In recent years, the percentage of Americans with a college degree has decreased to around thirty-four percent, it is the result of various factors that contribute to the increase in college dropout rates. Increasing tuition rates have negatively impacted students enrolled at a university since 1997 when there was a spike in tuition costs. In the early 2000s, tuition increased by nearly forty-five percent nationwide. Due to this rapid increase, several students were forced to drop out or transfer because they could no longer afford their education and many high schools graduates could not move onto higher education. However, Ben Ho and Sita Slavov, in their article “The Bright Side of Higher College Tuition,” argue that higher tuition costs are not a negative impact because students who need assistance are eligible for financial aid and grants and they are likely to receive it. On the other side of things, Sara Goldrick-Rab stands firm that only low-income students and families benefit from financial aid because middle-class families are cut short because they technically make enough to send their kids to college without accounting for other expenses not related to college. As tuition rates continue to increase, the costs of a higher education negatively impact students within the U.S. Due to the rising rates, college dropout and transfer rates have increased, less people receive a college degree, and students struggle to get on their feet post-graduation because of large loans. This issue is especially relevant today and could potentially affect future generations.

With an unsteady economy and rising tuition costs, students are struggling to pay for college out of pocket and as a result they are resorting to student loans. These loans can be beneficial when used in small amounts, however, some students obtain loans that cover their full tuition. Because students do this, they find themselves drowning in loan debt post-graduation. Due to their hefty student debt, graduates struggle to get on their feet. In “The Ripple Effects of Rising Student Debt,” an article published by The New York Times, Phyllis Korkki states that student loan debt affects their life decisions once they graduate. Collective studies have shown that people with student loans are not as likely to start a small business as those who don’t. Since an individual can only take on so much debt, people in their thirties are less likely to purchase a home. In his article, Korkki states, “Total student loans outstanding have risen to $1.1 trillion, compared with $300 billion just a decade ago, according to the Fed’s study.” This drastic increase is significant because it reflects the rise of tuition costs and the negative impact it has on an individual. A smaller problem that is revealed in Josh Freedman’s article, “Student Loans Are A Drag On The Economy And Society,” is that there are several students turning away from a higher education due to the consequences of student loans. Freedman states, “Low- and middle-income students worried about the consequences of taking out a loan will be more likely to decide that college attendance is not worth the risk.” Because loan rates are high, students are choosing to skip out on college. Both Korkki and Freedman present different takes on the negative impact that increasing college tuition has on graduate students. While different, they both show that the issues presented can have very similar roots. When tuition costs skyrocket, graduates’ life choices are negatively impacted. 

On the other hand, there are people that believe there are benefits that come from student loans. In the article, “3 Reasons to Give Thanks for Student Loans,” Ryan Lane discusses the positive side of student loans. Lane’s three reasons are as listed as “student loans help you pay for college,” “loans can help establish and build your credit score,” and “certain student loans come with repayment benefits.” He compares them to Thanksgiving because people should be grateful for student loans. He references The Wall Street Journal, saying that 70 percent of graduates in 2014 used student loans. Lane argues, “It’s understandable if you think that number is too high. However, you should also think about what that 70 percent would have lost if they didn’t have loans.” It may be true that student loans help students pay for their tuition up front, but he does not acknowledge the negative impact of student loans, like not being able to take on even more important house loans in the future. In a study conducted by The Ohio State University’s research team, results showed that student loan that accumulates over the years leaves 70 percent of students surveyed stressed. When they asked 13221 students, who attend public universities, if they once or currently have student loans, the research team found that 63.2% of students said yes. Students were later asked if student loan debt affected their decisions post-graduation, such as post-college career selection, whether to pursue a professional or graduate degree, and to take on additional consumer debt. After analyzing the data and results from the study, the results prove that increasing tuition costs that coincide with student loans have a negative impact on students while in school and post-graduation. 

Furthermore, students find themselves not receiving enough financial aid or scholarships to help cover the costs of tuition. Most schools nationwide do not have a fixed tuition rate once you attend the university your freshman year, meaning your tuition will go up each year that you are there. While this happens, universities often do not offer more scholarship money or financial aid to compensate for the higher tuition. In a YouTube video produced and uploaded by CNN, Steve Perry argues that tuition continues to be costly despite the assistance students receive from scholarships and financial aid. Perry states that while the federal government makes some grants available, it is not enough to cover tuition costs. As a result, students are coming home after their second year because they can no longer afford it. Likewise, Sara Goldrick-Rab discusses the differences of financial aid based on income in her article, “Public Higher Education Should Be Universal and Free.” Goldrick-Rab argues, “On the one hand, students deemed deserving of help receive aid that is usually far short of the resources required to effectively pursue their studies and graduate. On the other, students from middle-class families are treated as if they can manage with loans alone.” Because most middle-class families make around $150k a year in total income, federal agencies, such as the FAFSA, assume that they are able to pay for college out of pocket. This is not always be the case, which is why it is an issue that is relevant to today. Both Goldrick-Rab and Perry argue that the financial aid and loans awarded are not enough for students to deal with increasing tuition costs.

Despite the said issues, there are benefits that come out of financial aid. Financial aid can come from different places, like the federal or state government. It also comes in different forms, such as a work study program or loans. In their article, “The Bright Side of Higher College Tuition,” Ben Ho and Sita Slavov argue that even though tuition costs consistently rise, most students end up not paying the sticker price that is advertised. They claim, “In reality, only the relatively wealthy pay the high sticker prices. The prices that most students pay are lowered – often quite dramatically – by financial aid.” Ho and Slavov are not wrong when they say that most students do not pay the sticker price. However, not everyone’s tuition is dramatically decreased by financial aid because not everyone benefits from it if they are not eligible to receive it. In his article, Robert Farrington simply states, “Too poor for college, too rich for financial aid.” Colleges and universities give away scholarships and grants to most people, however, it’s not always enough to help cover the costs of tuition. At the same time, middle-class families are classified as too rich for financial aid because they technically make enough to send their child to college. When calculating the loan amount, FAFSA uses a specific equation, but they do not account for retirement plans, 529 plans, and other family expenses. Because they are not accounted for, many families are shorted of the money they need to send their kids to college.

In addition, due to increasing tuition costs students find themselves dropping out of college or transferring back home their second year because they’re no longer able to afford their education, or are not attending college at all. Steven Hemelt and Dave Marcotte researched the impact of tuition increases on enrollment at both public and private universities. In their research, they found that the relationship between tuition increases and enrollment was directly related. Hemelt and Marcotte argued that the amount of financial aid offered to a student impacted their decision as to where they would enroll. Referring back the CNN YouTube video that was previously mentioned, Perry mentions in the segment that many students end up not completing their college education largely because of costs. He claims that kids are borrowing as much money as they can through loans so that they can afford college, and if the loan isn’t enough, choosing not to attend school becomes a more viable option. Perry states, “Our children are struggling to make the basic tuition payments. They’re coming home in their second year because there isn’t enough. The federal government has made some grants available but it hasn’t been enough to meet the rising costs of public education and private education.” Steve Perry, Steven Hemelt and Dave Marcotte claim that tuition costs are directly related to enrollment. Many kids find themselves dropping out and not completing their degree to graduate because they find themselves not being able to afford the costs of a higher education. 

It’s hard to argue that students are not dropping out of college for a variety of reasons. Not only students dropping out after the first year, or find themselves not finishing out their degree, students aren’t enrolling in school in general. (I had a source but I need to find a better one to use).

The first time I visited the University of South Carolina my junior year of high school, I immediately fell in love with the school. However, I’m from Ohio and the sticker price for out-of-state students though my mom and I off. My mom considered it my reach school, I could only go there if I got a lot of financial aid. Once I was accepted, I learned that I had received a scholarship. While it was great to receive, it still was not enough. Fortunately, my parents are in the position where they can help out and they helped me get student loans. In the following years, people can only expect tuition costs to get higher. Many people are aware of the effects rising tuition has, but not everyone has knowledge of how it negatively impacts college students while in and post-graduation. Rather than making public higher education free, it should be made more affordable and universal. Both federal and state governments are responsible for making budget cuts that negatively impact public universities, often causing the tuition rates to sky rocket. If less budget cuts were made, school could potentially be more affordable to all students, less students would take on loans that they cannot afford, and more students would stay in school rather than drop out. The negative impacts of rising college tuition are important because it affects not only the students but society and the economy as well. If not as many students get bachelor’s degrees, there will be positions that aren’t filled. 
