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Why Is College so Expensive?

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Submitted By youngerica26
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Why is college so expensive?
Presentation Rationale
Purpose: The purpose of this speech is to inform my audience of why college is so expensive and the information I discovered of how college tuition has gotten out of control over the last decade.
Intended Audience: My audience for this speech are students and parents who want to know what is causing tuition to rise and want to know what they can do about it.
Significance: This topic is very significant to my audience because the cost of higher education is increasing every year and for many becoming unattainable due to the cost. This is relevant because if the government and the Department of Higher Education can find ways to lower the cost. Then people can further their education which can help other areas such as unemployment.
Presentation Plan
1. Introduction
a. Attention-getting opening: Imagine back in 1984, the year I was born; the cost to go a 4 year college was only roughly $2,567 a year according to the National Center for Education Statistics (2007). Now jump to present day the average to go to a 4 year college is approximately $112,000 in 4 years (Forbes, 2015). That is over a 109% increase. Where is the money going? To put this in perspective during the same time period medical care increased by 117%, a new home 90% and the median for families incomes only increased by an average of 70%.
b. Thesis Statement: Research shows that higher education is one of the most costly investments that Americans make. Because in the past decade college tuition has increased three times as fast as the consumer-price index and twice as fast as medical care (Belkin, 2013). But what is causing the inflation and how is financial aid being impacted.
c. Preview of Main Points:
i. What is causing the inflation in college tuition and why? ii. Students that pursue college degrees are graduation with mounting student loan debt, how is financial aid helping?
2. Main Point 1:
a. One important factor that is impacting the rise of college tuition is the lack of financial support state governments to the public colleges and universities (Belkin, 2013).
i. For example, during 1987 to 2012 the government support in Ohio has declined from $8,497 to approximately $5,906 per student (Belkin, 2013). ii. Student aid accounts for most of the tuition increase between 1987 and 2010 according to the Nation Bureau of Economic Research (Wexler, 2016).
b. Another factor that is raising the cost is the demand of higher education in the market (Heller, 2013).
i. The increase in university prices was the result of cost push inflationary pressures, which is a direct result of prices of goods rise and there is no substitute good or service ( Heller, 2013) ii. With the increase in supply the demand didn’t increase as rapidly causing the tuition prices to rise more rapidly than enrollments (Heller, 2013).
(See visual figure 1 below)
3. Main Point 2:
a. Over the past five decade the federal student financial aid program has grown to help millions of student pay for college (Heller, 2013).
b. With the increase demand of financial aid program the cost of loan to skyrocket from $14.7 billion in 2007-08 school years to approximately $34.8 billion in 2010-11 school years (Heller, 2013).
4. Conclusion
a. Restatement of thesis: Higher education is one of the most costly expenses. But there are many factors that contribute to the raising cost. For example, the price to attend a four year private college has increased 181 percent, a four year public college has increased 268 percent a 2 year community college has increase 177 percent. And one relationship found is that with the increase demand of financial aid tuition will continue to increase.
(See visual figure 2 below)
b. Summary of main points:
i. State government for public university and colleges need to contribute more to help bring down the tuition cost. ii. With federal loan program impacting the increase of tuition prices, there need to be borrowing limits that don’t impact student that aren’t using the programs.
c. Closing comments:
i. There are multiple factors that cause the inflation of higher education but universities need to work on making college more affordable for students. The federal loan programs are a necessity for many people but it shouldn’t increase the cost of attending a college. ii. There are also options student can do to help lower the cost of college. For example you can take advantage of in state tuition and fees instead of going out of state, also you can try to complete your degree sooner than the four year allotted.
Scripted Audience Questions
1. Question #1: What is one other option not mentioned that could save me money on college?
Answer: Scholarships – There are several local funding options in your state and maybe even through you employer; you just have to do a little research.
2. Question #2: What is one mistake when applying for financial aid?
Answer – Not applying or applying for too much and not financial being able to pay it back.
3. Question#3: Why can’t college be free?
Answer: Currently college educations are optional. But with the growing demand from employers to hire individuals with a degree, I believe that the burden of college should be split between the student and the government.

Figure 1: Effect of demand shift on higher education market (Heller, 2013) Figure 2: Changes in annual tuition prices in constant (2011) dollars, 1981 to 2011 (Heller, 2013) Citations
Belkin, D. (2013). How to get college tuition under control. Retrieved from http://www.wsj.com/articles/SB10001424127887324549004579068992834736138
Heller. D. (2013) Does Federal Financial Aid Drive up College Prices? Retrieved from https://www.acenet.edu/news-room/Documents/Heller-Monograph.pdf
National Center for Education Statistics. (2007). Average undergraduate tuition and fees and room and board rates. Retrieved from https://nces.ed.gov/programs/digest/d07/tables/dt07_320.asp
Onink, T. (2015). College Costs Could Total As Much As $334,000 In Four Years. Retrieved from http://www.forbes.com/sites/troyonink/2015/01/31/college-could-cost-as-much-as-334000-total-in-four-years/
Wexler. E. (2016) Why is tuition so high? Retrieved from https://www.insidehighered.com/news/2016/02/09/study-increased-student-aid-not-faculty-salaries-drives-tuition

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