College 101
Why Rising Tuition Costs Matter...Even to the One Percent Article Type: Quick and Dirty
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So, you're on your way back from an impulse trip to Cabo (which is so overrated these days), and at the airport, you overhear some people your age talking about paying for school. Bummer, we know, but there are some compelling reasons you might want to join in the conversation about the rising cost of a college education. (Don't worry, we'll let you get back to your super important business ASAP.)
College cost inflation has risen nearly 500% since 1985 (source) and has been rising steadily for decades. Even if your family can foot your bill with no sweat, that luxury might be difficult when you yourself have kids. 46% of recent college graduates are currently underemployed (source), and we all know the job market isn't fantastic.
Despite your stellar education and fancy shmancy smarts, then, you might end up working a job that doesn't make use of your degree and doesn't pay the bills. It's tough to jet set to Paris for the weekend when you can't even afford a new phone and you have little Karen's education to think of.
And who are those "one percenters," anyway? Imagine that, together, you and your (future? fictional?) husband or wife earn about $220,000 per year. You work hard, you've both got good jobs, but you don't make an astronomical amount of money. Sending your kids to college still might bankrupt you, or force your kids into professions they don't want to pursue.
Know any doctors out there who are super unhappy with their careers or who are struggling to make ends meet? We do.
Oh, and speaking of kids, Millennials aren't starting their own households (source) as often as previous generations did, but are instead choosing to live at home for longer intervals. So, debt or not, get ready to share the pool with your Dad for a long, long time.
But don't get too comfortable. Like we said, college cost inflation is dramatic enough to affect even families who earn well above the national median (source). We're sorry. We guess you guys might be trading down to a slightly smaller McMansion.
Just kidding. Who can afford one of those anymore?
There's no magic bullet to stop these costs from rising. An increase in institutional support from tax dollars could help, since even public colleges now get more income from student contributions than from the state (source). However, even state funding might be just a Band-Aid to stop the worst of the increases. Our solution?
Well, it requires digging up a secret cache of cursed pirate gold that our grandpa once told us about. When it comes to choosing between spending a lifetime in debt or dealing with a terrible curse passed down through the ages, we'll take the curse every time.
Something's gotta give. But don't worry, we'll still be here to help see you through the hard times, Shmoopers.