Running head: CAN YOU AFFORD IT?

Can You Afford It? The Accessibility of College Tuition

Caroline A. Charles

First Colonial High School Legal Studies Academy

CAN YOU AFFORD IT? 2

Abstract

This paper reveals the contributions over time that have led college tuition costs to increase

dramatically over the past thirty years. The author begins by introducing statistics outlining the

problem that reflect the change in annual tuition costs from 1988 to 2018. The author goes into

further detail explaining aspects and elements that contribute to the cost of college. The author

also explains the impacts of tuition increases and compares these tuition increases/college costs

with different types of colleges and different places where higher education is offered. A lawsuit

is discussed in relation to a provision in the Arizona State constitution stating that public

education in Arizona should be “as nearly free as possible.” Finally, the author describes the

potential solutions to the problem, including those ranging from an individual level to necessary

government involvement.

Keywords:​ college, cost, tuition, university, annual, increase

CAN YOU AFFORD IT? 3

Can You Afford It? The Accessibility of College Tuition

Thirty years ago, the average tuition for a private university was $15,160. By 1997, that

number had risen to $21,020. Ten years ago, the average was $27,520 and today that number is a

whopping $34,740. That is an overall increase of $13,720, which means tuition costs have almost

doubled. The numbers are similar for public universities, showing a 30 year increase from

$3,190 to $9,970 (Martin, 2017). If the current rate continues, average annual costs could be

anywhere from $76,969 to $90,576 by 2030 (Badkar, 2014). Why are these costs rising so much?

And what do these increases mean for education-seeking youth and their families?

College is a stressful time for many young adults. This can be attributed to many factors

such as academic workload, real-world pressures, and job searching; however, the biggest

challenge students face before, during, and after college is finance. Over time tuition prices for a

majority of United States colleges has increased dramatically. These cost increases have come to

a head, and more people than ever struggle to come up with the money necessary to put

themselves or their children through college. The difficulties have spread to the middle class,

which leaves a small number of people able to safely pay for college with no hardship. In a time

where college is becoming more of a standard and less of an option, this increase will have

extremely detrimental effects on the quality of education people are able to receive (and

consequently, the jobs they can hold), and the state of our society as a whole (Bogle, 2017).

Because of the incredible rise in college tuition over the past few decades, many more

people struggle financially to afford college, despite their income. These costs have become so

unattainable that even upper middle class families struggle to cover the bill. Many people

understand that college is unaffordable to many low income families; however, a new study by
CAN YOU AFFORD IT? 4

The Institute for Higher Education Policy (IHEP) shows that about 95% of all colleges are totally

inaccessible. IHEP did a supplementary study on these topics and found that students from

families earning over $160,000 have what they deem is enough income to attend 90% of the

2,000 colleges they analyzed, but students with family incomes of up to $69,000 have enough

income to afford only 1% to 5% of the colleges studied (Deruy, 2017). These numbers will only

become more depressing, as higher prices for education mean even families with incomes over

$160,000 will struggle more and more to cover the costs.

This frightening reality will have extremely harsh effects on the state of our society and

the individuals in it. If colleges keep increasing tuition costs without any compensation from

increased income, the amount of people able to afford a quality college education will become

extremely close to zero. Families who are already struggling financially will have a much harder

time increasing their income and will remain in a circle of poverty. Families that used to be able

to afford college will now struggle to front the costs. Student debt will increase and people will

stop choosing higher education as an option. This will lead to a decrease in the amount of people

eligible for certain jobs in our country. Overall, a lack of educated people will mean no

improvement in the science, technology, and social fields and more financial struggle across the

country.

The Problem in Detail

History of the Issue

Statistical History. ​As mentioned above, the cost to obtain higher education has grown

incredibly over the past few decades. Even in just the past ten years, private four-year college

tuition prices have gone up 21% and public four-year costs have gone up about 26%. These
CAN YOU AFFORD IT? 5

numbers only reflect tuition. Room, board, and other expenses are also increasing drastically.

Public four-year college room and board costs have gone up 20% since 2009 and and private

costs have gone up 19%. This means it costs, on average, $9,790 more (private four-year) and

$4,910 more (public four-year) to attend college for one year in 2018-2019 than it did from

2008-2009. Public two-year colleges also increase $930, or 25% more per year. Over four years

these numbers total to $40,000, $20,000 and $4,000 more, respectively, for private, public and

two year educations (College Board, 2018).

These numbers are extremely daunting. For the parents of the current college generation,

$40,000 could usually cover the total cost of a four year university (College Board, 2018). Now

there are schools charging double that amount for a single year. For example, Georgetown

University in Washington D.C. is about $74,320 a year (Office of Student Financial Services,

2018). Even more affordable schools still propose high prices. Virginia Tech, a four-year public

school in Virginia, costs $22,554 for in-state students and $40,842 for out-of-state students

annually (Virginia Tech Office of Undergraduate Admissions, 2018).

Why have costs increased? ​College costs have increased over time for a multitude of

reasons. The cost to maintain a university has increased because utilities (lighting, heat, etc.) and

other functional requirements (food, internet, etc.) have become more expensive. It is also more

expensive to renovate or build a building than it has been in the past, as material costs and cost of

labor is much higher. Paying university staff is also more involved, as wages have gone up in the

past few decades for most job in the U.S., and professors/university employees are no exception.

Finally, schools also must compete to bring in opportunities for the students that entice them to

attend the university, which means funding degree-dependent labs, study abroad programs, and
CAN YOU AFFORD IT? 6

many other ventures. While it has become more expensive to run a university, this does not

account for tuition hikes as dramatic as those previously described. A balance needs to be

discovered that lowers the cost of attendance of college while still allowing colleges adequate

money to function and improve.

Money Delegation

Public vs. private money. ​They type of institution a student attends can have a big

impact on the amount of financial aid they have access to. Public schools are limited in their aid,

usually relying on state and federal grants. Private schools can give endowments (funds raised by

alumni or other programs) to give aid to their students (A. Metts, Personal Communication,

October 26, 2018). This gives private schools much more leeway in terms of attracting students

to their programs. Public schools generally have a cheaper sticker price, but the scholarships and

other aid offered by private schools often makes them less expensive in the end. It is important to

pay attention to these schools and what they can offer in the end because many scholarships go

unused and offers that can make even one more college accessible are very worth it in the long

run.

In-state vs. out-of-state tuition. ​Most public schools have a significantly lower rate for

in-state residents than out of state. This is an important factor and can save tens of thousands of

dollars for a student. For example, an in-state student would have to pay $23,734 to attend the

University of North Carolina at Chapel Hill for the 2018-2019 school year, while an out-of-state

student is charged $50,634. The difference in tuition alone is $26,028 (Office of Undergraduate

Admissions, 2018). While out-of-state costs are largely unattainable for the majority of college
CAN YOU AFFORD IT? 7

students due to the large increase in costs, in-state-tuition may be a better solution for students

needing to economize. Many states have in state schools with increasingly high reputations.

Impact

Arizona Court Case

In 2017, the Arizona Attorney General filed a lawsuit against the Arizona Board of

Regents (ABOR) regarding an Arizona policy on college tuition. Arizona’s Constitution states

that public university education should be provided “as nearly free as possible” to the students

who are interested in furthering their education at one of these higher learning institutions

(Atencio, 2017). College tuition at public schools in Arizona originally started at under $800 a

semester. By 2002, the cost had risen to about $2,600, which was an increase of about 60%.

However, the largest rise comes from 2002 to 2017, when in-state students were charged

$10,792 for a college tuition. This took at 60% increase to an almost 400% increase in tuition in

a decade and a half (Brnovich, 2017). The Board of Regents claims that with aid, many students

do not pay this full price and tuition is still favorable. This is in accordance with a new

“moderate tuition, high-financial-aid model,” as opposed to the old “low tuition,

low-financial-aid model.” The Attorney General, contrastly, argued that the colleges select who

gets this aid, and the academically average students with a middle of the road family income (a

substantial portion of the demographic) will be incurring the largest amount of debt (Ryman,

2017). The case was dismissed by the Superior Court of Arizona in accordance with the ABOR’s

motion claiming that the Attorney General did not have the authority to bring the action

(Leingang, 2018).
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The state of Arizona is probably one of the most likely states for a change to happen, due

to its constitutional policy stating tuition should be “as nearly free as possible;” but this

dismissal proves how hard this issue is to change. This fact only emphasizes the importance of

the issue and stresses action. Just because the court denies to hear an issue now does not mean

the issue is irrefutable; it only means the point needs to be stressed more. More action needs to

be taken to show this issue is a real one, and as a result, more people can prove that it is a

problem worth addressing. College tuition is a relevant topic that needs to be handled delicately

to ensure a positive outcome that benefits a student’s wallet but also does not hurt the quality of

education a college can give. A change will have important consequences, however, because

more accessibility to education could mean more useful workers entering the world, more

advancements made in our society, and an economy that grows and flourishes.

Comparison

United States vs. Europe

Free higher education in Europe. ​European countries are known for offering “free

education” to students. Many Americans envy this standard and believe this should be our

practice. It might be beneficial to adopt part of this system; however, there are certain aspects of

it that may prove to be harmful to our economic society. The reason this program survives in

Europe is largely attributable to taxpayers upholding the cost burden. They have substantially

higher tax wedges than the U.S. Germany is known for having one of the most enviable free

college systems, which it manages with a tax wedge (the difference between before-tax and

after-tax wages) of approximately 49 (comparable to the United States at slightly less than 32).

These countries also have much lower college enrollment percentages than the United States
CAN YOU AFFORD IT? 9

(Jackson, 2017). If the U.S. is willing to take on this financial burden for the good of the country,

every individual paying more taxes could lead to free higher education for everyone. Those who

cannot afford college will benefit greatly, although the taxes could add up quickly. The end

result could be people paying more in total through taxes than they would for just the college

experience. This is also an unlikely practice for America because the cost of college varies based

on what institution people choose to attend and how many people a family is putting through

college. A family with one child will most likely not be willing to pay higher taxes to

compensate for a different family that had 6 children. Just because this practice is not directly

applicable to the U.S. does not mean we cannot use it to create new ideas. There are many

proposed bills for the support of college education and there are different ways we can approach

the problem that will work for our country.

Solution

Reroute Federal Money

Truth In Tuition Act. ​Higher education plays an essential role in enhancing

opportunity in the U.S. and around the world. Cost should not be a deterrent to someone who is

looking to further their education, especially because that facilitates a circle of low income

families not being able to push themselves out of a state of poverty. The money that would go

into colleges (from families that could afford some or all of it initially) could also go back into

the economy in other ways, facilitating growth. States could also use the money to better the

universities and the quality of education students receive at them (“Should the U.S.,” 2015).

American college promise. ​An article on the U.S. Department of Education’s website

states:
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Addressing growing college costs and debt is absolutely critical. Many more students

need access to vastly more affordable and quality higher education

opportunities—including tuition- free degree options. For too long, though, America's

higher education system has focused almost exclusively on inputs—enrolling students in

college—and too little on outcomes—graduating from college with high-quality degrees.

We must reset the incentives that underpin the system so the focus is on the outcome that

matters: completing a quality degree at a reasonable cost. Otherwise, we ​will merely be

finding better ways of paying for an unsustainable status quo. (“College Affordability,”

n.d.)

It is important that we look at the problem from this angle as well. The cost of college is the first

and primarily impeding obstacle that a student faces. Most people do not get past this step which

is why it is so important to address. Once this problem is solved, there still lies the issue of the

quality of education being received. A good education is vital in securing a good job and making

an impact on the future. It is important that everyone take notice of the issue to restore the

incentives for a quality and timely education. The government can direct efforts to this project,

especially through the Department of Education. The government could encourage colleges to

give students enrichment opportunities through grants. They could also offer a monetary

incentive for colleges with four-year completion rates. There are many possibilities for ensuring

that the quality of an American education is always up to par with the reputation in upholds.

Pell Grants. ​Pell Grants cover only approximately 30% of the cost of public higher

education (“College Affordability,” n.d.). They are also given out sparingly, so not every student

can count on a Pell Grant. They are limited to students with a “demonstrated financial need,” so
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those in middle or upper class families will most likely not get much money at all. A student is

also only eligible for the Pell Grant if he or she has not earned their first bachelor’s degree or is

enrolled in a certain post-baccalaureate program through a participating institution (“College

Affordability,” n.d.). This further eliminates certain students, even if they do demonstrate a

financial need. While this is a great option for the students who apply, it does have its limits

which only means the gap between accessible aid and the cost of tuition is growing bigger and

bigger each year.

Simplifying the FAFSA. ​When students submit the Free Application for Federal Student

Aid (FAFSA), they are given an Estimated Family Contribution (EFC). This is the amount the

U.S. Government decides a student and their family are able to contribute to their higher

education. The government and schools usually try to loan money or give scholarships to cover

the remaining costs; contradictingly, there are many inconsistencies with this process. The

Government's views of what a family can afford are often not very practical. The number they

give for an EFC is often very high, and while it is theoretically less than the families income, it

does not account for the real amount a person or family can put towards college when there are

many other financial responsibilities that must be considered. Because these numbers and

extingent circumstances vary extremely from family to family, it is hard to correctly account for

what a family can safely contribute to their child’s college fund (A. Metts, Personal

Communication, October 26, 2018).

The FAFSA is also very complex and not very user friendly, which discourages many

people from completing it or even attempting to start it. There are many pages and tabs to

navigate through and the questions asked are often answered incorrectly due to their lack of
CAN YOU AFFORD IT? 12

clarity. It often must be completed with both parents present, which can be hard for a family with

two working parents. If the parents are divorced, this creates even more complications and adds

to the length of the process. If children have to fill out the form over the phone information can

be misinterpreted and entered wrong. If children do not keep in contact with one or both of their

parents filling out the FAFSA or any other required financial aid form could become near

impossible (“FAFSA,” 2018).

In order for more people to feel confident in the FAFSA, it must become easier to

navigate. Simplified or more specified questions are necessary with detailed instructions and

timelines. The website needs to have an estimated timeline so students can adequately plan times

to fill out the form with their parents. The site should also give processing and delivery

information so students know when they need to finish it to have it sent to the colleges they are

applying to on time. A simplified submission process would also be beneficial so students know

exactly how to submit the form. Currently there are a number steps to verifying the form that

require many codes and passwords. This should be simplified by using the mail to verify an

address/other information or creating a specific page with a verification checklist.

The Estimated Family Contribution, although more complex, also needs to be redesigned

to better convey a student’s need. The government usually is very generous with the amount of

money they deem a family can provide. This number is often very high and unrealistic, as

mentioned above, which means a new formula for calculating EFC is necessary. This will be

much harder to achieve, but a more realistic number and even a more transparent formula for

calculating it could be instrumental in the process. Even if people only understand more of what

goes into the number, they will feel more prepared for financial planning and understand what is
CAN YOU AFFORD IT? 13

expected. This would open the conversation and people would be able to persuade the

government to make changes with time and support.

College and University Accountability

More push for on-time program completion. ​High costs of college are not the only

problem financially. More and more people are not finishing college within four years, which

means they have to pay more full years of tuition. This increase is due to students switching

areas of concentration during study, students having to work full time while they attend college

in order to pay necessary college and living costs, and students simply not meeting the college

course and grade requirements from semester to semester. Most students at minimum have to

take extra courses and pay the associated costs, but more and more are adding full years onto

their education (A. Metts, personal communication, October 26, 2018). This extra year is also

becoming more necessary and unavoidable as degree requirements expand. Unless students

overload themselves during their first four years, they are most likely not able to get in the

required material for their desired profession. Three fourths of the fastest growing occupations

require education and training beyond high school, yet nearly half of people who start college

don’t finish within six years (“College Affordability,” n.d). Even undergraduate students with no

general specialization are taking longer, sometimes upwards of six years. More than 40% of first

time students who enroll in Bachelor’s programs do not graduate within six years (“College

Affordability,” n.d.). Because annual tuition costs are rising so much, these additional years

would be detrimental. Low income, first generation, and minority students are facing the brunt of

this burden. “​Just 9 percent of students from the lowest income quartile graduate with a
CAN YOU AFFORD IT? 14

bachelor's degree by age 24, compared to 77 percent for the top income quartile” (College

Affordability,” n.d.).

With more push for four-year completion, college costs will be reduced greatly. A

student can take this solution into their own hands by strategically planning their course load and

comparing that to time they may need to spend working a job or in another commitment.

Institutions could create a more concrete plan and go over that plan with students to assure that

(with the exception of unforeseen circumstances or changes) the student will graduate in four

years. This way the student will know what they are responsible for and can work with the

school staff to ensure they are on that path.

Finding the school that is right for you. ​Overall, many of these solutions will take time

to implement and a perfect resolution to the rising costs of college will be very hard to concoct.

A more practical approach is for students to do what they can to take their education into their

own hands. Researching scholarship opportunities and actively applying, becoming aware of the

different types of aid and how to qualify for them (it is also necessary to analyze the pros and

cons of different types of aid due to interest rates, loan sizes, and types of loans) will help

students generally lower the cost of any college they apply to, as many forms of aid are not

attached to a specific college or university. More specifically, researching based on the

institution is paramount. Public schools and private schools can offer different benefits to

students, financial and otherwise. Comparing in-state and out-of-state universities will also yield

a very different price. Even looking at where you stand academically compared to other

applicants can help in the process, as a school is much more likely to give merit based aid to

those at the top percentile of its demographic. It is also an important consideration that students
CAN YOU AFFORD IT? 15

are not the only ones competing in the college admissions process, the schools are competing for

enrollment. This is an important thing to remember, as a school willing to fight for a student with

high academics will often offer very appealing financial packages and benefits. For all of these

reasons, it is most important that a student pay the most attention to their academics. Students

striving to take as many AP classes or dual-enrollment courses will appeal to universities, and

they may even secure a college credit with high performance. This element is cost-cutting and

makes a student more competitive, which is invaluable. High standardized test scores on the SAT

and ACT are also very important as well as a high GPA and dedicated involvement.

All of the components mentioned in the previous paragraph together in practice will

make an individual extremely educated and ready to squeeze the most out of their college

education. Without any of the government or institution solutions, these give a good head start to

achieving affordable education.

Conclusion

An extremely relevant topic, the accessibility of college tuition presents many challenges

for citizens of the United States. Families with incomes under $70,000 have almost no

opportunities for four year higher education. Families with middle class incomes ranging from

$70,000 to $160,000 can seemingly afford about half of available colleges, and it is assumed that

families above $160,000 can afford most colleges. Rising tuition costs affect everyone, however,

and even those in high percentile income brackets are struggling more and more to send their

children to competitive universities. As students get more ambitious and want the ability to select

from a bigger pool of colleges to meet their academic rigor requirements, their struggle with
CAN YOU AFFORD IT? 16

finances only increases. More selective institutions are generally the ones with higher costs of

attendance, as has been the case for the entire history of higher education.

So many factors have led to a perfect storm, where increasing costs of college will lead to

many families staying in a state of poverty and being unable to afford higher education. There

will also be a decrease in the quality of education students can afford (because students will not

enroll in costly programs even if they have a high rate of return if tuition is too high), which

means the future of our country will suffer (Shin & Milton, 2008, pp.719-734). Education is the

key to success and without it, we will not continue on an advanced path of scientific, economic,

and social breakthroughs that improve our human condition. These future consequences are

frightening to think about, which is why this is such an important issue. We are not just dealing

with the financial struggles of young adults, we are dealing with the well being of our country.

With firm dedication and resolution, this problem can be solved little-by-little. More education

and awareness on the topic will lead to solutions, and solutions to this problem are life changing.
CAN YOU AFFORD IT? 17

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