A University Education_ Unfortunately, You Get What You Pay For

A University Education: Unfortunately, You Get What You Pay For by: Joshua Grant

In the 5th century AD, when young scholars wanted to enrich themselves in the practices of Buddhist philosophy or become enlightened in the mechanics of the universe, they traveled to a small village in northeast India. Bada Goan, located in the Bihar State of India, is home to the famous ruins of Nalanda. Starting out as a community of teachers and scholars united by their passion for knowledge, Nalanda became the archetype for universities all over the world. The transformation from culture centers to degree granting institutions began in Europe in 1088, eventually evolving into the modern university. It is certain that if they were alive today, Nalandan scholars would be thrilled to see the concept of higher learning still in existence. That is until they got the bill.

Hand Over Your Arm and Leg Please If you are a parent or student, the chances are you had a slight heart attack upon researching and paying for a university tuition. College is an expensive investment. According to a report by the U.S. Government Accountability Office, “The cost of obtaining a U.S. Degree is among the highest in the world and rising.� Globally, the average cost of a public education in the U.S is $4,587.00 per year.

For a private education, the U.S schools have the highest average price tag, ranging from National Hispanic University at $4,610 to Sarah Lawrence at $54, 410 per year. Unfortunately, this is not expected to change anytime soon. There has been a general trend in American universities that the cost of a post - secondary education should be higher. Tuition and fees have been going up at approximately 6 percent a year for the past decade, meanwhile inflation has only risen about half that.

Unlike most countries, the United States does not subsidize higher education. The trade off is that U.S citizens taxes remain much lower, and many Americans are willing to accept that. Some angered by this often argue that universities are merely corporations that care nothing about education, but are designed to rip off the people who foolishly are willing to pay the exorbitant costs. Their belief is if the government really cared about the education of its citizens they would find a way to make it affordable like it is done in Europe. To them the only students who come out of the American university system rather unscathed are those with the brightest minds or the deepest pockets.

We're Not Out to Get You If a university's rapacious desire to make money were the focal point, it is certain that tuition prices would eventually decrease as working Americans became wiser to the con and began refusing to pay. In fact, there are numerous logical justifications to the skyrocketing cost of a higher education.

According the American council on Education, there are: State Appropriations- In 36 states it is the state government who determines the price of learning for its public colleges and universities. The other 14 states, give the institutions themselves autonomy to their tuition. Since the 80's, state governments have systematically reduced spending on higher education, which forces the schools to subsidize their cutbacks by increasing tuition and fees. In other words, the more the state cuts, the higher the tuition cost. A 1 percent decrease in state appropriations may result in a 3 to 5 percent increase in tuition. For example the University of Nebraska received a 1 percent cut which resulted in $2 million dollars trimmed from the school's budget.

With a private university, it is the student who feels the adverse affects of the cut. Many students are able to pay for private university tuitions through public grants, therefore a decrease in available funds means there are fewer students attending them, in turn forcing these institutions to raise costs to fill the financial gaps of missing students.

Professors and other Labor- Much of a university's reputation is reliant on its highly skilled and often very expensive talent, making colleges and universities among the most labor-intensive enterprises. Up to 70 percent of an institution's operating budget is devoted to personnel costs. The goal is to attract the top minds in the high demand fields and beat out the international competition. Clearly, this does not come cheap. A tenured teaching staff means a financial commitment to them for the full extent of their working lives.

Campus Services and Operating Costs- Attending a university is not just about the classroom. Many universities entice prospective students by promising them a full matriculating experience. Students will spend the next 4 or more years of their life living on campus, and students and parents expect to see quality academic support, counseling, health services, and campus security. Parents desire that their child's first out of the home living conditions be secure and top of the line. Universities must offer a wide array of facilities, a nicely maintained campus, comfortable housing, student centers, and cafeterias. The state very rarely subsidizes these facilities, forcing schools to pay out of pocket. Every school knows without these facilities attracting students is next to impossible.

Keeping Up With Technology- Knowledge doubles every two to five years, in most academic disciplines. For the university this means new computers, science labs, up-to-date libraries in order to ensure a high quality education. The rising expense of updating equipment and instruments vital to undergraduate teaching, such as electron microscopes and DNA sequencers can be extreme but are necessary to meet the demands of an ever evolving workplace in 2011 and beyond.

Regulation- The federal, state, and local governments often create new regulations that mandate financial changes for education. Translating to the hiring of personnel for the sole purpose of staying current with these regulations and policy changes is very expensive. Almost all federal agencies are involved in regulating some aspect of higher education.

Changing Economy- From the beginning of the economic crisis until now there are very few families or business that have not felt the impact of a changing economy and universities are no exception. When energy prices soar, electric and gas bills go up. In the recent financial crisis, institutions have seen the value of their endowments plummet and donations decline. When these things take a hit, tuition and fees have to make up a bigger portion of operations and financial assistance.

Financial Aid Awards- It is no surprise to learn that not every student attending a university pays the same price. A report by The College Board states more than $143 billion in financial aid is available to students and their families. It also reports that about two thirds of full- time undergraduates receive some kind of financial award package. In the 2008-2009 academic year, estimated aid in the form of grants and tax benefits averaged to about $2,300 per student at public two-year colleges, about $3,700 at public four year colleges, and about $10,200 per student at private four-year colleges.

Despite these rather convincing justifications, critics of the educational system will continue to argue these institutions exploit young people who simply desire to learn. Conversely, European universities are often cited as a cheaper alternative to the current financially back breaking system America has now, and perhaps they are right. Europe was the epicenter of the modern university.

European students do not seem to be at a disadvantage, in fact European students rate higher than their American counterparts when it comes to academic aptitude. Certainly, Europe has been the home to many academic achievements, Nobel prize winners, philosophers, scholars, artist, scientific discoveries, and technological innovations, and yet the tuition cost of an European university remains less than half of the American price tag. How can this be explained?

Study Abroad Anyone?

Europe is the home of modern enlightened thought. It is the home of Galileo, Copernicus , Pasteur, and Newton. Scholars were gathering in Paris and Bologna before America even existed. The concept of the university, is European. Their universities were the first to offer degrees, to house its students, to create academic paths for various disciplines, to make higher education coveted and sexy.

Since that time European governments have made sure that citizens should have the right to take part in the joys of higher learning.

Any American who has ever lived or studied abroad in Western Europe will surely find university prices to be astonishingly cheap. In Europe, most universities are heavily subsidized by national governments. European countries' policies and taxes are mostly targeted to social benefits and the well being and education of its citizens,is included under this umbrella. In return Europeans accept to pay higher income taxes for these social services. Although tuition fees can vary between courses, institutions, and whether the students are residents or internationals, Europe continues to maintain a low-cost higher education system compared to the United States.

German students are obligated to pay a fee of € 1000 ($1,380) enrollment charge per year, regardless of whether the student is EU or not. In the United Kingdom, the maximum tuition fee amount that can be charged to EU students is £3,145 ($5,095) a year. Average tuition for domestic students is around £3000 ($4,859) , and for international students about £10,000($16,200) a year.

France has 82 universities. All are public. There are no tuition costs or extra fees, just an enrollment charge of about € 400 ($540) per year. EU and Non-EU students are considered the same, and acceptance is based on excellence and discipline of study.

Of course in Europe there are also the expensive private university options. France offers a private university option. These schools known as “grand ecoles” are much more selective and often require two years of preparation as well as high scores on placement tests for acceptance. However, even the prices of these “great schools” does not exceed € 5000 ($6,902) annually. The University of Buckingham in the UK, which receives no government aid and the alma mater of former Prime Minister Margaret Thatcher, costs $30,400 for British students and $52,000 for international students.

So the question becomes, why aren't American students rushing off to Europe to attend European universities and save themselves from student loan debt and endless scholarship applications?

The reality is many do. American students make up about 35 percent of the European student population. Then how do we explain the countless number of American undergraduates and parents of graduates who are still willing to go years into debt in order to attend Ivy League universities or study on American campuses. The answer to this question is not one of cost or price, it is a question of quality. Unfortunately, when it comes to a higher education, you get what you pay for, and American Universities are the best in the world.

Because We're Worth It. The Annual Academic Ranking of Word Universities done by the Shanghai Jiao Tong University is the most widely used , accurate, and trusted system when it comes to qualifying academic institutions. ARWU's ratings system is calculated by six indicators; the number of alumni and staff winning Nobel Prizes and Field Medals, the number of highly cited researchers selected by Thompson Scientific, the number of articles published in journals of Nature and Science, the number of articles indexed in Science Citation Index -Expanded and Social Sciences Citation Index, and per capita performance with respect to the size of the institution. ARWU ranks about one thousand universities and publishes the top five hundred.

According to the 2010 ranking, America is home to 17 of the top 20 universities, including Harvard(No.1),Yale (No.11), Cornell (No.12), and John Hopkins (No. 18). As well as the University of Pennsylvania (No.15) and the University of Chicago (No.9). The remaining three spots are held by the University of Cambridge (No. 5) and the University of Oxford ( No. 10) both in the UK and the University of Tokyo ( No. 20) in Japan. American universities currently employ 70 percent of the world's Nobel Prize winners, 30 percent of the world's articles written on science and engineering, and 44 percent of the most frequently cited articles. These impressive statistics are what allow universities to charge high tuition prices and expect them to be paid. They guarantee the best and they deliver.

The decline of European universities is due to the fact that they are funded solely by the state, therefore not allowing the university to be in charge of its own internal affairs. There is an obligation to enroll and process the maximum number of students. In France, universities cannot select students and all lecturers are civil servants. The funding necessary to maintain a competitive edge is not present and has led to the erosion of academic quality. Very often the universities complain of the government's micromanaging and the results speak for themselves. Only 9 European universities make into the the top 50.

Modern Means Money Developing countries and even Europe have noticed this unsettling reality. Europe is no longer the sought after continent for those seeking the absolute best higher education money can buy. This does not bode well for European university advertising. In recent years, EU governments have been attempting to restore their academic institutions former glory. To do this universities will have to move further away from their governmental benefactors One advantage of this change would be the ability to raise tuition and fees. The economic downturn has caused frugal governments across the continent to make massive cuts in public services, including access to higher learning. European institutions realize that in order avoid bankruptcy all together, they will have to begin charging for things that were once free. Many countries are considering alternative funding for universities.

Austria is currently in talks within the parliament to raise tuition costs. Six German states have demanded that their parliament remove legislation that exempts college students from paying tuition. In Belgium, has added a new â‚Ź 500 ($691) enrollment fee as well as Holland and Italy. Probably the most drastic change is in Ireland, where student costs have gone from about $240 per student to $2000.

Taxpayers are becoming increasingly concerned with the high cost of low university prices. French students who pay $540 a year benefit from the government subsidizing the remaining $16,160. There are currently 2.2 million students enrolled in university in France, which has a population of 60 million.

To understand the financial burden one merely needs to do the math. Sweden and Finland, who have long defended high taxes and socialism for the greater good, have decided to start charging non-EU students to study in their countries.

Of course these changes have sparked debate in Europe as many devout socialists argue that if people have to pay for higher education, it will be become a monopoly for rich. Sound familiar? But actually there is little truth to this argument. The majority of European university students are already predominately from middle class families. Students should have some assistance in attending school, but the days of low student fees in Europe will have to become a thing a of the past in order to outdo the competition.

Knowledge is Power Europe is not the only continent where America faces competition in the knowledge economy.

Emerging powers have consistently pushed the idea of working harder and smarter. Singapore, India, China, have all increased the size of their student population, pouring vast amounts of resources into developing elite universities. If the West is not careful, it could fall behind Asia not only in the economic but the academic race as well.

President Obama realizes this has begun to enact changes in order to re-energize the American educational system. In March 2010, the president signed legislation to grant access to college for millions of American students by overhauling the federal student loan program. The new law will eliminate fees paid to private banks who act as the middle man between students and colleges. It will also increase the number of Pell Grants available to students to about 900,000 by 2020. Community colleges will receive an additional $2 billion dollars to provide education and career training programs.

In truth American universities have not been a monopoly for the rich, a third of undergraduates come from racial minorities, and about a quarter come from families with incomes below the poverty line. However, it is easier to come to the prior conclusion if accessibility to grants, loans, and scholarships are lost within mountains of paperwork and bureaucratic inefficiency. Because what will be the benefit of having the world's best universities if American students are left behind.