Should University Education Be Free - Literature review Example

Should Education Be Free? Table of Contents Table of Contents 2 Introduction 3 Discussion 4 Needs of Higher Education and Cost Involved 4 Increasing Rate of Education Loan 6 Debt Burden and Job Selection 7 Critical Evaluation of the Key Argument 9 Conclusion 11 References 13 Introduction Education is a basic need of every individual to develop his or her ability to meet with various developments within the professional domain. With the increasing needs for education, people in the present day are more inclined towards availing higher education. Furthermore, owing to the higher level of competition people nowadays are more inclined towards developing the education level to meet a huge amount of challenges faced in the professional field. However, with the increasing demand of education the prices involved have even gone up simultaneously. The huge cost of education has been evident with the development of the notion of increasing demand for professional courses. The compulsory need of the basic college degree has in turn enhances the need for availing strategies that would support the student to get adequate development in a profession. This compulsion of availing higher education is noted to be increasing the diverse needs of funding. Furthermore, the alarming rate of increase in the cost involved in the domain of education has in turn enhanced the level of availing student loans. This notion is noted to be creating a big crisis at the microeconomic level and adversely affecting job decision making among students (Rothstein & Rouse, 2011). In this regard, the paper elaborates on the effect of students on their individual decision making while selecting jobs. Furthermore, the economic impact of the same on the loan market has been duly analysed to illustrate the various specifications that are available within the educational area. Discussion Needs of Higher Education and Cost Involved Increasing cost has emerged to be a threat to the individual lifestyle and has even created major stress on different sections of society. Conversely, this increase in prices at the different levels of society could not decolourise human aspirations. Thus, the parallel increase of human aspirations and prices to be paid for it paved the way to certain financial aids. These aids were in the form of debts that was to be availed by common people from various financial institutions operating within the economy. With the increasing competition within the professional domain, there has been a shift in the needs of education (Locke 2014). From the initial days of primary education, the basic level of education has risen over the years and has given way for professional education to be a basic need for developing a proper sustainable career. Thus, higher education has become necessary for the youth for a bright future. The alarming rate of cost has on the other hand increased the need for financial aids within educational system. However, whether they are actually acting as an aid or increasing financial burden is still a question that needs to be answered (Altbach et al., 2009). Furthermore, there is a debate on the fact that education is a public good hence, should be made affordable to meet with the demand for the same. Privatisation of education has changed the overall status of education as well as affected the providence of the same at large. Notably, treating education as a business tool among the privatised institutes is increasing the amount of fees involved with education as well as affecting the development of the same. To support the topic of making education free could be ascertained as education is deemed to be a public good and must be made affordable to all (Hendel et al., 2005). According to Hendel et al. (2005), higher education at an affordable rate has become a prime requisite for people researching on social science. With the increase in need for availing higher education, there is a huge change in the education structure at large. The increase in the basic standard of education and the level of receiving the basic education has increased to a considerable extent (Hendel et al., 2005). Correspondingly, Fabra and Camison (2009) comment the direct impact of the educational level on job satisfaction has further catalysed the need of availing higher education. It is often noted that lack of professional training is viewed to be a factor that the person either in question is having a lower level of merit or was incapable for availing professional education. However, lack of proper fund is never viewed as a possible reason for having less level of higher education (Fabra & Camison, 2009). This phenomenon has compelled people to avail education even at raised prices even at the price of compensating other needs of life. Furthermore, with a continuous increase in the cost of education, financial aids are becoming prominent in the market. Conversely, this could be noted that with the increase in the needs of education the organisations charging fees are even providing quality needs of the students. Additionally, following the basic principle of demand and cost the increased demand for higher education has even enhanced the price at which education is provided. This increase in prices has been well substantiated with the fulfilment of quality needs of student to prosper in the present competitive edge (Rothstein & Rouse, 2011). In this regard, Weiler (1994) states that the increasing concern of finances within the domain of education is going to force the students to select careers that would support them to earn more rather than a career that would be promising. This tendency among the baccalaureate students is even going to influence the selection of subjects among students (Weiler, 1994). Increasing Rate of Education Loan With an increasing demand for education the prices involved with higher education has also increased over the years. Correspondingly, the continuous development in the need of higher education within the domain of professionalism has in turn catalyst the need for availing higher education. This increases the demand for higher education and ensures a steady growth within the domain of professional achievement (Hendel et al., 2005). With the increasing rate of educational requirements and the raising need for availing higher education, people are more inclined towards seeking financial aid to fulfil the needs of financing. In addition, the huge demand of professional course has enhanced and implied a level of compulsion for people to attain professional training in order to get jobs that would support higher level of earnings. The financial aids available for education are going to increase the ability of people to avail courses that were unaffordable. This will effectively enhance the ability of students to meet with the diverse needs of society and increase their ability to meet with the competitive domain within the peripheral of attaining knowledge (Minicozzi, 2005). According to Minicozzi (2005), there is a shift in the planning for jobs and the underlined needs that supports the selection of prospective career is greatly influenced by the level of earnings that the job would have in future. There are certain researchers who view this notion to be an effect of the loan that the student has availed to finance the needs of education. The increased amount of fees and cost involved with completion of the course influence the decision for availing the jobs (Weiler, 1994). In the present era, the students are even noted to be selecting their career based on the amount of returns the job is likely to earn in the future. However, based on the needs of professionalism and the advanced needs of technical knowledge students must be developing their ability to sustain in the competitive domain of the global world. Furthermore, with the aim of achieving the highest level of success students are inclined towards attaining the greater knowledge to earn excessive amount of fame as well as the amount of financial benefit attached to it. Thus, it can be argues that instead of the merit earned or interest for a specific subject the amount that they could earn after completion of the course and getting a job is one of the positive forces in developing the interest of the students. Measuring the education as tools for earning money has hindered the status of education. Rather it could be argued that instead of being a prime need for developing the quality of a human, education has become the building stones for earning extra money for a better standard of living (Minicozzi, 2005). The short-term impact of finances on the overall career selection process is even going to affect the different needs of the society. It is often noted that baccalaureate students end up selecting subject that they hardly have any interest on. This is highly going to affect the interest of the students and develop their interest for building a strong career. This short term influences are noted to be creating a veil on the selection of career (Fabra & Camison, 2009). This could be argued as once the fulfilment of basic needs is achieved students fail to achieve their level of self-actualisation and contentment. Hence, they end up being dissatisfied with their job and the overall system gets stagnant. Additionally, the less earning jobs is losing its worth due to the increasing competition, as there is huge amount of concentration in the sections having lucrative earning prospects. This is even affecting the economic level of a section and creating a huge impact on the principle as well as quality for education (Hendel et al., 2005). Debt Burden and Job Selection Recent years have evidence a steep increase in the prices of education and there is a variation in the prices based on the status and fame involved with the institution providing education. With the coercion to avail, professional education there is a huge shift in the needs of finances with the increase in the level of education. Furthermore, with the increase in concentration towards getting a specific job there is a huge shift and advancement in the price that is involved with attaining the educational needs (Hendel et al., 2005). This has compelled the students to avail educational loans and develop their careers within the domain. This have in turn increased the debt burden and influenced the election of jobs. Furthermore, the pressure created by the debt that the students have to bear post completion of their job has been engulfing their selection process for jobs. This is even noted to be creating an adverse effect on their career growth and blocking their level of commitment towards the job (Minicozzi, 2005). Correspondingly, the changing business environment has even affected the education system, and instead of being an effective base for developing knowledge, education is presently measured in terms of money that it would provide in return. In addition, the increasing burden of educational loan has been acting as an influence that is blocking the development of the students and in turn creating a massive influence on the selection of career. Noteworthy, the increasing prices of the education system has been creating a hindrance among the lower income groups to avail higher level of education (Rothstein & Rouse, 2011). There are chances that meritorious students within this class of people often get secluded from the main stream of society due to lack of adequate funds. The changing price structure of education affects the economic development of a country. Students tend to have an inclination towards availing higher education that is majorly involved with a high amount of earning after completion of courses. This has been noted to be affecting the different needs of employment and in turn affecting the complete situation of imparting education. On a positive note this tendency among the students are acting as an added advantage for the development of the economy. With the increase in the number of professionally trained labours, the overall economic system of a country will prosper (Rothstein & Rouse, 2011). The present situation of education and the cost involved with the development of the same has been creating a substantiate impact on the overall higher educational system. Notably, there is a huge shift within the system of providing education as well. With a change in the sole motive of getting educated people are majorly aligned towards gaining higher education to get a satisfactory job and earn high amount of salary (Minicozzi, 2005). The rate of earnings that a job can support in the later years has become the sole motive for students to select a particular job. Additionally, organisations providing professional trainings are increasing their fee structure and this has been creating a huge impact on the lifestyle of students. The students availing education loans are often stressed with the compounded amount of loans, which blocks their ability to think and affects their decision about selecting a particular job (Weiler, 1994). Critical Evaluation of the Key Argument Educational loans are creating huge influence on the selection of career among youth. The extent of loan and the credibility of earning that the job are going to have acts as a positive force for developing a person’s likeness towards availing a particular job. Additionally, the increasing numbers of people who are availing higher education are commendable and are highly appreciated as it enhances the chances of developing a bright future for the country. Financial aids act as positive support to increase the number of people availing higher education (Minicozzi, 2005). This is even going to increase the overall base standard of education and develop the overall status of education within a country. However, the availability of financial aids is going to create huge amount of gap between the financially stable and instable portion of the society. Thus, one of the major needs is to develop affordability of education and enhance the overall status of higher education. Correspondingly, the affordability of the education must be done keeping in mind the needs of quality for developing professionalism among the people. Although, the amount charged for education in the present years are high. The amount of specialisation provided by the institutions is noted to be enhancing the quality of education at large. This inequality in income and financial position is affecting the overall development of the present situation and affecting the status of education. Furthermore, with the development of financial aid there is a huge chance of financial gap within the sector of the higher education. The financially weak sector even fails to avail the educational needs related with the high rate of fees, as there are certain binding attached with the availability of financial aids (Fabra & Camison, 2009). Thus, there is a huge gap between the availability of funds and the selection of careers. The fact is that people having a greater amount of education is often satisfied with their jobs. This is even creating an effect on the need of having higher education. However, owing to the involvement of huge amount of fund within the field of higher education there are evidences of inequality among the student based on their financial conditions (Rothstein & Rouse, 2011). Furthermore, the development of affordable education has become a necessity of the present time. With the increase in the basic needs of education and development in the concept, attaining higher education as minimum criteria for job satisfaction there should be a unanimous plan for providing higher education to all. Additionally, the government should also be thinking of either lowering down the cost or making the higher education free from charges so that people from different financial status does not face difficulty (Fabra & Camison, 2009). From the economic point of view, the enormous rate of student loans is even likely to affect the overall structure of the economy. The burden of educational loan has huge influence on the household financial status and even affects the overall system of mortgage. With the increasing trend in student loans, there has been a huge shift in the concepts of financial planning. The increasing burden on the economy has in turn affected the overall planning for financial development (Thompson & Bricker, 2014). In this regard, Bolton (2015) states that the existing policies of students’ loan among the higher education students are repaid to the government only after the earnings of the students reach a minimum standard. This enhances the ability of the students to gain independence and without being stressed by the cost burden often imposed with the loan facility. However, this strategic implication of loan repayment is even viewed to be affecting the overall system of financing. Moreover, the debt burden is even going to affect the overall structure of the society and influence the different financial sector at both macro as well as micro economic level (Li, 2013). Thus, by lowering down the educational cost or even making higher education a part of the honorary services as the minimum level of education government will be able to increase the quality of education. This will even lower down the economic effect and increase the status of education from being a mere tool of income (Gale et al., 2014). Institutions must be developed such as Alison for providing free education to students. Alison institutions is providing free online education for various professional courses with certification that is developing the quality of education and in turn developing the level of education among masses (Alison, 2015). Conclusion The macroeconomic and macroeconomic concepts related to the financial sector are often affected by different loans and mortgages. The increasing pressure of loans can lead to an adverse situation for the overall financial market and be hazardous for the society. Educational loans are increasing in an alarming rate and are affecting the economy through different faces. Moreover, the changing status of education has even become a major concern for the overall system. With the increase in the basic level of education, higher education has become a compulsion and people are availing the same even at the cost of financial burden. However, this conception of increasing loans and financial aid is creating an increasing pressure among students to avail a career that would support the financial needs. Correspondingly, the multiplying rate of educational loans has even become a huge concern for the government, as the increasing rate of subprime crisis is even prevalent in the educational loan. The over burdened status of educational loan can even affect the development of the overall economic system and create a crisis. Hence, the educational system should be made free, as it would enhance the system of education and develop transparency in the economic system. References Altbach, P. G. et al., 2009. Trends in Global Higher Education: Tracking an Academic Revolution. A Report Prepared for the UNESCO 2009 World Conference on Higher Education. [Online] Available at: http://www.uis.unesco.org/Library/Documents/trends-global-higher-education-2009-world-conference-en.pdf [Accessed March 07, 2015]. Alison, 2015. Free, Certified Courses from the Worlds Top Publishers. Home. [Online] Available at: http://alison.com/ [Accessed March 11, 2015]. Bolton, P., 2015. Student Loan Statistics. Social & General Statistics, pp.1-18. Fabra, M. E. & Camison, C., 2009. Direct and Indirect Effects of Education on Job Satisfaction: A Structural Equation Model for the Spanish Case. Economics of Education Review, Vol. 28, pp. 600-610. Gale, W. et al., 2014. Student Loans Rising. The Brookings Institution. [Online] Available at: http://www.brookings.edu/~/media/research/files/papers/2014/05/student%20loan%20debt%20rising%20gale%20harris/student_loans_rising_gale_harris_09052014.pdf [Accessed March 08, 2015]. Hendel, I. et al., 2005. Educational Opportunity and Income Inequality. Journal of Public Economics, Vol. 89, pp. 841-870. Li, W., 2013. The Economics of Student Loan Borrowing and Repayment. Business Review, pp. 1-10. Locke, W., 2014. Shifting Academic Careers: Implications for Enhancing Professionalism in Teaching and Supporting Learning. The Higher Education Academy. [Online] Available at: http://www.uis.unesco.org/Library/Documents/trends-global-higher-education-2009-world-conference-en.pdf [Accessed March 07, 2015]. Minicozzi, A., 2005. The Short Term Effect of Educational Debt on Job Decisions. Economics of Education Review, Vol. 24, pp. 417-430. Rothstein, C. & Rouse, C. E., 2011. Constrained After College: Student Loans And Early-Career Occupational Choices. Journal of Public Economics, Vol. 95, pp. 149-163. Thompson, J. P. & Bricker, J., 2014. Does Education Loan Debt Influence Household Financial Distress? Finance and Economics Discussion Series, pp. 1-36. Weiler, W. C., 1994. Expectations, Undergraduate Debt and the Decision to Attend Graduate School: A Simultaneous Model of Student Choice. Economics of Education Review, Vol. 13, No. 1, pp. 29-41. Read More