Surging college costs price out middle class

[Shadow]

NEW YORK (CNNMoney) -- What do you get when college costs skyrocket but incomes barely budge? Yet another blow to the middle class.

"As the out-of-pocket costs of a college education go up faster than incomes, it's pricing low and medium income families out of a college education," said Mark Kantrowitz, publisher of financial aid sites FinAid.org and FastWeb.com.

Tuition: In 1988, the average tuition and fees for a four-year public university rang in at about $2,800, adjusted for inflation. By 2008, that number had climbed about 130% to roughly $6,500 a year -- and that doesn't include books or room and board.

Income: If incomes had kept up with surging college costs, the typical American would be earning $77,000 a year. But in reality, it's nowhere near that.

In 2008 -- the latest data available -- the median income was $33,000. That means if you adjust for inflation, Americans in the middle actually earned $400 less than they did in 1988. (Read: How the middle class became the underclass).

Rising college costs price out middle class - Jun. 13, 2011

 

[editec]

Yup!

Not a clue how my kid is going to get through college given the current state of affairs.

Compared to the help that was avaialable to me and my generation?

Today's kids are hosed.

 

[boedicca]

Yeah. The Feds promoting "Everybody Deserves A College Education" has done to the cost of college what their "Everybody Deserves To Own A Home" policy did to the housing market.

The only difference is that the higher education bubble has not yet burst.

 

[Shadow]

Kind of along the same lines in a way. I was reading an article about not only is tuition higher making student loans harder to pay off. But College grads also can't find jobs because no one is hiring and that unemployment for this age bracket 16-24 has risen to 19.6% Meaning 1 of of every 5 grads can even find jobs.

 

[WorldWatcher]

>


If people think tuition is the cost of college, then they have a shock coming when their kids get old enough to go to college. My daughter is attending a state school, annual cost is about $18,500 of that about $7,500 is the tuition cost.

If you are poor, you can qualify for all kinds of scholarships and grants. If you are rich you can afford college for your kids. The ones really taking the hose job are the middle class, they earn to much to qualify for almost all income based scholarships and grants because they make to much money - but yet can't afford $75,000 - $100,000 for their schools.

On top of that if they do plan ahead, then they shoot themselves in the foot under FAFSA and college financial aid rules. For example in the 1990's we established a college savings account (actually prepaid tuition) for each child. Enough to cover two years at a University for each and paid into it for 12 years. (We figured on them helping to pay for the other two years through part-time jobs and summer work.) The down side is that the money you put away is counted toward family assets when if comes to determining expected family contribution. In other words if you save for education, you hurt yourself later on for qualification for assistance.



>>>>

 

[psikeyhackr]

So maybe we need to accept that what is called education is just credentialism.

The schools are selling credentials to people who can memorize and some of whom can't think worth a damn.

Could providing a good reading list beginning in grade school be a way around this?

Good sci-fi from the 50s and 60s contained ideas that often are not presented to kids until they get to college and then don't explain them well. The educational system creates jobs for people who claim to be educators but then waste people's time.

[ame=http://www.youtube.com/watch?v=p0wk4qG2mIg]YouTube - ‪Harvard Graduates Explain Seasons‬‏[/ame]

Winston Science Fiction: Synopsis for THE YEAR WHEN STARDUST FELL by Raymond F. Jones

psik

 

[kwc57]

>


If people think tuition is the cost of college, then they have a shock coming when their kids get old enough to go to college. My daughter is attending a state school, annual cost is about $18,500 of that about $7,500 is the tuition cost.

If you are poor, you can qualify for all kinds of scholarships and grants. If you are rich you can afford college for your kids. The ones really taking the hose job are the middle class, they earn to much to qualify for almost all income based scholarships and grants because they make to much money - but yet can't afford $75,000 - $100,000 for their schools.

On top of that if they do plan ahead, then they shoot themselves in the foot under FAFSA and college financial aid rules. For example in the 1990's we established a college savings account (actually prepaid tuition) for each child. Enough to cover two years at a University for each and paid into it for 12 years. (We figured on them helping to pay for the other two years through part-time jobs and summer work.) The down side is that the money you put away is counted toward family assets when if comes to determining expected family contribution. In other words if you save for education, you hurt yourself later on for qualification for assistance.



>>>>

Right there with you. Our son just graduated high school and we are feeling the pinch. I'll take it a little further than you did with the middle class. Middle class white male. They qualify for squat. He will be attending our state university and it will cost in the $16 to $18,000 per year range. He was a straight A honor student who graduated 33rd in a class of 459. The best he could do on an academic scholarship is $8000. That is $1000 per semester for 4 years. That leaves us trying to cover tthe additional $14 to $16,000 per year. We are trying to figure out how we are going to do that.

His high school holds a scholarship night where they announce all the scholarships the seniors received. Good Lord, one hispanic girl got recognized at least 10 times. Two of her scholarships were hispanic in nature. A few were female scholarships. Let me tell you, there are no scholarships for white males floating around out there. Unless you are the star quarterback or first chair in band, you are pretty much out of luck.

He did apply for an engineering foundation scholarship and won it, but it is $500 per semester for the first year. We've applied for a merit based scholarship from the company I work for, but won't know anything until July. It could be up to $3000 per year, but not guaranteed to be that amount.

His ex girlfriend, can go to college for free. Oklahoma has a program called Oklahoma's Promise that you apply for back in like 9th or 10th grade. If your parents make less than $50,000 per year and you make "decent" grades, the state will foot the bill for your education. What is she deciding to do with a bonanza like that? Go to junior college, take some basics and maybe transfer to a university in a couple of years........because according to her, the basics are easier at junior college.

We attended a parent/student orientation a few weeks back and the school was very upfront in saying that the day where a student could work part time and put themselves thru school is gone.

 

[Skull Pilot]

Most college degrees aren't much use as anything but toilet paper anyway.

 

[iamwhatiseem]

Tell me about it...my daughter is in school for Respiratory Therapy...including housing etc. - $17,000 per year.
yeah...let's add that on to our already $62 trillion debt.

 

[kwc57]

Most college degrees aren't much use as anything but toilet paper anyway.

Except a better job, higher pay and a better way of life as evidenced by my family and friends who chose not to go to college as opposed to those who did.

 

[psikeyhackr]

Most college degrees aren't much use as anything but toilet paper anyway.

Except a better job, higher pay and a better way of life as evidenced by my family and friends who chose not to go to college as opposed to those who did.

So the system brainwashes everybody into thinking they have to compete each other to death but can't do something as simple as make accounting mandatory in the schools. The objective should not be jobs it should be NET WORTH. So you have to sabotage your NET WORTH to pay the schools.

So it sounds like a scam just like the automobile industry. Go into debt for junk designed to become obsolete and waste your time watching commercials trying to convince you that the junk is great. Try majoring in engineering and they force you to take Liberal Arts courses that are totally irrelevant but you have to pay as much as for the math and engineering courses. Of course you can't take those at a less expensive school and transfer them.

How much would a National Recommended Reading List cost? But what would that do to the concept of competition if all kids had access to that list? So we have a system designed to sabotage the majority of people. But naturally a lot of people's jobs depend on the system working the way it does now.

We need to rethink the system.

Economic Wargames

Did anyone suggest your son learn accounting in high school. Double-entry accounting is 700 years old. How hard can it be with today's computers? So why shouldn't everybody know it? The accountants don't want everybody to know it so they pretend that it is difficult.

Fifth graders can learn accounting as well as collegians

psik

 

[Skull Pilot]

Most college degrees aren't much use as anything but toilet paper anyway.

Except a better job, higher pay and a better way of life as evidenced by my family and friends who chose not to go to college as opposed to those who did.

I can show you thousands of plumbers who make more than some kid with a liberal arts degree.

WAY more.

 

[whitehall]

A couple of years in the Military will get you a free college education and a whole lot of other benefits. I think the middle class is taking advantage of it more than you realize.

 

[Vel]

The Tennessee Board of Regents just recommended another 9.8 % increase for Middle Tennessee State University. Seems the Obama stimulus cash ran out. MTSU has seen tuition increase more than 100% in ten years.

 

[Zoom-boing]

>


If people think tuition is the cost of college, then they have a shock coming when their kids get old enough to go to college. My daughter is attending a state school, annual cost is about $18,500 of that about $7,500 is the tuition cost.

If you are poor, you can qualify for all kinds of scholarships and grants. If you are rich you can afford college for your kids. The ones really taking the hose job are the middle class, they earn to much to qualify for almost all income based scholarships and grants because they make to much money - but yet can't afford $75,000 - $100,000 for their schools.

On top of that if they do plan ahead, then they shoot themselves in the foot under FAFSA and college financial aid rules. For example in the 1990's we established a college savings account (actually prepaid tuition) for each child. Enough to cover two years at a University for each and paid into it for 12 years. (We figured on them helping to pay for the other two years through part-time jobs and summer work.) The down side is that the money you put away is counted toward family assets when if comes to determining expected family contribution. In other words if you save for education, you hurt yourself later on for qualification for assistance.



>>>>

Right there with you. Our son just graduated high school and we are feeling the pinch. I'll take it a little further than you did with the middle class. Middle class white male. They qualify for squat. He will be attending our state university and it will cost in the $16 to $18,000 per year range. He was a straight A honor student who graduated 33rd in a class of 459. The best he could do on an academic scholarship is $8000. That is $1000 per semester for 4 years. That leaves us trying to cover tthe additional $14 to $16,000 per year. We are trying to figure out how we are going to do that.

His high school holds a scholarship night where they announce all the scholarships the seniors received. Good Lord, one hispanic girl got recognized at least 10 times. Two of her scholarships were hispanic in nature. A few were female scholarships. Let me tell you, there are no scholarships for white males floating around out there. Unless you are the star quarterback or first chair in band, you are pretty much out of luck.

He did apply for an engineering foundation scholarship and won it, but it is $500 per semester for the first year. We've applied for a merit based scholarship from the company I work for, but won't know anything until July. It could be up to $3000 per year, but not guaranteed to be that amount.

His ex girlfriend, can go to college for free. Oklahoma has a program called Oklahoma's Promise that you apply for back in like 9th or 10th grade. If your parents make less than $50,000 per year and you make "decent" grades, the state will foot the bill for your education. What is she deciding to do with a bonanza like that? Go to junior college, take some basics and maybe transfer to a university in a couple of years........because according to her, the basics are easier at junior college.

We attended a parent/student orientation a few weeks back and the school was very upfront in saying that the day where a student could work part time and put themselves thru school is gone.

Have you applied for FAFSA? If not, DO IT. http://www.fafsa.ed.gov/ You might be surprised at what you could qualify for. Also, call the school and talk to the fin. aid department. They might be able to help. I did and got an additional $1,500/yr. dean's scholarship for my daughter (and it's that much for each year, all four years).

 

[kwc57]

Most college degrees aren't much use as anything but toilet paper anyway.

Except a better job, higher pay and a better way of life as evidenced by my family and friends who chose not to go to college as opposed to those who did.

I can show you thousands of plumbers who make more than some kid with a liberal arts degree.

WAY more.

Well yeah......liberal arts degrees qualify you for didily squat pay in the real world. I have a niece working on her doctorate in medieval literature. Her total education will probably cost close to $100,000 when it is all said and done and about all she can do with her PHD is teach medieval literature at a college. I'm sure there are openings everywhere for that skill.

I can show you thousands or doctors, lawyers, engineers, etc who make more than plumbers.

 

[Skull Pilot]

Except a better job, higher pay and a better way of life as evidenced by my family and friends who chose not to go to college as opposed to those who did.

I can show you thousands of plumbers who make more than some kid with a liberal arts degree.

WAY more.

Well yeah......liberal arts degrees qualify you for didily squat pay in the real world. I have a niece working on her doctorate in medieval literature. Her total education will probably cost close to $100,000 when it is all said and done and about all she can do with her PHD is teach medieval literature at a college. I'm sure there are openings everywhere for that skill.

I can show you thousands or doctors, lawyers, engineers, etc who make more than plumbers.

The vast majority of so called college degrees are not in the fields you mentioned.

I have friends that are engineers that barely make 60K a year

My friend who is an electrician made 150K last year

My buddy the auto shop owner made 200K

My friend with a Psych degree made 35K

http://nces.ed.gov/fastfacts/display.asp?id=37

Of the 1,563,000 bachelor's degrees conferred in 2007–08, the greatest numbers of degrees were conferred in the fields of business (335,000); social sciences and history (167,000); health sciences (111,000); and education (103,000). At the master's degree level, the greatest numbers of degrees were conferred in the fields of education (176,000) and business (156,000). At the doctor's degree level, the greatest number of degrees were conferred in the fields of health professions and related clinical sciences (9,900); education (8,500); engineering (8,100); biological and biomedical sciences (6,900); psychology (5,300); and physical sciences (4,800)."]Of the 1,563,000 bachelor's degrees conferred in 2007–08, the greatest numbers of degrees were conferred in the fields of business (335,000); social sciences and history (167,000); health sciences (111,000); and education (103,000). At the master's degree level, the greatest numbers of degrees were conferred in the fields of education (176,000) and business (156,000). At the doctor's degree level, the greatest number of degrees were conferred in the fields of health professions and related clinical sciences (9,900); education (8,500); engineering (8,100); biological and biomedical sciences (6,900); psychology (5,300); and physical sciences (4,800).

 

[kwc57]

>


If people think tuition is the cost of college, then they have a shock coming when their kids get old enough to go to college. My daughter is attending a state school, annual cost is about $18,500 of that about $7,500 is the tuition cost.

If you are poor, you can qualify for all kinds of scholarships and grants. If you are rich you can afford college for your kids. The ones really taking the hose job are the middle class, they earn to much to qualify for almost all income based scholarships and grants because they make to much money - but yet can't afford $75,000 - $100,000 for their schools.

On top of that if they do plan ahead, then they shoot themselves in the foot under FAFSA and college financial aid rules. For example in the 1990's we established a college savings account (actually prepaid tuition) for each child. Enough to cover two years at a University for each and paid into it for 12 years. (We figured on them helping to pay for the other two years through part-time jobs and summer work.) The down side is that the money you put away is counted toward family assets when if comes to determining expected family contribution. In other words if you save for education, you hurt yourself later on for qualification for assistance.



>>>>

Right there with you. Our son just graduated high school and we are feeling the pinch. I'll take it a little further than you did with the middle class. Middle class white male. They qualify for squat. He will be attending our state university and it will cost in the $16 to $18,000 per year range. He was a straight A honor student who graduated 33rd in a class of 459. The best he could do on an academic scholarship is $8000. That is $1000 per semester for 4 years. That leaves us trying to cover tthe additional $14 to $16,000 per year. We are trying to figure out how we are going to do that.

His high school holds a scholarship night where they announce all the scholarships the seniors received. Good Lord, one hispanic girl got recognized at least 10 times. Two of her scholarships were hispanic in nature. A few were female scholarships. Let me tell you, there are no scholarships for white males floating around out there. Unless you are the star quarterback or first chair in band, you are pretty much out of luck.

He did apply for an engineering foundation scholarship and won it, but it is $500 per semester for the first year. We've applied for a merit based scholarship from the company I work for, but won't know anything until July. It could be up to $3000 per year, but not guaranteed to be that amount.

His ex girlfriend, can go to college for free. Oklahoma has a program called Oklahoma's Promise that you apply for back in like 9th or 10th grade. If your parents make less than $50,000 per year and you make "decent" grades, the state will foot the bill for your education. What is she deciding to do with a bonanza like that? Go to junior college, take some basics and maybe transfer to a university in a couple of years........because according to her, the basics are easier at junior college.

We attended a parent/student orientation a few weeks back and the school was very upfront in saying that the day where a student could work part time and put themselves thru school is gone.

Have you applied for FAFSA? If not, DO IT. Home - FAFSA on the Web-Federal Student Aid You might be surprised at what you could qualify for. Also, call the school and talk to the fin. aid department. They might be able to help. I did and got an additional $1,500/yr. dean's scholarship for my daughter (and it's that much for each year, all four years).

Oh yeah, we've educated ourselves and done everything by the book. We make too much to qualify on a needs basis. The only thing our son qualifies for is academic scholarships and like I said, it is a very thin slice of people who get the BIG bucks. You have to be the best of the best to get full rides or even a half ride. He was 33rd in a class of 459, straight A 4.0 honor student, in the 93 percentile, made a 29 on his ACT, an Eagle Scout and has been accepted to the Honors College at his university, but all he qualifies for academically is $1000 per semester and the per semester cost is around $8000+. The only other thing we qualify for are loans.

 

[kwc57]

I can show you thousands of plumbers who make more than some kid with a liberal arts degree.

WAY more.

Well yeah......liberal arts degrees qualify you for didily squat pay in the real world. I have a niece working on her doctorate in medieval literature. Her total education will probably cost close to $100,000 when it is all said and done and about all she can do with her PHD is teach medieval literature at a college. I'm sure there are openings everywhere for that skill.

I can show you thousands or doctors, lawyers, engineers, etc who make more than plumbers.

The vast majority of so called college degrees are not in the fields you mentioned.

I have friends that are engineers that barely make 60K a year

My friend who is an electrician made 150K last year

My buddy the auto shop owner made 200K

My friend with a Psych degree made 35K

Fast Facts

Of the 1,563,000 bachelor's degrees conferred in 2007–08, the greatest numbers of degrees were conferred in the fields of business (335,000); social sciences and history (167,000); health sciences (111,000); and education (103,000). At the master's degree level, the greatest numbers of degrees were conferred in the fields of education (176,000) and business (156,000). At the doctor's degree level, the greatest number of degrees were conferred in the fields of health professions and related clinical sciences (9,900); education (8,500); engineering (8,100); biological and biomedical sciences (6,900); psychology (5,300); and physical sciences (4,800)."]Of the 1,563,000 bachelor's degrees conferred in 2007–08, the greatest numbers of degrees were conferred in the fields of business (335,000); social sciences and history (167,000); health sciences (111,000); and education (103,000). At the master's degree level, the greatest numbers of degrees were conferred in the fields of education (176,000) and business (156,000). At the doctor's degree level, the greatest number of degrees were conferred in the fields of health professions and related clinical sciences (9,900); education (8,500); engineering (8,100); biological and biomedical sciences (6,900); psychology (5,300); and physical sciences (4,800).

I didn't say that people can't do well for themselves without a college degree. They have to be willing to work hard at something that people want or need and they can succeed. Social workers and teachers have college degrees and make jackshit. I know a bunch of homebuilders who made money hand over fist that are suffering right now. Life is about choices and the choices you make will determine what kind of money you make with or without a college degree. A college degree however opens doors that the lack of one never will. That being said, it is still all about the choices you make.

 

[Skull Pilot]

Well yeah......liberal arts degrees qualify you for didily squat pay in the real world. I have a niece working on her doctorate in medieval literature. Her total education will probably cost close to $100,000 when it is all said and done and about all she can do with her PHD is teach medieval literature at a college. I'm sure there are openings everywhere for that skill.

I can show you thousands or doctors, lawyers, engineers, etc who make more than plumbers.

The vast majority of so called college degrees are not in the fields you mentioned.

I have friends that are engineers that barely make 60K a year

My friend who is an electrician made 150K last year

My buddy the auto shop owner made 200K

My friend with a Psych degree made 35K

Fast Facts

Of the 1,563,000 bachelor's degrees conferred in 2007–08, the greatest numbers of degrees were conferred in the fields of business (335,000); social sciences and history (167,000); health sciences (111,000); and education (103,000). At the master's degree level, the greatest numbers of degrees were conferred in the fields of education (176,000) and business (156,000). At the doctor's degree level, the greatest number of degrees were conferred in the fields of health professions and related clinical sciences (9,900); education (8,500); engineering (8,100); biological and biomedical sciences (6,900); psychology (5,300); and physical sciences (4,800)."]Of the 1,563,000 bachelor's degrees conferred in 2007–08, the greatest numbers of degrees were conferred in the fields of business (335,000); social sciences and history (167,000); health sciences (111,000); and education (103,000). At the master's degree level, the greatest numbers of degrees were conferred in the fields of education (176,000) and business (156,000). At the doctor's degree level, the greatest number of degrees were conferred in the fields of health professions and related clinical sciences (9,900); education (8,500); engineering (8,100); biological and biomedical sciences (6,900); psychology (5,300); and physical sciences (4,800).

I didn't say that people can't do well for themselves without a college degree. They have to be willing to work hard at something that people want or need and they can succeed. Social workers and teachers have college degrees and make jackshit. I know a bunch of homebuilders who made money hand over fist that are suffering right now. Life is about choices and the choices you make will determine what kind of money you make with or without a college degree. A college degree however opens doors that the lack of one never will. That being said, it is still all about the choices you make.

Not so you said


http://www.usmessageboard.com/education/171168-surging-college-costs-price-out-middle-class.html#post3752071

And i quote

Except a better job, higher pay and a better way of life as evidenced by my family and friends who chose not to go to college as opposed to those who did.