Higher Education and Education

Higher Education Problem in the United States

The tuition rate in the U.S. higher education is one of the most expensive in the world. In 2012, the average tuition ranged from $3,131 to $29,056 per annum. Some ivy league colleges charge as high as $40, 000 per annum. For example, Harvard University and Princeton University tuitions were $43,938 and $41,820 respectively in 2014/2015 academic year. Thus, students' ability to pay for the colleges have been a great concern of the communities, colleges, and universities. While large percentages of American citizens intend to pursue their college education, the college tuitions continue to increase despite an increase in the number higher educational institutions. The only option left for prospective students intending to pursue their education is to seek for a loan. To assist the students, the federal government has set aside the funds to provide loans to a student under the "Federal Student Loan Program" disbursed to students who lack the financial capacity to pay for the tuition.

The objective of this paper is to explore the problem in higher education and analyze the history in higher education.

Financial Aid Loan

The Federal student loans are the major type of financial aid packages offered to students to cover their educational expenses at a university, college, community college, trade or technical school. The federal loans are the borrowed funds that students must repay with interests. The federal loan program allows students or their parents to borrow money to fund their colleges. The federally supported loan program offers flexible interest rates benefits, repayment terms, and options.

The financial aid for the higher education started during the time the British colonized the United States, however, it was in 1639 that John Harvard left his entire library and wealth to attract students. Moreover, wealthy colonists provided philanthropic roles to assist students to pursue higher education during the colonial era. In 1643, Harvard received first endowment scholarship from Radcliffe Mowlson worth £100 to assist poor students in pursuing their education. Moreover, philanthropic scholarships spread to other higher institutions such as Princeton University, Yale, and the University of Pennsylvania. (Thelin, 2011). Harvard opened the first private lending agency for students in 1838. In the 19th and 20th century, different lending agencies sprang up across the United States to assist people to pursue their education. Between 1958 and 1970s, 158 higher institutions offered the College Scholarship Services by offering the financial aids for students. In 1980, the federal government opened the federal loan program to assist students in higher educational institutions. Since Reagan Administration, the federal government has offered loans to higher education students to assist them completing their education. (Smart, 2007).

At present, the Department of Education offers different loan programs for students. For example, the Direct Subsidized Loans is offered to an undergraduate student with no interests. Moreover, the Direct Unsubsidized Loans are offered for the eligible undergraduate and graduate students. However, borrowers are required to pay interests for the loan.

2.Discuss the issue from the perspective of a researcher and compare perspective of a non-researcher

A researcher investigating the higher education problem needs to collect both the primary and secondary data to analyze the higher education problem in the United States. The data collection technique will assist in collecting the quality data about the issue and provide solutions to the problems. While a non-researcher will conclude that the higher institutions are being greedy and increase the tuitions because of their greediness, however, the researcher will look at several factors that lead to the problems. The researcher will argue that the issue of the higher education problem arises from the increase in the costs of higher education in the United States. The major cause of an increase in the tuition is due to a reduction of the federal and state appropriations to public and state colleges forcing the colleges to transfer the costs over to students. Over the years, state supports for the universities and colleges have fallen by 26% since the 1990s. (Luzer, 2012).

By using the Bubble theory perspective, it is revealed that the returns of the American universities are increasing because American higher education is highly demanded across the globe making the universities continue increasing the cost of education year by year. (Claudia, & Lawrence, 2008). The increase in the college student loans has also been attributed to the rising of the college tuitions since many institutions believe that students will be able to afford the tuitions despite an increase tuition. While a non-researcher will not look at the law of demand and supply as one of the causes of the problem, a researcher will argue that the demand for the U.S. higher education is higher than the supply.

Determine how Existing Research Affects the Issue

The existing research provides the history of the student loans and factors that lead to the increase in the tuitions across the United States. While this study attempts to reveal the problems in the higher education in the United States, there is still a shortage of research papers about the higher education problem in the United States. Based on the shortage of research on the issue, the government has not been able to develop a policy to address the problem.

4 Discuss why this is an issue.

The increase in the tuition is an issue because it will affect the enrollment of Americans in the higher education. While the loans are available for students, nevertheless, many students may face challenges in repaying the loans if they are unable to secure employment after graduation. Moreover, the problems may make many students not be able to complete their educations and withdraw from the institution if the government has not found solutions to the problems.

5 Discuss why this issue is current

The issue is current because many people have been facing challenges in funding their education despite the availability of federal loans. Moreover, many loans offered by the federal government carry interest rates that contribute to a debt burden on students.