Wagner

Politics 1100

Hinckley

6 December 2018

Cost of Higher Education

In the United States, primary and secondary education are provided for free to the public

by the government. This program falls under the category of supporting the collective good as a

majority of adult citizens pay for public education, via taxes, and in return, school-age children

have access to free education.1 Yet after high school, the cost of postsecondary education is the

responsibility of those who want to attend college, university, or trade school. Many in the U.S.

have grown vocal supporting the government providing free university tuition, while others

believe doing so would cause many unwanted consequences. Government-funded tuition at

public institutions could be a reality, however current policy ideas will need to be changed in

order to gain support and succeed in the United States.

For this paper, a government-funded free post-secondary education would cover costs,

four years at a college, university or other institution for undergraduate for students from

households making less than $125,000 annually (80% of Americans)2 and would cover

community college tuition and fees for all, regardless of income. This is the basis of Senator

Bernie Sanders’ College For All Act.3

1
OpenStax American Government. American Government.​ ​OpenStax American Government.
2016.
2
​B. Sanders and P. Jayapal. College for All Act. U.S. Congress. April 3, 2017.
3
Id.
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Since 1985-6, tuition costs (not including fees, room and board, books, and other

necessities) have increased by at least 350% at public 4-year schools.4 This may seem extreme,

and while it is certainly concerning, there may be legitimate reasons for this increase.

Universities provide multiple computer labs on campus, as well as campus transportation, and

sometimes free or discounted use of public transportation within the local community. These

supplements, which fall outside the area of academics, are costly and have not been required in

the past. Now as technology is integrated into all areas of study (like smart boards and projectors

in all classrooms) and expansive campuses require transportation assistance, these newer

expenses must be covered somehow. Since these new technologies and services are used by

students, they show up as additional fees students must pay.

A prominent concern related to the increasing costs of college tuition is the similarly

increasing social and economic gap between those who can afford post-secondary education and

those who cannot. The strongest pillar of the American Dream is people can succeed and attain

social mobility based on their own potential. However, many opportunities are not available to

those without the financial ability to acquire at least a 4-year degree, or technical or vocational

training. While the federal government already supplies limited funds to colleges and university,

there was a significant decrease in funding after the 2008 financial crisis.5 So while funding for

grants and offsetting the cost of tuition is increasing, the cost of tuition is also increasing across

the country. Post-secondary education is still a goal to strive for in America and it is necessary to

4
Tuition costs of college and universities. U.S. Department of Education, National Center for
Education Statistics.
5
Annual Earnings of Young Adults. The Condition of Education. National Center for Education
Statistics.
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ensure a stable financial future, yet it is increasingly becoming out of reach for most of the

middle class.

It’s important to point out only students below a certain income bracket would benefit

from free 4-year degrees for public universities (low-, moderate-, medium-level). Advocates for

higher education paid by the government see free college as the beginning of an economic

domino effect. With no tuition to pay or student debt, higher education would be accessible to all

those who want to pursue it. This would create a more educated and skilled workforce, which

would lead, theoretically, to lower unemployment and potentially higher GDP for the U.S.

economy in the long run. In 2016, it was estimated a bachelor's degree would increase a young

adult’s income by 57%.6 Public universities with great academic reputations can charge an

exorbitant amount for tuition, possibly creating segregation between low-income students who

cannot afford the tuition but have potential to succeed, versus the higher income students with

the same potential. Low-income students, not facing accumulated substantial student debt after

graduation, could invest in the U.S. economy sooner after graduation, rather than devoting a

significant amount of their income paying off loans. While free tuition programs have been

implemented in some states and at colleges, the programs do come with restrictions. Some

programs only support students who live in certain areas like specific school districts or counties,

have a minimum GPA or earn below a specific income level or only cover specific areas of

study, like science and engineering.7

6
Tuition costs of college and universities. U.S. Department of Education, National Center for
Education Statistics.
7
Marsha Mercer. Why Free College Tuition Is Spreading From Cities to States. The Pew
Charitable Trusts. January 5, 2018.
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Those who do not support free secondary education see a handful of negative effects the

implementation of such programs may cause. Foremost, where would the money come from?

For the 2015-16 school year, the total tuition cost for community college and public universities

in the US was $97 billion, an increase of 34% from 2005-06.8 Certainly, the U.S. government

could not afford to pay that amount annually. If legislation for free public college tuition was

ratified, opponents argue state or federal income taxes will be raised to pay for this program. If

tuition at public college is free, attendance will certainly skyrocket. If this happens, these

institutions will be forced to stretch their already limited resources. This may mean creating a

waiting list for applicant students or build larger facilities. Students may not gain financial

literacy or independence if they are not faced with the economic reality of their higher education

expenses. There is also concern if tuition is not coming from the student’s or their family’s

pocket, students may not take their studies seriously. Currently, only 20% of students at

community colleges receive a degree or certificate in their first three years.9 With the success

rate at a community college level being this low, it may not be in the government's best interest

to invest in students who seem to lack determination. Providing if students find more drive (and

who says they will if tuition is free, but if they do) and determination to finish school

successfully, how would the increase in graduating student rates affect the power of having a

bachelor's degree in the American job market? The value of a degree would plummet as

college-educated workers flood begin looking for jobs. The program may backfire and not create

or fill more jobs for new graduates. Underemployment could ensue as well, which lowers the

8
Tuition costs of college and universities. U.S. Department of Education, National Center for
Education Statistics.
9
Graduation Rates component. U.S. Department of Education, National Center for Education
Statistics. 2015.
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potential income of someone with a college degree. The short-term investment of a college

education may not seem possible to pay off if the post-graduate student is not making the income

their degree may have promised. 10

Perhaps government-funded public college education is too far-fetched, especially in the

near future. However, there are alternative approaches for more post-secondary government aid.

Advocates believe stricter government budgeting would increase the amount of money available

to go towards this program. If the government cut back on military spending or unnecessary

expenses, it would have more revenue for programs like FSA and begin giving more funds to

school again. The government does provide the Financial aid programme (FAFSA) yet many

students, as well as their parents, cannot qualify for financial aid due to their income level.

Declining average yearly earnings for American households and the declining power of financial

aid, combined with an increase in college tuition has made government funding less effective

than it once was. Pell Grants used to cover 75% of the cost of tuition at a community college, but

today it could only cover 30%.11 Students aid and grants should be reevaluated to provide more

aid for a larger demographic of students.

There is one issue not caused by the macroeconomy or inflation, tuition increases or the

government’s lack of funding: athletic department fees. “Jeff Smith, a business professor at the

University of South Carolina-Upstate who has studied financial records from hundreds of

schools, estimates students across the country borrow nearly $4 billion per year to pay off

10
Preston Cooper. Underemployment Persists Throughout College Graduates' Careers. Forbes.
June 8, 2018.
11
Sara Goldwick-Rab and Nancy Kendall. Redefining College Affordability. The Education
Optimist. April 2014.
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athletic fees.”12 Each full-time undergraduate at Virginia Tech paid $675 in 2014 for both

semesters, accumulating a total of $13.2 million mandatory athletic department fee, 19% of the

athletic department funding for the year.13 Smith says smaller schools can charge even more; up

to $2,000 annually per student just to support their athletic departments.14 While few would say

collegiate sports are bad or funding should be cut drastically in order to help undergraduates save

money on education, a serious assessment does need to be made on how much students are

charged.

The suitable compromise for the United States could adopt is the current English method

of university tuition. Before 1998, the university was free for first-time, full-time citizens in the

U.K. but an increasing number of students utilized the program (as employers demanded college

graduates) and soon there was not enough money to continue the program.15 So they created a

new program wherein tuition or fees can be deferred while the student is enrolled, and the tuition

is later taken out of their income through income contingent loans. Currently, English

universities cannot charge home students more than £9,000 maximum and there is a limit to how

high much interest can be charged 16 This program frees up student’s income in school for future

savings and living expenses and minimizes the need for student loans. After the student has

graduated, they are more likely to find work offering greater income and can comfortably live off

their salary and pay back their tuition at the same time.17

12
Will Hobson and Steven Rich. Why students foot the bill for college sports, and how some are
fighting back. November 30, 2015.
13
Id.
14
Id.
15
Ryan Murphy, R., Scott-Clayton, J., & Wyness, G. Lessons from the end of free college in
England. The Brooking Institutions. April 27, 2017.
16
Id.
17
Id.
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Senator Sanders’ legislation, College for All Act, proposes a tax on Wall Street

speculation, or the investment in stocks, to cover free college tuition. If a 0.5% tax is added onto

Wall Street trading, this would accumulate $600 billion annually for the government to put

towards school funding and covering the cost of tuition.18

Government-funded post-secondary education could be hard to establish and should be

executed with extreme thought and thoroughness. Following the learning curve of the English

program, the U.S. should understand possible pitfalls in providing free tuition for everyone. It is

important for people to pay their way through life; the government should not be expected to

accommodate every need. However, delaying tuition costs for undergraduates or providing

community college tuition-free may be programs worth considering. Not expanding free

post-secondary tuition to every undergraduate may still discourage some students, perhaps those

who do not see the benefit of a degree or certification or have the drive to complete their

schooling in time. However, it will provide more accessibility and financial relief to American

students and families who do not have the resources to attend post-secondary currently, but have

the determination and want to succeed.

18
B. Sanders & P. Jayapal. College for All Act. U.S. Congress. April 3, 2017.
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Works Cited

Cooper, Preston. “Underemployment Persists Throughout College Graduates' Careers.” ​Forbes.

June 8, 2018.

Goldwick-Rab, Sara & Kendall, Nancy. Redefining College Affordability. The Education

Optimist. April 2014.

Hobson, W. & Rich, S. “Why students foot the bill for college sports, and how some are fighting

back.” ​Washington Post. ​November 30, 2015.

Murphy, R., Scott-Clayton, J., & Wyness, G. “Lessons from the end of free college in England.”

​ pril 27, 2017.

The Brooking Institutions. A

Mercer, Marsha. “Why Free College Tuition Is Spreading From Cities to States.” ​The Pew

Charitable Trusts. J​ anuary 5, 2018.

OpenStax American Government. ​American Government. ​OpenStax American Government.

2016.

“Tuition costs of college and universities.” U.S. Department of Education, National Center for

Education Statistics.
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Sanders, B. & Jayapal, P. College for All Act. U.S. Congress. April 3, 2017.