Penn State tuition has increased close to three thousand dollars since 2009, averaging 2.7 percent but tuition costs are predicted to continue to rise. For the 2014-15 school year Penn State University has approved a budget built on a 2.99 percent increase in base undergraduate tuition rates at the University Park campus. Barron hopes to find a balance between the educational quality and the hope to keep the tuition as low as possible, however that does not mean that tuition costs will not rise. Although the tuition costs increased, officials shared that over thirty million dollars of expenses were taken out of the budget before the tuition was increased, however it was decided that for an average Penn State student the cost of attendance at University park would be around $27,200, including housing, dining and other fees. For a public university, it is ranked as having one of the highest costs in the nation however Penn State officials mark this increase of tuition as a result of stagnant state support.
The state allocated Penn State nearly $290 million for the new year, which is typically used to reduce the price of tuition for in state students, being the third straight year of level funding after a cut of nearly twenty percent in 2011-12. Although the 2.7 percent increase of tuition still affects the students, it is the second lowest percentage rate increase since the 1960’s. As the student tuition increases, as does the salary of those employed at Penn State. The net spending growth allows for a three percent increase in the salary of Penn State staff and officials. Why is it that the students have to pay an increased tuition for it only to go to teachers salary? The benefits being that professors have more of an incentive to provide good education, that it would allow the professors and staff who, based on merit, would receive an increase in salary, also the increase in salary accounts for the increase of other aspects of faculty life such as health care. The downside is that students are required to pay more for their education, an education that most cannot afford, and are also expected to pay the expenses, health care and energy costs, that faculty pay.
Many articles focus on the idea that although tuition prices are still climbing that they are climbing at a slower pace than they did for the past several years, and that the amount of money borrowed for schooling actually decreased in a report by College Board. Although the rate at which prices are increasing is slowing down, it does not mean that the price of college is not a worry. On average, public four-year colleges, the tuition prices are 3.25 times higher than they were thirty years ago, while at Penn State there was a 2.7 increase in the past 8 years.
Tuition prices are typically what is focused on when asked how much college costs, but what is often forgot is what the student actually pays after grants, loans and tax deductions. The average net price and published tuition has had an increasing difference throughout the years due to federal government boosted aid to students. The net prices were rapidly decreasing while tuition were increasing rapidly. At public four-year institutions, the average net tuition and fee price rose about $1,000 in the past five years.
How do these budget cuts affect the Penn State Students and the Penn State community? Higher tuition means larger student debt, which means an increase of interest, and results in a longer time for the student to pay off the debt. Increasing student tuition causes a snowball effect on not only the student’s financial standing but quite possibly their career and future. It is noted that the total education borrowing has decreased by 8 percent in the past year, however it might be explained by the dip in enrollment, where enrollment levels dropped by four percent between 2010 and 2014. In the past several years, the percentage of loans making up student aid packages has slowly declined as the percentage of grants has grown. Federal grant aid rose from 30 percent 2007 to 40 percent in 2014. Nearly 60 percent of students who graduated with a bachelor’s degree in 2013 from public schools graduated with debt, on average $27,300 borrowed, which is a 13 percent increase in the past five years. The price of tuition continues to rise, as does the amount of student debt students are accumulating, but how does the educational system handle this increase and what is being done to help the students balance a more expensive education?
https://www.insidehighered.com/news/2014/11/13/report-shows-slowdown-tuition-increases-education-borrowing
http://www.pennlive.com/midstate/index.ssf/2014/07/penn_state_trustees_approve_bu.html
http://www.theatlantic.com/business/archive/2012/02/is-financial-aid-really-making-college-more-expensive/253153/
http://www.pennlive.com/midstate/index.ssf/2014/07/penn_state_base_tuition_rate_t.html
This is a very interesting post! I’ve been trying to keep up with the tuition increase info and this post was very helpful. I’ve been hearing from a few friends that are looking to go to college that if they keep upping tuition and all the other costs that they will just go to community college or no college at all because they don’t want to have to deal with the huge amounts of debt they will be in. I understand why the up tuition, but if it’s already at a state and maybe even country level high, why continue to up it?
It is definitely alarming how much tuition prices have been rising in the last few years and are continuing to rise. You brought up some really interesting statistics that I hadn’t been aware of, like how tuition isn’t increasing as quickly, but is still going up. It’s horrible to think about how long some students will be in debt because of their schooling and how much interest they’ll have to pay. This was a great post on a really relevant topic. Great job!
Helena, this is such a hot button issue and I am really glad that you wrote about it. Just yesterday, I met with my advisor and was asking her the feasibility of double majoring in Secondary Education for Math as well as straight Mathematics. After completing my education requirements, I would only need several more credits to have reached all of the requirements for a math major. However, new to Penn State and many other colleges, even if I have met all of the requirements, I still need 18 more credits, outside of my original major, to receive a second major. I would end up taking random classes that do not get me ahead, but that just simply help me reach the credit mark. All of this is due to colleges striving to enhance their finances. The longer we students stay, the more money they receive with each credit. I think that it is a travesty the amount of money that students and parents are required to pay to receive an education. It is a constant stressor for me and for many others and I sincerely hope that as you said, the increase in tuition remains slow and steady. It is already ridiculously high for a state university. The more tuition rises, the more college will be only for the wealthy, and the circular loop brings us back to an era I thought we were trying to move beyond.
To me, the entire tuition issue seems to be like a tug-of-war between the university and the government but at the same time, a domino effect is seen. Personally, I believe the government should directly fund the school and lower our tuition costs. By having the government fund the students, it is hard to pinpoint exactly how much each student will receive and that could be unfair to some students. Lowering tuition can also result in less debt, allowing students more freedom to do what they want after graduation without a burden.