Student debt saddles you for life. This would let you know what you’re getting into | Opinion

Is the cost of college still worth the price?

According to the Education Data Initiative, the average student loan debt in the United States currently totals $37,338. The average student borrows more than $30,000 to pursue a bachelor’s degree. And more than 45 million Americans have student loan debt.

High school students considering whether it is worth it to pursue a college degree usually consider two major questions: How much debt will I incur, and how much will I make in that career? Unfortunately, it can be difficult to easily find the answers, which can result in taking out large college loans for careers that might not provide the adequate salary to pay the loans.

Many colleges and universities have been criticized for offering classes and degrees that give students little in the way of career benefit.

A recent survey by the Wall Street Journal found that 56% of Americans believe a four-year college degree isn’t worth the cost. Depending on the career, they may be right. Attendance at universities throughout the region and nation shows sharp declines.

From 1963 to 2021, cost of a four-year college rose 165%. Increases can be found in both public institutions, where the average is now $19,374, and private, where students can now pay $45,920. Interestingly, private, for-profit colleges have been successful in lowering their costs, from a peak of $31,709 in 2004, to $27,470 today.

It is not a given that the cost must increase. Purdue University for example has kept its tuition frozen for 13 years — at less than $10,000 a year. Former Indiana Governor Mitch Daniels — who became president of Purdue — says it has been a top priority to stay affordable for families. As a result, student loan borrowing at Purdue has decreased by 40% since 2012.

Daniels says the key has been an effort to manage expenses, and asking alumni for more contributions. But as Purdue has kept tuition frozen, student enrollment has increased, allowing the university to more easily balance its books.

While we are hopeful that other higher education officials can learn from the Purdue example by adopting policies that make tuition more affordable, policymakers can also help provide data that informs a student’s decision on which colleges to attend and degrees to pursue. One option to make the decision easier is a concept Mountain States Policy Center is calling a Career Transparency Act or CTA.

The CTA would require the state to make a variety of statistics and information publicly available to high school students considering a college path. The information would includd a listing of the state’s future workforce needs:

• Starting wage information and education requirements for the top 25 high-demand jobs in the state;
• A listing of the 40 baccalaureate programs with the highest average annual wages following graduation;
• A listing of the 20 associate programs with the highest average annual wages following graduation;
• The cost of obtaining the degree or certificate at state institutions of higher education, including: Tuition and fees, room and board, books and supplies, transportation and other costs.
• The median wage earned by students;
• The median student debt of those who graduated;
• Progress on repaying student loans;
• Percentage of students who withdraw and do not enroll at another school.

With this information readily available, students could better understand whether the long-term career benefit would be worth such a large financial burden.

Policymakers may not be able to control all college costs, but they can help inform better career and financial decisions by students considering higher ed. Identifying workforce needs, a listing of wages, clear information about the cost of a degree, and more should all be made readily available via a Career Transparency Act.

This story was originally published February 25, 2024 at 3:00 AM with the headline "Student debt saddles you for life. This would let you know what you’re getting into | Opinion."