Finally, we get some good news about college costs (now if we can just get the same with healthcare costs, we'll be in great shape!). Here's the bottom line:
College price increases slowed this year, growing at the lowest rate since 2001.
That's great! Maybe there's light at the end of the tunnel for this seemingly never-ending spiral of college costs.
But all the news isn't rosy:
But the bad news is the 7.1 percent increase at public four-year universities remains well above the general inflation rate, and drove the “list price” of tuition and fees at those schools to an average of $5,491, according to an annual survey released Tuesday by the College Board.
Prices at two-year public colleges, which educate nearly half of American college students, rose 5.4 percent to $2,191. At four-year private, nonprofit colleges, costs rose 5.9 percent to $21,235.
These prices mean students are graduating with debt:
Average debt for undergraduate borrowers is now $15,500 — a figure experts consider manageable for most students, given that college graduates can expect to earn nearly $20,000 more per year than high school graduates. Still, increases in borrowing raise concerns that some students will be priced out of college, drop out, or graduate but stay away from low-paying public service jobs so they can repay debts.
As much as I hate debt, I have to agree that the $15.5k doesn't seem that much in light of the extra earning power of a college graduate. I've posted on the topic several times. See these links for details:
- The Value of an MBA
- College Majors that Boost Your Paycheck
- The Value of an Education
- Facts on Education (and the Value of It)
- The Value of Education
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