Motivated students know that getting a tertiary education is a significant personal milestone. Degrees are highly coveted in the United States and require substantial financial investments to receive this vital marker of qualification. In this article, Adam Ferrari comments on the rising cost of tertiary education, its impact on students, and the resulting consequences on the job market in several key industries.
The Rising Cost of Tertiary Education
It’s no secret that the cost of attending college is rising at a substantial rate. In the last ten years alone, costs have risen anywhere between 25-30%. On average, a student will spend $48,150 a year to attend a private college and $21,370 to attend a public institution.
With rising costs comes rising debt. Because college is so expensive, many students and families are unable to pay for tertiary education outright. Not only has this ignited a national concern about the student debt bubble, but it’s also caused students to question whether or not a college degree is worth it.
Impact on Students
While some students are turning away from the traditional college approach to other options such as trade school and online skill-learning programs, earning a college degree remains a strong investment for many students. Individuals with a bachelor’s degree make 80% more on average than those with just a high school diploma.
However, these higher wages don’t entirely remove the effects of rising costs on the student population. Among students that borrow money, the average debt at graduation is in excess of $25,000. This leads to average student debt payments of $269 per month and usually accounts for about 10% of their discretionary income.
Further, there are significant mental health impacts of rising college costs—especially for borrowers. 53% of high debt students experience depression because of their debt. 9 in 10 borrowers have significant anxiety due to their loan burden. And most disturbingly, 1 in 15 students in debt consider suicide due to their student loans.
Job Market Consequences
For many industries, the rising cost of education is pricing students out. Additionally, many industries have become so competitive that good-paying jobs aren’t available without education further than a bachelor’s degree. Today, many executive positions require a master’s degree or above, even for consideration.
The rising cost of tertiary education has large effects on students, the job market, and the economy as a whole. As prices continue to rise, students are forced to take out more and more debt, which puts pressure on both the individual and the loaners. While a college degree remains a priority for many students around the United States, the consequences of pursuing a college degree are more severe than ever before.
About Adam Ferrari
Adam Ferrari is the founder of the mineral acquisitions company Ferrari Energy. He is a chemical engineer by degree and is an accomplished petroleum engineer by profession. He also has experience in the financial sector through his work at an investment banking firm. Under his leadership, his company has supported numerous charitable organizations, including St. Jude Children’s Hospital, Freedom Service Dogs, Denver Rescue Mission, Coats for Colorado, and Next Steps of Chicago. Adam Ferrari is also the founder of The Adam Ferrari Health Science Scholarship, which aims to empower students who wish to study health science in college with the goal of providing better care for patients with physical disabilities. More information about the scholarship can be found here.