[From the diaries by susanhu.] State colleges are supposed to represent a value and opportunity for state residents. However, over the last 15 years, states are less responsible for the cost of this education, passing off the costs to students in the form of tuition increases. As a result, students are relying more on debt to finance their education, entering the workforce with higher amounts of debt to pay-off.
Tuition increases are not a new event; they have been occurring for some time. Between 1988 and 1998, the average annual state-sponsored school tuition increase was 4.1%. Over the same period, state appropriations — which comprise 33.4% of total state school revenues — decreased 1% annually. As a result, tuition as a percentage of total state school revenue increased from 22.7% to 31.1% from 1988 – 1998. In other words, the cost of state education is falling more and more on students as opposed to the state governments.
Since 1998, college tuition costs have continued escalating out of control, making college a less affordable proposition for students. The year-over-year percent increases for 2001-2005 were 7.1%, 9.7%, 13.9% and 10.6%, respectively. Over this same time, state appropriates increased at a 4.6% between 2001-2002, decreased 1%, and 2.3% between 2003-2003 and 2003-2004 and increased 3.8% between 2004-2005. In other words, the trend established
Perhaps just as important is the changing methodology for financing education. Between 1990-1991, loans comprised 49.3% of total tuition payments. This percentage increased to 55.8% in the years 2002-2003. As a result, the increased use of personal debt to finance education at a time when tuition is increasing means graduates enter the workforce with a larger amount of debt to pay-off.
To sum up, states are passing off the cost of education more and more to students, who are entering the workforce with increasing amounts of debt.
http://nces.ed.gov/pubs2002/2002157.pdf
http://www.aascu.org/pdf/05_charges.pdf
