Higher education in the United States is getting costly every year. The total cost for a college education amounts to over $21,000, while education at private schools costs nearly $33,000. The household net worth fell to 40 percent between 2007 and 2010, with average household income amounting only $50,000. The federal government provides different forms of grants, subsidized loans, and other kinds of assistance to ensure success in life through higher education. Nevertheless, the rate for higher education still leaves students finding ways to pay for their education.
Parents play a major role in their children’s education. According to surveys, parents pay 50 percent for their children’s college education. As their income increases, the more percentage they have to pay for the education. Parents with low income, on the other hand, only pay for 20 percent of their children’s college tuition.
Key players in college financing are state and federal governments, as these allocate budget to state schools. The U.S. Department of Education will provide an estimate of $180 billion in direct aid and tax benefits for this year. A controversy centers the government’s role in financing higher education. Some report that government subsidy prompted academic institutions to increase their tuition fees. It was also noted that government subsidy only benefits a small portion of the student population.
Some students also contribute for their own education. They obtain student loans or work part-time jobs to cover for study expenses.