The Cost of Higher Ed

[digitS']

“Ability,” Napoleon said, “is of little account without opportunity.” True. But, it is also true that opportunity amounts to little without ability to act on it.

When I was in a public 4 year college in 1970 and I was required to spend a dollar for tuition and fees -- let's say it was a 2016 dollar -- I gained a dollar's worth of education. By the year 2000 (30 years later), I would have had to spend nearly $2 ($1.96) for the same education.

This year, I would have to spend $4 for that education. The College Board's annual report, out today: Trends in Tuition and Fees over Time

In 30 years, it doubled. In another 17 years, it has doubled again, with costs adjusted for inflation.

The good news is that the cost of college is no longer skyrocketing like it did during the recession but if it has slowed, can we really believe that children born tomorrow will NOT have to pay twice as much for higher education than students entering their first semester, this year?

Thank you American Society for making my college ed so affordable.

Steve

 

[Ridgerunner]

When I went to college (Tennessee Tech, a state school) in the late 60's - early 70's and got my engineering degree, annual tuition, books, room, and board was about $5,400 total. The meal ticket was from Sunday night meal through Friday lunch. On the weekends I was on my own. My parents paid for about half my first year. After that I was on my own. I worked a year out of school and spent two years in the army. I'd take about 17 or 18 hours a quarter in engineering while a 12 hour load was considered normal for many other majors. I usually worked 20 to 24 hours a week in the school cafeteria. When I graduated after seven years with my four year degree I had two months left on the GI Bill. I did not have any loans until I bought a car so I could go to work.

Steve, in 1970, what did a basic new car cost? Maybe 2/3 of that $5,400 or around $3500? Maybe that helps keep it in perspective.

 

[digitS']

The figures I gave above account for inflation.

Okay, @Ridgerunner , you did good.

I worked, too. There wasn't much choice. Only one semester did I not work ... I then had to take the next 2 years off because I couldn't pay for another semester of tuition and fees. I never lived on campus. Partly because it was more expensive than living where and how I did off-campus. I had $1,800 in loans after 4 years.

A $3,500 car in 1970? That's about right. I wanted a Triumph sports car! I still remember it was about $3,500. It was fantasy; I had a wife and baby.

$3,500 in 1970 = $21,778.30 in 2016 dollars http://data.bls.gov/cgi-bin/cpicalc.pl

Steve

 

[Rhodie Ranch]

My DD's student loans are $56K for two BS degrees. My SIL's loans are $136K for two BS degrees and a MS degree. They must start paying on them this coming January.

Thud....

My private college educ cost $14K for my parents back in the early 70's. I paid to live on campus for my last two years, and I paid for my Masters program in Arizona. I worked through out all my schooling. Oh, and my brand new 73 super beetle cost $2600 out the door.

 

[seedcorn]

Hopefully they have useful degrees. DIL has over $50,000 in student loans for a worthless degree. Proud of her and son as they are dedicating one salary to pay it off. I see too many people who don't pay off debts because they want what they want when they want it.

 

[seedcorn]

While $60,000 sounds like a lot of money vs $12,000 in early 70's-when I went. My starting salary was $10,000/year. Now, $40,000-$60,000 plus for first year.

 

[digitS']

My private college educ

It's interesting that private schools have not raised tuition and fees as much as public school. The increase is to about $3 for my $1 in 1970.

It's still "real money," inflation accounted for. Much more expensive and I'm guessing that government funds going to private colleges has decreased proportionately from such.a.long.time.ago.

I was a kid and didn't pay much attention. Certainly, I didn't have any experiences to draw from to have some idea of the investment society was making. And, no - it didn't do me much good. I was there mostly because I enjoyed being there. The majority of the time I was thinking that I would be doing farm work no matter what knowledge I gained at the U. By the time I realized that I could better capitalize on the experience ... life got in the way.

I doubt that it is very much different now with the kids. My daughter could have been my "change of life" baby in another age and another gender. We grow up and older and she did too, and will soon complete a master's program. It took her several years out of school before she could pay for it and then part-time in the graduate program as she continued working full-time.

DD just had a promotion and is making a good deal of $. Her older brother never completed a 4 year degree, despite 3 shots at it. He also had a recent promotion. I hope they don't compare incomes just so that his feelings aren't hurt, if they might be. They both seem happy with their employment, at least.

Steve

 

[bobm]

Our #2 son has a position of management of clean room maintanence of a high tech computer company. He recently completed a $6,000 intense course ( one course ) to get a industry and government certification. Within a couple weeks, he now has contracts to manage 5 high tech clean room manufacturing facilities with a nice increase of income. He now is in a process of getting a visa for international travel to Canada to get new contracts.

 

[Smart Red]

Way to go, #2 son!

 

[seedcorn]

Steve, here's private schools are $28,000 to $70,000 per year. Public is $16-20,000. Private doesn't need to raise theirs.