IIM KOLKATA

The state of education today levies a hefty price tag which necessitates forethought and upkeep

Education, Recent

The fundamental nature of knowledge is absolutely unequivocal. Promising a wide range of benefits, the state of education today is overarching but undoubtedly costs a fortune.  The inflation in the education industry concerns the academic choices of an individual to a great extent. According to an expert, the cost of college has made the possession of a degree less beneficial than it was 10 years ago. Although education builds a strong financial future for the children and help build better citizens with strong intellectual rigor, the financial requirements can be intimidating.

Further looking at the contributors to the increase in estimated costs and expenses, we stumble upon the following:

  1. Artificially Inflated Demand

Increased prices for acquiring education have been led by artificially inflated demand and non-adjustment of supply simultaneously. With the onset of inflation, tuition fees increased exponentially to match the economic situation. Lack of government’s contribution in terms of subsidization sources or grants, made colleges turned towards families to render teaching expenses.

  1. Sticker Shock

Sticker price is the total amount of college fees a student pays annually not including the grants, education tax benefits and other forms of financial assistance. The cost hikes of the educational institutions is a major deterrent for those lacking significant family contributions or savings.

  1. Faculty salaries

Overpriced professors and training staff also serve as a driving factor in the overall increase of school expenses. By augmenting their existing administration and providing them big salaries, the price for getting into an institution is burdening the aspirants and their families. The main cost driving factor for these universities is the hiring oversized salary seeking teachers.

  1. Student services are swelling

Services such a student counselling, healthcare, career guidance, academic support have risen greatly. These extensions are seen as imperative for an individual’s overall development in modern education system, which is why non-teaching administrative staff have been added on the campus. Seen as a massive support for the children, these benefits are offered which further adds to the institutional charges. Once made available, the impulse to not withdraw from providing these additional resources increases in the faculty.

Adversities brought by the increase in educational expenses:

Transformative prospects for a national has been risked with increase in fees charged. With limited financial resources and multiplicity of goals of the students, it is challenging to pursue a desired career path.

Higher debt levels have pressurized both families and kids and repayment is proving to be exigent. Gulping an enormous part of the overall budgets of the families, education is taking a large chunk of their retirement savings as well.

Inflating levels of student debt also forces them to return home after completion of their studies or even opting to not leave the nest in the first place, which is an absolute essential step for their transition into adulthood. Lack of self-sufficiency causes an increase in boomeranging, i.e, returning to their parent’s home.

Education serves as a paramount in one’s success, innovation, improvement and economic, social and cultural prosperity. However, with the state of education today, achieving its fulfillment is an issue requiring immediate and prompt focus at governmental as well as individual level. Availability and relevance of education equals its accessibility, and it empowers an individual to promote from point A to point B in their career paths. Despite the practice of various schools ardent sales techniques which have filled the marketplace with high costing alternatives to universities and institutions of learning, universities have an increased amount of external encumbrance to minimize costs and control tuition expenses, more so than in the past than 20 to 30 years.

 

 

 

 

 

 

 

Last modified: November 13, 2018

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