I have two sons, and I have no idea if they’ll be going to college.
Now don’t misunderstand: both of my boys are extremely bright (my admitted parental bias notwithstanding). My concerns are twofold: one is the Anti-American, Leftist agenda that I see being forced into the schools, and the other is cost.
We’ve previously addressed my first concern, with our school’s (Kindergarten through Graduate school) overarching goal apparently being the creation of one class of “Generation Cupcake” after another, so I’m going to skip that for today.
NEW YORK, Feb 26 (Reuters) – With rising U.S. college costs and too many options, parents are saving less than they expected for their children’s higher education.
American families are failing to reach their educational goals as short-term budget needs and emergency savings take priority in the household budget, according to “How America Saves for College,” a closely watched study released Tuesday from the education lender Sallie Mae.
Families said they are relying on federal and private student loans to fund college costs, according to the study, which polled 1,600 households in August 2012.
Families currently saving for college expect to sock away an average $38,953 by the time their child is ready to enter school. But according to their savings behavior, families will probably only save an estimated $19,784, about half of their goal, according to Sallie Mae. (Sallie Mae estimates the cost of private four-year college to be $203,114 five years from now.)
The annual estimated cost of tuition, room and board for college jumped by 84 percent at four-year public institutions between 2000 and 2010, to $15,918. Costs for private institutions rose 49 percent to $32,617 during the same period, according to the National Center for Education Statistics.
Even so, personal savings have declined in the years following the recession, dropping to 3.7 percent in the third quarter of 2012 from 5.1 percent in 2010, according to the Bureau of Economic Analysis. This means that the large number of families – 68 percent – who consider higher education to be a valuable investment for their kids are relying on reduced savings to put their children through school.
We’re digging ourselves into a Grand Canyon-sized hole. Individually and as a group, we’re saddling ourselves with more debt, every day, to the point that even some fairly basic degrees are resulting in kids leaving school with $50,000 to $100,000 in debt after graduation, …or more.
Why? Is higher education so much better nowadays that it is worth the incredible cost? Hardly. No, the reason is far more insidious, and far more obvious.
Please give yourself just under 5 minutes and let the folks at Encounter Books explain the real reason college costs have exploded, and turned this aspect of the American Dream into a living, breathing American Nightmare.