...will it take for colleges to set tuition cost at an affordable rate for all students? Higher education is an opportunity in social advancement, yet the cost of college is a barrier that many struggle to get through. In recent years the cost of college has risen 6.5% in the 2008-09 school year. The recent rise in college tuition and fees has made it difficult for students to reach their goal of having a higher education. It is difficult to graduate from college in four years when there are so many barriers holding back students. Higher education is a goal students strive for, yet students hit a road block when it comes to the cost of attending college. Not all students have the privilege of receiving financial aid, which is only given to those of low income families who “[d]o not have the tens of thousands of dollars needed to fund their children’s higher education” (Update: College Tuition cost 2). Some students cannot afford to pay for five classes, so they are left taking one or two classes per semester. Since tuition has been increasing it is “making it difficult for many students to obtain a college education” (College Tuition Cost 1). A college degree is an important asset in obtaining a well paid job, if students are not able to afford it, future generation will not be able to afford it either. The recent rise of college tuition leads students to acquire a debt in student loans. Students have begun using the loans as a last resort to paying for college. This issue has...
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...RAISE OR LOWER TUITION 2 Nobody State University is looking for someone like me to help increase the revenue for their schools. Schools like Nobody State University has seen many battles between helping a student get an education or fallen because of the government is raising taxes on tuition or lowering tuition. It is hurting millions of students that are attending here and it is my job to help find ways to increase the tuition instead of lowering it for students that can’t pay out of pocket expenses. The purpose of this is to find ways to improve the increase in revenue and answer the following questions that Nobody State University wants me to help resolve this issue. 1. Assess a raise in tuition and if it will necessarily result in more revenue. 2. Describe the conditions under which revenue will (a.) rise, (b.) fall, or (c.) remain the same. 3. Explain the process of revenue at NSU, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment. 4. If the true price elasticity were (-1.2), discuss what you would suggest the university do to expand revenue. 5. Using what you have learned in this course, explain how you would resolve this problem if you were the President of NSU. RAISE OR LOWER TUITION? ...
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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...
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...To raise more revenue, Nobody State University increases its tuition so, this would not increase the revenue but it would decrease the revenue. If one increase then the other would definitely decrease. No it would definitely not result into more revenue to have more revenue Nobody State University would have to decline some enrollments in order to increase the revenue. Most likely Nobody States University will not decline enrollment so the cost of tuition would definitely be increased. Under what conditions will revenue (a) rise, (b) fall, or (c) remain the same? Revenue would not fall or remain the same it would increase more likely due to the economic industry. Tuition have risen in the past and it has not stated the same or lowered while economic crisis continues to rise tuition cost would also increase. Explain this process, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment. The tuition fees raises but, it is due to the economic of health care, other industry with a huge cost problem. Both college education and health care have raised sharply in most developed countries not only the United States. The government is the real reason why tuition is raised and it is to replace state revenues or other private revenue sources because state subsides are going down. The student has been rising steady for decades because once subsides get cut...
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...Nicholas Rodriguez Professor Sardoni English 122 16 February 2016 The Rise In Today’s Education Recently, education has become an option for everybody. Not only is it easy for almost everyone to get an education, but there are new ideas that are making education easier for students. There are websites and apps that help college students pick the right professors, many colleges are giving discounts to new coming students, laws are being passed that can possibly make community college completely free, and even inmates behind bars today are getting the opportunity to get a college degree. These programs, laws, and new technology are increasing the amount of opportunities for everyone to get a college education. Education opportunities increasing around the united states calls for a brighter and better future. Today’s college students are tomorrow's leaders. Education is important for everybody. The internet is a huge help for today’s advance in education. It makes everything easier from research to making sure you're making the right decisions. A lot of students today use a website called RateMyProfessor.com. Rate my professor gives all college students a chance to write reviews and rate their previous professors for new students to check out before signing up for a college course. (Stankiewicz). You simply go on the website, type your professor's name of the course you're debating on taking, and can see a full review of the professor from multiple students. These reviews...
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...Nobody State University Tuition Universities must constantly weigh tuition pricing in relation to the cost of providing quality educational services. Determining where to set tuition pricing is an increasingly critical decision which administrators and university presidents must analyze when considering the university’s goals. Not only does the cost of tuition play a factor in student enrollment, it also provides a major revenue source to an institution. The question which universities must answer is, “What effect will raising or lowering the university’s tuition have on the total earned revenue? This paper investigates this question and reviews under what conditions a change in tuition prices will cause the revenue to rise, fall, or remain constant. Finally, applying a hypothetical tuition elasticity coefficient of demand for education value of -1.2, provides a tuition increase recommendation to the Nobody State University’s president and administration board based upon the university’s potential revenue impact. Historically, the demand for a university or college education has not reduced as prices have risen. In fact, even though prices have gone up, the number of college applicants has continued to rise. Meagan Pant writes in her article in the Tribune Business New, “The majority of Americans think college is too expensive for most people to afford -- although the widely held opinion has not hindered skyrocketing enrollment or stopped virtually all parents from expecting...
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...Setting Tuition and Financial Aid by Ronald J. Sanders HCM-540, MBOL5, Health Care Organization Instructor: Wenyuan Teng Saint Leo University Distance Learning November 3, 2013 Abstract A college board in Pennsylvania has increased its tuition and fees to the amount of $23,460; a 17.6 increase from the previous year. An increase of 200 additional students inquired to further their education at the college than the prior year. Most college presidents would attribute this to students believing the college is better if the cost is more. Like other major colleges such as Rice University, University of Richmond and University of Notre Dame, the perception is students of prestigious schools believe costs are related to a better education. To contrast this, 10 years ago, North Carolina Wesleyan College reduced it cost of tuition and fees by 22 percent and watched its number student application fall. Recommendations to resolve the school’s cash flow problems may include the future increase of tuition and fees. This case study deals with the managerial decision of setting tuition and financial. Many factors are associated with demand and price elasticity of demand. There is an economic relationship between demand and price? After reading this paper, student will have a better understanding of those things that may affect tuition and fees for colleges. Introduction An individual can demand so many things. The concept of demand can be easily explained. Every...
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...College tuition is a nightmare among people seeking a higher education. It is not decreasing; in fact, it has been on a rapid nonstop rise since 1978. Tuition is a growing concern since many of the job openings require some sort of college degree to even be considered for the job. Today’s society has made college appear as a requirement in order to succeed in life, but in order to succeed one must go bankrupt paying for it. Since the institutions are allowed to set rate on tuition it is only becoming more difficult for students pay. As a result, students have to seek alternative ways to cover the hefty costs. It seems as tuition went from affordable to sky high overnight and because of such an exponential increase it has forced a negative effect on students by: having to join the military, taking out student loans, developing health issues, and even selling drugs....
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...confidence in many of our most important institutions including our colleges and universities. A common criticism focuses on how education expenses continue to rise in America. Although America continues to be one of the most educated countries in the world, we have fallen behind in the percentage of young people with a college degree. As the numbers of problems have increased over the past decades, many constituencies of the higher education system have searched for stronger managers and visionary leaders. Colleges and universities need leaders and managers who can turn their visions into realities (Pietrucha, 2012). It is wise for leaders to start thinking about the needs of their followers who require support, encouragement, and reassurance and guide them through this period of vagueness and uncertainty. Summary of Political Arguments A recent political argument, the post-trillion dollar status achievement in the area of student loan debt shows no signs of reversing itself. In 2010 there were $100 billion in education loans taken out by U.S. citizens (Pietrucha, 2012). The rate of higher education cost has increased at a rate three times that of inflation over the last two decades, with average increase in college tuition around four percent annually (Pietrucha, 2012). Notwithstanding, government is continuing to encourage young people to take out higher education loans in their continued pursuit of a college degree. In his speech in Ann Arbor, Michigan, President Obama offered...
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...profit institutions carried education debt of $30,500 or more during the 2007-2008 academic year, compared with 24 percent of those at private four-year institutions and 12 percent at public four-year schools” (Clemmit). A college education is meant to prepare people for a desired career where they can hope to attain the American Dream but unless you come from a wealthy family, paying for this education could take the rest of your life. With constant budget cuts in education, universities are forced to increase tuition prices dramatically which results in students graduating with large amounts of debt and no guarantee of a job to pay it off. Raising tuition prices is unfair to the students hoping to accomplish their dreams and live life the way they choose. Universities are taking advantage of people coming out of high school willing to do whatever it takes to prepare themselves for the career they desire. Something should be done to stop these schools from raising prices so high that taking a loan out is a common practice to pay for school. American families are having a hard enough time as it is with the recession and the housing market fallout to even consider putting more debt on their already sinking credit. The government should recognize that with tuition cost rising so much, less people are pursuing a higher education. Education is one of the most important aspects of a first world country. If a student is...
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...College Tuition: Fighting the cost of college tuition Imagine having your dream job with good pay and everything you have ever wanted. However you end up with thousands of dollars in debt due to college tuition being so expensive. With the price of college tuition being expensive, more jobs are having higher standards in who they are hiring. Which results in more kids going/wanting to go to college. With colleges knowing this, they start to raise their tuition rate. College tuition has become too expensive for the middle-class family to afford. The cost of tuition is rising and will continue to rise. Most schools are continuing to increase the cost of tuition while spending money on things that are not going towards the students. Such as...
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...8/31/2014 MBA-540 Chapter 4: Setting Tuition and Financial Aid 1. Evaluate Susan’s analysis and recommendation. At first sight it is easy to see why Susan would believe that the demand for applying to a college increases when the cost of tuition is increased, based off the statistics seen at colleges such as Ursinus College and Wesleyan College. Ursinus increased the cost of tuition and the demand increased. Wesleyan did the opposite and decreased there tuition and the demand decreased. Susan’s belief in an upward slope, where the quanitity demanded increased with price, is seen as a Giffen good. Giffen good is when “a good for which a demand increases as the price increases and falls when the price decreases” (Investopedia, 2014). This contradicts the law of demand. As discussed in the text the law of demand refers to the demand curve sloping downwards because individuals buy less of a good and not more when the price increases (Brickley, Smith & Zimmerman, 2009). Giffen good is very rare to the point where there is actual debate about their existence, because the good in question must be considered an inferior good and there must be a lack of close substitutes (Investopedia, 2014). It would be irresponsible as a consultant to make a decision based on just Susan’s theory, especially when there could be other factors that not being considered for the affects of this demand increase over the increase in tuition. It is important to consider all the factors...
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...always concerned over rise in prices of commodities as it reduces the purchasing power of people. If high inflation of commodities is considered bad and taken so seriously, why is that they haven't paid much attention towards the rising inflation in tuition fees? Like inflation affects the willingness and purchasing power of people, tuition inflation is affecting the cost of attending college. Extremely high tuition fees are acting as obstacles for entering a college or a professional course and turning it into a distant dream for many people. Even if some of them are fighting against the odds and arranging financial assistance for their education, it does not change the fact that education has become too expensive. It is making situation more tedious for parents saving for their child’s education as they are unsure how much should they save now that will be able to meet the inflation of tuition fees when their child graduates from High School. Researches show that since 1986, cost of tuition fees or tuition inflation has risen a massive 498.31%. In 1986 the cost of tuition fees was $10,000, now a days due to inflation it has increased to an approximate $60,000. This is not just inflation; it is ‘disproportional’ inflation. In a situation, when inflation in a particular sector of economy exceeds general inflation, where form 1986 to 2010 general inflation has only risen 115.06%. Statistical data reveal that considering any 17 year period from 1980, tuition inflation has been in...
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...average $7,900 tuition, fees, room, and board fee increase in public 4-year colleges in the United States (Tuition and Fees and Room and Board over Time). According to The Department of Education, about 40% of college students in the middle class achieved their bachelor's degree within 8 years. That is about 60% that dropped out because of financial issues, low grades, or illegal behavior. The cost of college education is rising, which is why it should be free. Students often cannot attend college because not everyone can qualify for federal help, the tuition and housing cost rising each year, many students having to pay their phone bills and be able to pay for other...
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...privileged. Social perception has modified the previous thought into believing that to enter the “middle class” that a person must have a college degree, more specifically a bachelor’s degree. Every year the amount of Americans attending higher education rises, yet the United States now has the highest college dropout rate in the world with only 56% of college students completing their bachelor’s degree within a six year timeframe (Pathways to Prosperity, 10-11). Each year the odds that an individual choosing to attend a four-year university will dig their own financial grave by not graduating increases due to the continuing steep rise in tuition. The long term effects of this will create an ever widening gap in our economic classes causing a continual imbalance of higher percentages of persons in the lower economic class and a lower percentage in America’s middle class. Several factors attribute to why this shift is continuing to increase speed with increased tuition costs at the epicenter. In 1980 the average cost for tuition, room, and board for a four year institution adjusted for 2010 inflation was $8756 (nces.ed.gov). This cost has risen almost 250% in constant dollars to $21,093 while the average middle class household income has only risen 11% when adjusted for 2011 inflation ($55,873 in 1980 to $62,434 in 2011) (census.gov). With tuition rates rising at double the inflation rate on average this instigates a worse economic situation for those who do not graduate or are...
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