College tuition - Research Paper Example

This paper attempts to investigate the economic costs and benefits associated with college tuition. The research will also help administrative bodies and students to identify the key factors affecting the effectiveness of college education. Finally, the conclusion will suggest effective measures to minimize the benefits cost associated with college tuition. COSTS AND BENEFITS OF EDUCATION The Opportunity Costs of College Education A number of opportunity costs are associated with college education.

When a student decides to get admission in college instead of earning on a job, the lost earning is the opportunity cost. Since there is large number of applicants than the available seats, the rejection of more deserving students account for opportunity cost to that college. If the enrolled student is not utilizing his capabilities efficiently, the rejected student might have proven more successful to college and the society. Furthermore, the qualified student directly suffered emotional stress and tangible loss.

The Economic Costs of College Education The tuition payment made for college education is an investment in student’s future. The cost of college education is increasing with every passing year as illustrated in figure 01. Figure 01. Increasing Trends in College Pricing Source: The College Board, 2010. However, the college tuition cost considerably varies depending on the choice of college. Around 47% of the fulltime undergraduate students are enrolled into four-year colleges with tuition fees less than $9,000 per annum.

Comparatively, the private four-year colleges charge students with more than $35,000 per annum. Sometimes, these colleges also offer partial scholarships and financial aid programs attracting more applicants. The average tuition and fees at a two-year college stands around 2, 713 per annum. Few of the colleges may also offer to cover all tuition costs in full scholarships. In the year 2009-10, around $154 billion was spent in providing financial aid to college students. Benefits College education is quite beneficial investment in terms of developing human capital.

The lifetime income potential of a person far increases with education and training. These days, it is vital for a person to be prepared to work in modern economies by getting reasonable education. College tuition is thus an investment in enhancing knowledge, skills, competencies, values and habits of a person. Apart from the monetary awards, various social benefits are also associated with college education. College education has remarkably decreased the public reliance on financial assistance programs leading to the generation of more tax revenues.

This also increases the serving capacity of the public sector. The costs imposed by criminal justice system on the society cannot be ignored. Over the past few decades, education has resulted in decrease of crime rates. Thus, the public sector funds spend by the system on prosecution, punishment and probation of criminals can be utilized for social welfare. In addition, educated people are capable of forming a more interacting civil society. TUITION DATA According to the Trends in College Pricing 2010 report, increase in grant aid has resulted in decline of average tuition and fees in the recent years.

However, a large number of students are still paying full tuition charges that are increasing every year. For instance, Students at four-year public colleges with no financial funding paid 7.9% more in 2010 than they