http://money.cnn.com/2013/03/12/pf/college/college-savings/index.html
This article talks about how the constantly rising tuition for college is prompting more parents and grandparents to put more money than ever into 529 college savings plans.
Average college savings grew by 12% from 2011 to 2012, and the number of 529 plans grew by 4%. In fact, the article suggests this is a very good thing that is occurring because of the rising tuition. Apparently students with college savings accounts are seven times more likely to attend college than those without one.
The built up accounts in turn allow for less students to be dependent on loans, but in the midst of all of these appearing good habits of saving and students applying for scholarships/financial aid, tuition is still constantly overpowering the efforts, making it more difficult than ever to keep up with payments. The article states, "Average tuition paid at public community colleges and four-year colleges and universities rose by 8.3% last year."
529 plans are one thing that can help the financial position of college attendies and their families, but what else can be done? Is there anything the government can do other than just improving the overall economy, soon having college tuition follow? This is another example of rising prices in the economy, but at a very accelerated pace. If college were more affordable, I think it could help the economy, giving more the opportunity for education. More human capital could possibly increase productivity.
This causes students to drop out and go into straight to labor work when they could probably do something that pays them 10 times the amount they are being payed from their hard working labor job. Money will be the issue for students because they feel like if they are in debt from all the college loans they fell like they will never be able to pay it off so the outcome of going to college by putting all that time and effort just to be in debt once you graduate is not worth it.
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