College Tuition Benefit Analysis

Introduction

College tuitions increase is not a recent phenomenon in America. In fact, this inflation of college fees started, at least, a century ago, but it was not until the 1970’s when the tuition fees grew enormously, even faster than the rate of inflation. At the moment, college tuitions in the United States of America are exceedingly elevating, which causes some people not to apply for university or college and just rely on their high school diploma to apply for a job. Moreover, these high fees have been the reason that many families went into debt in order to pay for their children to attend university. Furthermore, a holder of a Bachelor degree earnings is relatively higher compared to those of a high school diploma holder. As college

Furthermore, Li (2013) noted that by 1999 workers with higher education earned a higher salary by 1.8 times more than a worker with a high school degree. However, as the demand for higher education have been increasing, in the past few decades, the increase in the total spending of universities and colleges on their facilities and faculties are correlated to the higher fees that students have to pay for their tuitions. Additionally, according to Li (2013) high school and SAT completion has increased from 83.9 percent in 1980 to 89.8 percent in 2009, consequently, this increase resulted in an increase in the demand for higher education. Moreover, universities do not accept all applicants even if they are able to pay full tuition fees, however, they only accept eligible students thus, as a result, the market becomes more competitive. Furthermore, as the wages in industries increase universities must increase wages as well in order to stay competitive in the market (Li, 2013). Therefore, this increase in wages will result in higher fees for students. In addition, Li (2013) claims that even though university prices have increased, demand has been increasing rapidly as well. Thus, this increasing demand for higher education has resulted in a rapid increase in fees as well. In addition, technological advancement favor highly educated workers more than anyone else as these people are capable of dealing with the innovative machines and advanced technology and are able to make most out of them. Furthermore, as Li (2013) mentioned that being a skilled labor such as a university professor implies being highly educated, in this case, the cost of hiring professors has increased which eventually lead to an increase in the overall cost of higher