College Tuition Pay Research Paper

Colleges have become extremely expensive. College fees have skyrocketed in the last few decades. Previously, students could attend college for four years and payed a couple thousand. Now, undergraduates must pay more than three time the same amount for one year. That’s a giant difference that some people can no longer commit to. College tuition has exponentially grown because of state budget deficits, federal aid increasing in banks, and non-efficient rationing of acquired funds by universities. Institutes nowadays receive less money from public and state funders. Many of them are getting less money from state taxes. With less money from their funders, they need to compensate from student tuition payments. “It’s that they have to get that …show more content…
With the extra money they are given, banks are more friendly to the idea of giving out larger loans to younger people. Colleges see the potential from these loans and choose to increase tuition for pupils to make more possible money. When given the opportunity, they will exploit the chance at more money. “Rising college tuition has stoked the ire of students, families, as well as politicians, and a surprising cause may be partially to blame: Expanded access to money to pay for school from the federal government; William Bennett, the Secretary of Education from 1985 to 1988, is probably the public figure most associated with this theory, after Bennett argued in 1987 that increases in federal financial aid “have enabled colleges and universities blithely to raise their tuitions, confident that federal loan subsidies would help cushion the increase.”” (Berman). The document states that universities will increase the price of tuition based on how much undergraduates can receive in a mortgage. Universities are monitoring possible student loan to fluctuate their …show more content…
Even without increase to federal aid they will still increase their prices. If aid does increase, then their tuition will simply increase at a more rapid rate.“If the federal government gives money, tuition goes up. If the federal government doesn’t give money, it goes up. Now, I think the availability of federal funding drives it up more quickly and more surely. Federal student aid makes it easier for colleges to do what they’re going to do anyway, which is raise tuition. There’s more money available” (Stainburn). The articles tells that college tuiton price follows federal aid growth and builds up off of it. Students are allowed to take out more money in loans enticing colleges to raise their price to monetize the cost even