Barack Obama 's New College Compact, And How The Compact Will Alleviate The Cost Barriers

After World War II and the establishment of Higher Education Act of 1965, the primary goal of equalizing educational opportunity to lower and middle income students became a national initiative (Mullhern et al. 2015). These initiative were provided through grants and financial aid. However, in recent years student loans have become an important part of the equation. Since the Great Recession in 2008, many states have not invested in higher education at pre-recession levels, which were already low from the previous recession (Mitchell, Palacious & Leachman). This has

According to the Federal Reserve Bank of New York, student loans have quadrupled since 2004, to $1.2 trillion (Brown). This insurmountable debt is an astronomical problem for Americans today and more so, for future Americans. College tuition has been rising for the past 40 years and will continue to do so exponentially. In an asset management report done by J.P.Morgan in 2014, the firm projects the cost of private universities to be at roughly $90,000, and $40,000 for public four-year universities in the year of 2030 (Badkar). If the government remains dormant toward this issue, college students 20 years from now, will be burdened with an even larger amount of debt.

What has the government officials, both state and federal, done to alleviate the sufferings of millions of college students? Recently, the state of Washington pioneered a movement to lower college tuition, going against the general trend across the country. The Washington Legislature, which comprises 49 members of the Senate and 98 members of the House of Representatives, has the power to control tuition levels. The lawmakers decided to lower tuition costs for in-state students for the next two years, opposing the ongoing trend of rising tuition. Beginning 2015, tuition decreased by one-fifth in some institutions. Yet even more startling, tuition continued to drop in the following year—an additional ten to fifteen percent (Brown). This daring

Nationwide the student debt is around $1.3 trillion (Chris Denhart) and in California the average student debt is roughly $21,382 (ticas.org). Recently UC regents approved an increase in tuition by 2.5 percent. The rising of tuition was to ensure that public universities could offer their students the same top-quality education even with the high enrollment demands and the reduction of state support. The students that will be most affected by this increase are students that don't receive much financial aid. But for two-thirds of the roughly 175,500 California student residents this increase will be covered (Teresa Watanabe). Some students are for this increase in tuition because they claim that classrooms have

The United States needs to look to other nations that have figured out the necessity of higher education to be at an affordable cost if not free. In 2015, college graduates are facing on average just north of $35,000 in student debt (Berman). In part, the government has reduced the federal funding that each college receives each year. Therefore, colleges have constantly raised the

The presidential race is now consuming America. It is mentioned every morning in the news and in every “scroll” through social media. While important topics such a national security, national debt, and international affairs are brought up constantly in the debate spotlight, higher education is a topic less discussed. However, each presidential candidate has a specific, strategic plan to tackle current issues in higher education. The main issue that candidates believe should be addressed includes college costs and how they impact student debt. Each candidate has a different stance on the issue, and each have a plan to move toward solving the issue. This review will cover the current issue of student debt and how that is impacting America, each presidential candidates strategic plan to tackle this issue, a critique of each presidential candidate’s plan, and a reflection of solutions presented. Each candidate running for the 2016 presidency deserves full recognition, this review will focus on the two leading presidential candidates: Hillary Clinton and Donald Trump.

Since the mid 1980s, student fees have increased at a rate approximately double the rate of inflation (Hauptman, 1997, p. 24). A 1996 study by the General Accounting Office indicates a 234 percent increase in tuition and fees at public institutions and a 220 percent increase at private universities since 1980. This compares to an 80 percent increase in inflation since 1980 (Barry, 1998, p. 39). Families today spend a considerably larger percentage of their family income on college than families two decades ago. In 1979, the average four-year tuition at a public college consumed approximately 36 percent of a family’s annual income, while a private university consumed 84 percent. By 1994, the percentages jumped to 60 and 156 respectively (Reiland, 1996, p. 36). In addition to increases in tuition, an attitude shift in regard to paying for college contributes to the problem of financing higher education. Parents today are more likely to budget college expenses out of their annual income instead of from savings, and students are expected to contribute more to financing their own education than in the past (Kiesler, 1994, p. 67).

Since 1974, tuition has been on the rise and has reached new heights. One reason why tuition is increasing is because of “the state governments’ unwillingness or inability to raise per-student financing” (Davidson). The government is spending less on college and moving those funds into other categories, such as the military. Furthermore, colleges are spending less on each student than they did during pre-recession (Fox). Even after the recession, the government is continuously cutting more and more from education funds. As the government cuts more from education funds, tuition cost will steadily increase to compensate the loss. Tuition increased from 1994 to 2015 is depicted in the graph on the next page. Drawing a conclusion from the graph, it is possible that if this trend continues, public colleges will approximately reach the same price as private colleges one day. The amount of financial aid given is unable to meet the needs of lower income students,

Colleges are noticing a drop in students’ interest in a higher education, because it forces them to fall into poverty. Obtaining a higher education is a dream of many working class citizens, but the price to go to a choice college is not available economically. The majority of students use some type of student loan, they have become the norm for attending college (Johnston, Roten 24). College is becoming unaffordable to many lower class students. With tuition prices this high, students are backing out of school and looking for jobs that only require a high school diploma. Student loans should help people, but it is only hurting them because they feel like they can never repay it. Especially since student debt continues to rise. “Student loan debt rose by 328 percent from $241 million in 2003 to $1.08 trillion in 2013, according to the Federal Reserve Bank of New York” (Johnston, Roten 25).

The rise in student’s loan take can be attributed to the fact that Americans taking Undergraduate degrees has risen over the decades. Also, within two decades’ inflation caused tuition fees to double in public schools and increase to fifty percent in private. Outstanding student debt rising has led to falling of income share. States dole out less fund to public universities as tuition fee increase consequently drowning students in a loan to support their education.

In America over the past decade, college tuition prices have gone through the roof. Many Americans today suffer with incredibly high debt, or they fear that they will not be able to pay off their debt, resulting in fewer people wanting to continue their education. Without citizens getting a higher education, America would be uneducated, which would result in America becoming neurologically nullified. Sarah Amandalore (2014), writer for the Los Angeles Times states in her article “The student loan crisis: How middle-class kids get hammered”, ‘The Delta Cost Project’ at American Institutes for Research examined rising college costs and concluded that, in recent years, a combination of state funding cuts, overspending by research universities and decreased donations have led to tuition spikes at both public and private schools” (pg. 1). When lower-income families are faced with these problems, it makes getting a higher education hard to reach. With a higher education, more life and job opportunities become available. By the government putting a limit on the amount colleges could raise their tuition, more people may opt to get a higher education. The fear of being in debt makes the idea of a higher education less valuable to many people. The government should restrict the tuition amount charged

The cost of college is rising relative to the income of American families. This is especially concerning for the students who have an average of $30,000 worth of debt or more. Rising college costs is a complicated subject, but here are three reasons why it is overly expensive: First, students demand more from their colleges, meaning that students expect more than an education like entertainment, recreation, and counseling. Secondly, there are more students who are willing to pay for higher education compared to the 60’s, and since more people are willing to pay, the colleges raise the prices without affecting enrollment numbers. Lastly, the administrative heads of colleges have been much more generous about paying themselves, at about a 250%

In 1958, the National Defense Education Act provided college students up to one thousand dollars a year in loans, but the average annual loan was actually only five hundred dollars or less because students could afford the rest of tuition on their own. Interest began at three percent a year after graduation and could usually be paid off in ten years. (Good 590-591) These statistics are a far cry from today’s, with student loan debt surpassing one trillion dollars and many graduates paying off loans well into middle age. As a result of the government shelling out billions of dollars in loans and inflation, colleges have had to increase their tuitions thus creating a college “bubble”. In the past year or so many political leaders have proposed plans to pay for two years of community college, such as President Obama, or for a full four years, such as Bernie Sanders, a frontrunner for the democratic candidacy. Even states like Tennessee,

History Many factors are accountable for of student debt. The growing problem of student debt has become more prominent in the past decade inspiring many documentaries that check the causes and effects. One reason is due to the new guidelines developed by the federal government. There are now new rules deciding who can borrow as well as how much debt they can take on. Colleges and universities have increased the costs for students to attend their schools then increasing the amount of debt these students take on as student loans. Reports have shown that borrowers who finished college in the early 1990s were able to keep up managing their student loans without an enormous burden. Some blame the economy for the debt increases but in the same 7-year period credit card debt and auto debt have decreased. If student debt had stayed constant with inflation since 1992 graduates would not be facing such burdens by student loans. Public universities increased their fees by a total of 27 over the five years ending in 2012 or 20 adjusted for inflation. Public university students paid an average of almost 8400 annually for in-state tuition with out-of-state students paying more than 19000. For two decades ending in 2012 college costs rose 1.6 more than inflation each year. Government funding per student fell 27 between 2007 and 2012. Student enrollment rose from 15.2 million in

The cost of tuition for higher education is quickly rising. Over half of college freshmen show some concern with how to pay for college. This is the highest this number has been since 1971 (Marill and O’Leary 64-66, 93). The amount of college graduate debt has been rapidly increasing also. With limited jobs available because of the high unemployment rate, college graduates find themselves staying in debt even longer. Although grants and financial aid are available to students, students still struggle to pay for their college tuition. Higher education costs are prohibitively expensive because the state’s revenue is low, the unemployment rate is high, and graduates cannot pay off their student loans.