School counselors told ‘college offers lifetime returns’

John Howell
Posted 12/4/14

School counselors from across the state were told Tuesday that parents “are mad at” colleges and look at the high cost of tuitions as “preventing my child from getting an …

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School counselors told ‘college offers lifetime returns’

Posted

School counselors from across the state were told Tuesday that parents “are mad at” colleges and look at the high cost of tuitions as “preventing my child from getting an education.”

That’s not the way it has always been, said Dr. Donald Farish, president of Roger Williams University, at a school counselors’ seminar held Tuesday at the Radisson Airport Hotel. The Rhode Island Higher Education Assistance Authority and the Rhode Island Student Loan Authority hosted the morning event.

Farish addressed the question, “Is college worth it?”

He made a strong argument that those with a college degree end up in higher-paying jobs and that studies have shown college graduates make $1.2 million more than those with simply a high school diploma in their working lifetime.

But then there’s the matter of money.

Farish said 24 of the highest-cost colleges in this country charge tuitions in excess of $60,000 a year – or close to a quarter of a million dollars for a four-year degree – and that even community colleges that were once a low-cost pathway to the first two years of college now cost in excess of $3,000 a semester.

“Parents are having a difficult time,” he said. “They all want the best for their kids, but are asking, can they afford it.”

Further frustrating parents and students, said Farish, is the lack of transparency over college costs. When parents complain about tuition, Farish said colleges frequently respond with “that’s the sticker price” and indicate that with financial aid packages, the actual cost is less.

“There’s nothing transparent about our numbers. It’s awful,” he said. “It’s like the airline prices; no one is paying the same.”

Farish suggests parents shouldn’t have to bargain over college tuitions.

“Car dealers do this for a living and they’re good at this,” he said.

Farish traced the evolution of rising tuitions, pointing out that the GI Bill was initially viewed as a mechanism to ease returning military into the workforce and that many never thought the students would amount to much.

“They succeeded beyond everyone’s expectations,” he said.

The outcome was a tremendous expansion of colleges in the 1960s and the attitude, especially with the free college system in California, that a college education was “a right.”

“There were no financial barriers to students at that point,” he said.

It didn’t last.

Citing California, Farish said there was a push to limit taxes and to incarcerate repeat offenders of the law, which resulted in a corrections system that cost more than the higher educational system.

Farish said parents are asking themselves, “Is college worth it? If I spend that will I get it back?” They are questioning whether a college education is worth the investment and treating the decision as they would to buy a house or a car.

“You can’t look at it like, do I get my money back,” he said. Rather, he said, parents and students should look at education as the means to expanding lives, enabling them to do what they love and making the money to afford it.

The question that needs to be asked is, “Are you going to have the life you want?”

As an example of how a Roger Williams student is following her passion to dance, Farish said the young woman is also working on a degree in business with the expectation that one day she will open a dance studio.

Farish said a college education “is one of the few things in life that gives a better return.” But he warned the investment could be wasted if the student fails to get a degree. Citing studies, he said students with some college experience end up with jobs that make no more money than those with a high school diploma.

He advised parents to look at the full cost of a degree when considering a college, not just the annual tuition, and he warned about over-borrowing. As a guide, the amount borrowed for a four-year institution should be no more than the first year tuition.

“You have got to be realistic about what you can afford,” he said.

Part of that assessment is understanding what jobs pay.

“Many students don’t have an idea of how much they’re going to make when they graduate,” he said.

Farish put the median salary for a new college graduate at $27,000. Too much attention is focused on that first job when viewing lifetime earnings is a better measure.

“Returns are over a lifetime,” he said.

Roger Williams has not raised tuition since 2012, and once enrolled students are guaranteed that’s the amount they will end up paying for a four-year degree. Farish said students work in teams addressing problems and issues they will encounter in jobs related to their field of study.

“They are learning what it means to work in the community,” he said.

And while colleges are being castigated for high tuitions, Farish said they are facing problems, too. He said 43 percent of institutions of higher learning missed their enrollment and budget targets in the last year. Exacerbating the problem is the volume of applications students make. He said the record for one student was 63 applications last year.

Nonetheless, Farish urged counselors to promote higher education.

“If all you have is a high school diploma, you really have a tough time,” he said.

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  • allent

    "He said 43 percent of institutions of higher learning missed their enrollment and budget targets in the last year. "

    Maybe this will help lower prices

    Tuesday, December 9, 2014 Report this