The US Tuition Bubble

THE TROUBLE WITH TUITION IT ALL BEGAN QUITE INNOCENTLY, BACK IN GEORGE WASHINGTON'S DAY... FIRST 9 CHARTERED UNIVERSITIES (PRE-REVOLUTIONARY WAR) THE FIRST: HARVARD (1636) THEN... 1693 O WILLIAM AND MARY 1701 O COLLEGIATE SCHOOL (WHICH BECAME YALE) 1740 O ACADEMY OF PHILADELPHIA (UNIVERSITY OF PHILADELPHIA) 1746 O COLLEGE OF NEW JERSEY (PRINCETON) 1754 KING'S COLLEGE (COLUMBIA) 1764 O COLLEGE OF RHODE ISLAND (BROWN) 1766 O QUEEN'S COLLEGE (RUTGERS) 1769 DARTMOUTH IN 1800 .001 PERCENT OF THE POPULATION WERE ENROLLED IN COLLEGES. BY CENSUS, 5,308,483 PEOPLE WERE LIVING IN THE UNITED STATES, OF WHICH 893,602 WERE SLAVES. 1880: TYPICAL COLLEGE COSTS GEORGETOWN UNIVERSITY (THEN GEORGETOWN COLLEGE), DISTRICT OF COLUMBIA 24 SENIORS WERE ABLE TO COSTS WERE $300 PER YEAR FOR TUITION, BOARD, AND LODGING. ADJUSTED FOR INFLATION, $300 IN 1883 EQUALS $6,926 IN 2010. GEORGETOWN AT THE TIME ATTEND LECTURES AT THE ALSO HAD A PREPARATORY SCHOOL ON THE GROUNDS. SMITHSONIAN WHEN ACCOMPANIED BY A PROFESSOR. ON THEIR DAYS OFF STUDENTS COULD ATTEND DEBATES IN CONGRESS OR PLEADINGS IN THE SUPREME COURT. THE TUITION FOR MEDICAL SCHOOL WAS $100 FOR THE FULL SERIES OF LECTURES. THE SCHOOL HAD REQUIRED THE COLLEGE CHARGED $150 RELIGIOUS CATHOLIC WORSHIP FOR ITS TWO-YEAR LAW FOR STUDENTS. SCHOOL CURRICULUM. BY 1900 THERE WERE 300 UNIVERSITIES. TUITION FOR PRIVATE SCHOOLS AVERAGED $75-$300. TODAY NEARLY 20 MILLION AMERICANS ATTEND COLLEGE EACH YEAR. OF THAT 20 MILLION, CLOSE TO 12 MILLION – OR 60% - BORROW ANNUALLY TO HELP COVER COSTS. TUITION COST PER YEAR PUBLIC TWO-YEAR COLLEGE (IN-STATE STUDENTS) S3,131 PUBLIC FOUR-YEAR COLLEGE (IN-STATE STUDENTS) $8,655 PUBLIC FOUR-YEAR COLLEGE (OUT-OF-STATE STUDENTS) $21,706 PRIVATE FOUR-YEAR COLLEGE $29,056 THERE ARE 38.8 MILLION STUDENT LOAN BORROWERS WITH OUTSTANDING DEBT. STUDENT DEBT ALMOST TRIPLED BETWEEN 2004 AND 2012, IT NOW STANDS AT OVER $1.1 TRILLION, MAKING STUDENT LOAN 2012 2004 DEBT THE LARGEST FORM OF CONSUMER DEBT OUTSIDE OF MORTGAGES. S101.8 THE DEPARTMENT OF EDUCATION'S ESTIMATED BILLION PROFITS GENERATED FROM STUDENT BORROWERS OVER THE LAST FIVE FISCAL YEARS. WHO OWES WHAT? STUDENT LOAN BORROWERS BY AGE IN 2012 15 MILLION PEOPLE 10.9 MILLION PEOPLE 6 MILLION PEOPLE 4.7 MILLION 2.2 MILLION PEOPLE PEOPLE UNDER 30 30 39 40-49 50- 59 60+ STUDENT LOAN BORROWERS BY LEVEL OF BALANCE IN 2012 DELINQUENCY (90+ DAYS) BY AGE 39.9% $1 to $10,000 UNDER 30 30-39 40 - 49 50 - 59 60+ 29.8% $10,000 to $25,000 8.9% 12.1% 16.1% 12.2% 12.5% 17.7% $25,000 to $50,000 17% OF STUDENT BORROWERS ARE 90+ DAYS DELINQUENT, THAT'S 6.7 MILLION PEOPLE. TWO OUT OF FIVE STUDENT LOAN BORROWERS- OR 41% - ARE DELINQUENT AT SOME POINT IN THE FIRST FIVE 9.0% I $50,000 to $100,000 2.2% $100,000 to $150,000 0.9% $150,000 to $200,000 0.6% $200,000+ YEARS AFTER ENTERING REPAYMENT. WHAT'S THE R.0.1. OF YOUR COLLEGE DEGREE? UNDERGRADUATE TUITION, POSSIBLE GRADUATE DEGREES, AND ROOM AND BOARD ALL ADD UP -- ESPECIALLY FOR STUDENTS TAKING OUT LOANS. BUT WHICH DEGREE AND WHICH JOBS REALLY PAY OFF? SEE HOW LONG IT WOULD TAKE YOU TO PAY OFF YOUR LOAN BY COLLEGE DEGREE SCAN OR VISIT http://www.bankrate.com/finance/college-finance/roi-college-degree.aspx BEST VALUE: 5.83 YEARS 7.08 YEARS 8.5 YEARS ECONOMIST ADVERTISING, MARKETING AND PROMOTIONS CIVIL ENGINEER WORST VALUE: 34.67 YEARS 31.83 YEARS 27.92 YEARS MARRIAGE AND FAMILY THERAPIST JOURNALIST VETERINARIAN AROUND THE WORLD ENGLAND AS AT MOST ENGLISH UNIVERSITIES, IN 2013-14 THE TUITION FEES FOR UK/EU STUDENTS STUDYING FOR AN UNDERGRADUATE DEGREE ARE £9,000 PER YEAR. THE AVERAGE STUDENT LOAN DEBT FOR NEW GRADUATES WAS £12,850 IN THE 2007-2008 SCHOOL YEAR. BY 2012, IT INCREASED TO AN ESTIMATED £26,000. CANADA ON AVERAGE, CANADIAN UNDERGRADUATE STUDENTS PAID $5,581 IN TUITION FEES IN 2012/2013. AS OF SEPTEMBER 2012, THE AVERAGE DEBT FORA CANADIAN LEAVING COLLEGE WAS $28,000. CANADIANS HAVE ACCUMULATED MORE THAN $15 BILLION OF STUDENT LOAN DEBT. FRANCE IN FRANCE, PUBLIC EDUCATION IS PAID FOR BY THE STATE, SO TUITION AT PUBLIC UNIVERSITIES VARIES FROM €150 ($195.73) TO €700 ($913.43) DEPENDING ON THE UNIVERSITY AND LEVEL OF DEGREE. PRIVATE UNIVERSITIES IN FRANCE COST ON AVERAGE, €1,500 - €6,000 PER YEAR. CHINA AVERAGE TUITION IN CHINA RUNS ABOUT ¥40,000 ($6517.20) ANNUALLY. IN TOTAL, CHINESE COLLEGE GRADUATES OWE ¥8.1 BILLION IN LOAN DEBTS. SWEDEN IN SWEDEN, POST-SECONDARY EDUCATION IS PAID FOR BY THE kr STATE, SO UNIVERSITY IS ENTIRELY FREE. 85% OF ALL SWEDISH STUDENTS GRADUATE WITH DEBT. WAIT... WHAT? COST OF LIVING COMBINED WITH LARGE FEES CAUSE THE MAJORITY OF SWEDISH STUDENTS TO ACCEPT GOVERNMENT SPONSORED GRANTS AND LOANS. THE AVERAGE STUDENT GRADUATES WITH 124,000 KRONA ($19,000) OF DEBT. SOME COUNTRIES IN WHICH POST-SECONDARY EDUCATION IS FREE NORWAY SCOTLAND FINLAND SPAIN GREECE TURKEY MOROCCO EGYPT KENYA ARGENTINA URUGUAY BROUGHT TO YOU BY NonProfitColleges0nline.com CITATIONS http://libertystreeteconomics.newyorkfed.org/2012/03/grading-student-loans.html http://www.newyorkfed.org/studentloandebt/ http://www.guardian.co.uk/money/2013/apr/03/student-loan-debt-america-by-the-numbers http://www.asa.org/policy/resources/stats/ http://www.newyorkfed.org/newsevents/mediaadvisory/2013/Lee022813.pdf http://inflationdata.com/inflation/inflation_artidles/Education_Inflation.asp http://www.cfs-fcee.ca/studentdebt/index.html https://bigfuture.collegeboard.org/pay-for-college/college-costs/college-costs-faqs http://www.study.cam.ac.uk/undergraduate/finance/tuition.html http://www.statcan.gc.ca/daily-quotidien/120912/dq120912a-eng.htm http://www.studyineurope.eu/study-in-france/admission/tuition-fees http://www.ntnu.edu/livingintrh/livingintrondheim/costs-and-fees http://qz.com/85017/college-in-sweden-is-free-but-students-still-have-a-ton-of-debt-how-can-that-be/ http://www.randomhistory.com/1-50/039degree.html http://sxl01.businessinnovationfactory.com/history/era03 http://www.huffingtonpost.com/frank-h-wu/the-problem-of-tuition_b_2713382.html http://lifeandluxury.hubpages.com/hub/History-of-College-Tuition-The-Cost-of-College-Tuition-In-the-Late-1800s Чр %24