What are student loans really paying for? This may sound like a question with an obvious answer, but consider the significant rise in tuition in the last ten years. More people are seeking out a higher education, and more people are unable to pay for the costs without borrowing through student loans. What’s going on?
The cost of attending college has risen far above the rate of inflation since the early 90s, and some are pointing exclusive blame at the institution itself. In just about every major university construction is a constant. New dorms. New dining halls. New workout facilities. Universities are upgrading and expanding, and it’s not cheap. Stuck in a cycle of spend-more-to-make-more universities are putting out top of the line buildings with the latest technology in hopes of attracting more students. Without the finances to fund these projects universities are increasing prices to refuel their spending accounts.
Not only are universities actively seeking increased enrollment through these cutting edge campuses, but they have already seen an increase in enrollment demand. More people want in so they raise prices because, well, they simply can. However, as greedy as they are there is something to be said for a decreased funding from the states. Their funding supports drop and something must make up for it.
In both instances, it’s a sick cycle. Too many signs point towards monetary gain rather than on the students and quality education; a challenge that must soon be addressed before universities find themselves closing doors because no one can afford to attend.
Read more about cutting edge campuses: http://www.wnem.com/story/26281673/student-housing-if-you-let-someone-else-build-it-they-will-come