23.03.2015 · Problem of Rising Higher Education Costs

It was about the decline of America through the derogation of the American education system.

I don’t know how everyone else stays in touch with what’s happening in the real world, but I have two ways. One, I go home to my farm every weekend and I farm, I raise cattle, I put out big bales of hay, which I did at 6:00 a.m. yesterday morning. I go to the local country store and I listen to people. Second, every week I leave the governor’s office and go to a nearby school, a predominantly African-American middle school that is located next to a public housing community. I work with a young man in the sixth grade. I am his mentor. And I have done that for years and years. It is a way for me to stay in touch. People in education, in higher education, need to have ways to do that - all of us do.

The solution to the diverging trajectories of cost and revenues isgoing to have to come at least as much on the cost side. Highereducation must become more productive, through sectordifferentiation, more attention to the economies of scale, andrigorous cost control that constrains the natural inclinations ofhigher education always to do more and better, at more cost.

Although America claims to give an equal education to all, regardless of any external factors, economic class often plays a role in what type and how good of an education a student may receive.

New Factors Influencing Higher Educational Costs and theWillingness or Ability of Governments to Meet Them

Demand for a college education has increased partly because graduating college dramatically increases job prospects and partly because of government subsidies. Although many believe subsidies will make college more affordable, government subsidies actually contribute to rising costs. “When you subsidize something, it’s cheaper for people to consume. So people consume more of it and demand rises,” Professor Lin says. A rise in demand will mean a rise in costs.

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Colleges have no trouble filling seats, even with rising costs, so they keep spending and increasing tuition. Improvements to campus facilities and the addition of more administrative staff make college tuition even more expensive without necessarily improving the quality of education students receive. We now know the root causes of rising tuition—promises of higher wages and increased subsidies. Professor Lin contends that this information should be used to seek solutions.

Cost of Education Essay - Anti Essays

Levy, D. C. 1986. Higher Education and the State in LatinAmerica. Chicago: University of Chicago Press.

“Universities are not trading in higher education; they are increasing fees to cope with rising costs in a context of declining – in real terms – state funding,” Ouma says.

He says various policy documents, including last year’s report of the Ministerial Committee for the Review of the Funding of Universities, acknowledge that block grant allocations to universities have not kept pace with inflation or with student enrolment growth.

A report on the high cost of college education in America Date: ..

Postgraduate tuition fees range from R16,250 for a doctoral course to R85,000 for an MBA at the UCT Graduate School of Business.

“In other words, the university does not charge additional fees for items or services such as transport or fieldwork costs, internet or Wi-Fi access, levies, laboratory fees, PC lab access fees and instrument costs,” Geldenhuys says, adding that from 2008 until 2014, UCT’s fee increases in real terms amounted to 3% a year.

Implications of rising costs

The increase in tuition fees does not equate to the “commodification” of higher education, says Dr Gerald Ouma, director of institutional planning at the University of Pretoria.

Ouma says the cost of higher education can be kept low in South Africa if universities were to cut costs, ..

The allocation to the NSFAS will increase from R5 billion last year to R6.6 billion in 2016-17.

“In our country, higher education is recognised as a public good and is therefore highly subsidised by the state, given our history,” Mabelebele says.

He says the impact of rising costs has also been felt from the rand-dollar exchange rate on the cost of library holdings, as a result of most books and materials for libraries being bought from dollar-denominated countries.

“Increases in student fees have had adverse consequences on students’ ability to access higher education and for those in the system, a low throughput rate has led to high drop-out rates,” he says.

While South Africans find higher education in the country expensive, Mabelebele says the cost of university education is comparatively low compared with international institutions.

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“In an unequal society such as South Africa, higher education is the only great leveller between the rich and the poor.”

All institutions should consider a number of factors to determine the students’ full cost of study.

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But it admits that tuition fees have risen by a certain percentage and that this occurs annually, though it varies among institutions, to keep pace with the costs of running universities.

The cost of higher education is certainly cause for concern in South Africa, says HESA director Dr Jeffrey Mabelebele: “That is why we relentlessly advocate that the state must increase its spending on higher education as a proportion of GDP [gross domestic product], and optimise access of the majority on merit, rather than socio-economic status,” says Mabelebele.