Understanding the Rising Costs of Higher Education

College, professional, and graduate schools currently cost more than ever. However, without them, you stand to lose more than ever. One common take on the situation blames institutions of higher learning for effectively price gouging the American people. This, however, isn’t the case. Higher education is more valuable than ever, and government aid that once came as grants have transitioned to student loans. face it, if you’re going to have the best university system in the world, someone’s going to have to pay for it. Let’s look at the past, present, and future of rising education costs, and how they affect you

More Students, More Money

First, let’s put rising tuition and fee costs into perspective. The cost of higher education has surged more than 538% since 1985. In comparison, medical costs have jumped more than 286% while the consumer price index has jumped 121%. Meaning higher education is almost 4.5 times as expensive as it was 30 years ago.

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In current dollars, the change is even more evident, with the average cost for all institutions in 1981-82 at $3,489, with a price tag of $19,339 in 2011-2012. For 4-year institutions, the increase over the same time-frame extended from $3,951 to $23,066. Meanwhile, 2-year institutions (that are still many of the most economical higher education options) increased in price from $2,476 to $9,308. As seen below, this isn’t a new trend, with yearly increases in college tuition and fees often doubling to quadrupling price increases for other goods, every year.

Tuition Kings understands that the cost of higher education is simply out of control and unaffordable. For the students that are not able to receive grants, scholarships, or financial aid the dream of continuing your education sometimes feels like a nightmare.

Not to worry, as a member of Tuition Kings you will have access to 3 different accounts that will allow you to grow your nest egg and pay off your student loans at a faster rate.

3-Year account – Minimum deposit of $100.00 and a maximum deposit of $2,500 per month.
1st year APR 8% / 2nd year APR 11% / 3rd year APR 14%. Principal and interest paid out at the end of the 3rd year.

4-Year account – Minimum deposit of $100.00 and a maximum deposit of $2,500 per month.
1st year APR 8% / 2nd year APR 11% / 3rd year APR 14% / 4th year APR 17%. Principal and interest paid out at the end of the 4th year.

5-Year account - Minimum deposit of $100.00 and a maximum deposit of $2,500 per month.
1st year APR 8% / 2nd year APR 11% / 3rd year APR 14% / 4th year APR 17% / 5th year

APR 20%. Principal and interest paid out at the end of the 5th year.

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