WITH unemployment rising, house sales falling and retirement accounts shrivelling, college students are not at the top of most people’s worry lists. But they face a miserable set of financial circumstances. Tuition costs and other fees are soaring: up 439% since the early 1980s, says a recent report from the National Centre for Public Policy and Higher Education. Family incomes have not begun to keep pace. This year’s average bill from a private college is about $25,000, according to the College Board, a body that, as well as managing standardised tests such as the SAT, also studies financial aid for students. Public universities are far more affordable, with an average price tag of $6,500 for in-state tuition. But that is still a big chunk of the budget for a poor or middle-class family. And living expenses quickly run up the tab, even if a student makes do with a grotty apartment and lives on noodles.
The unsurprising result is that more students are borrowing to finance their education. According to the College Board, student debt has ballooned from $41 billion ten years ago (in 2007 dollars) to $87 billion today. Nearly two-thirds of those who graduate from a four-year programme, public or private, are in debt. Last year a borrower’s average burden, according to the Project on Student Debt, was slightly more than $20,000.