How Do We Break the Cycle of Higher Tuition and More Debt?

College tuitions continue to rise, and students are leaving school with more and more debt. Professor Daniel Lin argues that there are two main causes for increases in college tuition: a rise in demand for a college education and government subsidies. Problematically, government subsidies are supposed to be helping offset college tuition costs. So what should be done?
Professor Lin argues that we should get rid of government subsidies for higher education completely. While subsidies do encourage more students to attend college, many of those students struggle. Two-thirds of students are unable to graduate in four years, and 40 percent of students drop out of college. Those who never finish a degree tend to have significant debt. In addition, many graduate and take jobs they could have had without a college degree. While the average college graduate does earn more than the average high school graduate, not all college graduates earn higher incomes.
While eliminating government subsidies for higher education may cause demand for higher education to decrease, it does not necessarily mean students who cannot afford college would be at a disadvantage in the job market. Many industrial countries have training and apprenticeship programs for high school graduates to prepare them for successful careers. As it stands, government subsidies are contributing to increasing higher education costs. Such a policy, which is worsening the problem it is supposed to fix, should be eliminated.
To view Professor Lin’s data sources, click the following links:
Pathways to Prosperity [report]: A Harvard University report on vocational training and apprenticeship programs
Tuning in to Droppin Out [Article]: As more and more students drop out of four-year universities, we must reevaluate the question, “Is a college degree necessary for everyone?”
Digest of Education Statistics, National Center for Education Statistics [data set]: Set of data on graduation rates of first-time postsecondary students who started as full-time degree-seeking students
1. An Interview with Neil McCluskey: Student Aid and Fiscal Responsibility Act[Article]: Neil McCluskey of the Cato Institute argues that the government would solve several problems relating to cost and responsibility by reducing the federal aid available for college tuition.
2. Graph of the Week: Annual Rise in Cost of Attending College vs. Other Large Family Expenditures [Graph]: This graph reveals that the cost of education is not only higher than other costs, but is increasing at a faster rate.
3. Five Reasons to Skip College [Article]: This Forbes article argues that it might not be crazy to skip a four-year degree program and pursue other avenues to generate an income.
4. Out of School and Into the Red [Article]: This article and chart take a look at a new way of examining student debt: debt/salary ratio.
5. Apprenticeships may be Hard to Organize, but They Deliver Return on Investment [Article]: This article touts a career direction that may be more lucrative and less debt-inducing than four-year college programs – the apprenticeship.
How Do We Break the Cycle of Higher Tuition and More Debt?
STUDENT 1: I have approximately $60,000 in student debt.
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