In recent years, the cost of higher education in the United States has skyrocketed. Prices for everything from food, energy, rent, and tuition continue to rise. The increasing cost of education has forced millions of American students to take out loans to attend college, making it difficult for students and parents to decide whether to pursue higher education.
A recent report from Bloomberg News shows that the rising cost of education is undermining public confidence in the value of a college degree. According to a survey by the Pew Research Center, nearly 30% of Americans believe that a college degree has lost its value. Nearly half of the respondents said that going to college without taking out loans is worthwhile, while only 22% believed that taking out loans for college is worthwhile. As tuition fees continue to rise, people’s views on the cost-effectiveness of a college degree have significantly changed. More and more people are unwilling to incur heavy student debt to attend college.
Data from the National Student Clearinghouse shows that from 2019 to 2023, undergraduate enrollment in the U.S. dropped by nearly 8.9%. This indicates that more young people are reassessing the necessity of pursuing higher education. Recently, CNN reported that rising inflation and reduced government funding have left many universities struggling with their budgets, causing many institutions to pass on the increasing operational costs to students. According to the College Board, in the 2023-2024 academic year, the average cost of attending a four-year public in-state school was $24,030, an increase of $730 from the previous year. The cost for private universities is even more staggering, with the average annual cost of attending a four-year private institution reaching $56,190, an increase of $2,200 from the previous year.
Additionally, the high loan interest rates and tight repayment terms make it difficult for many Americans to even pay off the interest on their student loans, let alone the principal. According to data from Bankrate in December 2023, the current annual interest rate range for federal student loans is 5.50% to 8.05%, in addition to hefty loan fees. The average annual interest rate for private student loans can reach as high as 17%. These exorbitant loan costs leave many borrowers mired in debt.
A report from the “Education Data Initiative” shows that it takes an average of 20 years for American student loan borrowers to pay off their debt. Students in some specialized fields may even need an average of 45 years to pay off their student loans. According to the U.S. Department of Education, one-third of the debt will never be repaid. These figures are a stark indictment of the U.S. higher education system. A platform that should provide more opportunities for young people has instead become a source of burden and stress due to high costs and heavy debt.
The continuous rise in the cost of higher education in the U.S. not only undermines public confidence in the value of a college degree but also places heavy economic pressure on many young people, making it difficult for them to achieve their dreams. This issue requires more attention and practical measures to resolve it, or the American education system will face an even greater crisis.
