15 Surprising Side Effects of Rising College Costs

November 13, 2011

It’s hard to miss talk about rising college costs these days. It’s plastered all over newspapers and websites, and has been at the center of much political debate over the past month, especially in response to President Obama announcing a new plan to help grads better cope with student debt. And it’s not a discussion that’s likely to go away soon. Over the past few decades, college tuition has been rising at a breakneck pace, almost three times as fast as inflation. Incomes haven’t kept up with college costs, and that’s made it a challenge for many students to pay their way through school, often accruing tens of thousands of dollars of debt in the process.

The effect these rising costs have had on young adults hasn’t always been predictable, however. Here, we explain some of the more surprising ways higher tuition is affecting the way current students and recent grads work, play, and live.

1. Enrollment in two-year colleges has risen.
   Rising college costs haven’t necessarily driven students away from pursuing a degree, but many are chasing that goal in a new ways. Community colleges have seen a steady increase in enrollment as economic troubles and sky-high tuition fees have put traditional schools out of many students’ reach. Two-year colleges are often much cheaper and offer students more flexibility in working while they attend classes. For some, they’re a great way to get basic courses out of the way before moving on to a bigger, more prestigious school. Whatever the reason, community colleges are playing an increasingly large role in higher education, a fact highlighted by President Obama in a 2010 speech on education and an accordant $12 billion dollar program to fund two-year schools.
   
   2. Fewer young people are able to afford to buy a home.When you’re carrying tens of thousands of dollars in school debt, saving up the money to buy a home often just isn’t a possibility. As tuition rises and students are forced to take out bigger loans to pay for school, fewer young people are able to fulfill the long-standing American dream of home ownership. Only 57% of people between 25 and 44 own a home today, a 4% decrease since 1980. While overall ownership has increased, young people are increasingly unable to purchase a home, and the current economic crisis and the income uncertainty it brings haven’t helped matters. Add to that the nearly $30,000 in debt many college grads carry and you have a recipe for an extended period of renting.

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