Instructions Conclusion and Abstract Follow the directions below for the completion of the conclusion and abstract assignment for Unit VIII. If you have questions, please email your professor for assi
11 Do you think that Income should be tied to the Cost of a Degree? Columbia Southern University September 19, 2022 Do you think income should be tied to the cost of a degree? Introduction The cost of a college education and the anticipated income after graduation is the subject of debate among students and policymakers in the popular media. Proponents of a college degree argue that degrees bring employment opportunities, such as higher income, high demand for graduates’ skills, and job stability in general. The rising cost of college education, driven by rising inflation on institution fees, is an issue gaining much attention today. On the other hand, those opposed to bachelor’s degrees argue that it raises student loans and has little weight on income gained after securing employment. Those opposed to the decision to earn a university degree claim institution rising tuition and rising inflation have rendered the degree program economically unsustainable. The national center for education statistics issued a quick fact detailing the change in the cost of education between 2010-2011 and 2020-2020. According to NCES, the cost of tuition increased by 10% for public universities, 19% for private non-profits, and 1% for private for-profit institutions. From 2010-11 to 2020-21, the average tuition fee for 2-year colleges increased by 18 percent for public universities, 9 percent for private non-profits, and 5 percent for private for-profits. Parents, students, and the media have expressed concern over the rising cost of higher education. The proponent of a bachelor’s degree argues that it is economically feasible to earn a bachelor’s based on an expectation of high income after securing employment. A medical degree is an example course in which students invest and can recoup the investment value. The proponent of a bachelor’s degree claims that a degree is essential for enhancing students’ resumes and boosting their employability and income. Opponents of bachelor’s degrees argue that investing in a bachelor’s degree does not translate to high income due to other factors that affect income, such as the demographic background of the student and the payback period for the student loan. The student expects a bachelor’s degree to be proportional to a high income after obtaining the job. However, inflation rates on tuition fees, the marketability of specific courses, and the payback period to pay student loan factors affect the income expected after securing employment. The Literature Review The controversy surrounding the cost of a degree and the expected salary after graduation is the source of contention; nevertheless, to comprehend the concerns surrounding the cost of a degree, the student loan and the school’s reputation must be considered. This review will analyze in further depth the positions of the two sides of the issue, beginning with evaluating bachelor’s degree opportunities and how they lead to high income after securing employment. The second position reviews the student debts, inflating college tuition, institution reputation, demographic background, and how these factors affect income after securing employment. A Brief on Growing Demand Bachelor’s degree According to the U.S. census bureau, the percentage of people without a bachelor’s degree increased from 2005 to 2009, whereby African Americans with a bachelor’s degree increased by 20 percent (McElrath, & Martin, 2021). According to data from the National Center for Education Statistics, the number of bachelor’s degrees awarded increased by 24 percent from 2009-2010 to 2019-2020, from around 1.6 million to almost 2 million. In 2019-20, females reported 58 percent equivalent to1.3 million bachelor’s degrees, while males reported 42 percent or 861,300 bachelor’s degrees. Increasing competition for limited opportunities and demand for qualified employees, particularly in the healthcare industry, drove the demand for bachelor’s degrees. Increasing empirical research reveals that a greater education yield, especially in post-secondary education, results in a higher individual income and contributes to the development of social capital and sustainable economic growth. According to Gulland 2019, medical students are among the students who pay the most in tuition and incur a large value of student debt. However, the loans and expenses incurred by medical students are justifiable because they anticipate earning a greater wage as medical professionals following licensures and certification. Belfied et al. (2018) show that investing in a student’s university degree yields a considerable return on investment. Not only will the students graduate with a degree, but their learning and employment rates will also increase. This assumption is reinforced by Marinic & Pecina’s (2021) study that proves the association between a high level of education and a higher income, demonstrating that earning a degree is economically viable and could enhance income. The degree is essential for making the resume appealing to potential employers, so raising the likelihood of securing a graduate-level post and earning a higher salary (Donald et al., 2018). Students continue to enroll in degree programs, expecting their student loans to be forgiven after graduation. A Brief Look at the cost of degrees Rising student loans and student fees gained much attention in 2015 when students across the United States held demonstrations indicating that student loan debts had increased to $1.2 trillion based on the U.S consumer financial protection Bureau compared to 2006 (Collins, 2021). The same year, several demonstrations were reported in London, United Kingdom, due to the government’s decision to cut government money for full-time university students, which students were not required to pay back. The maintenance grants were replaced with maintenance loans that students were expected to pay. According to the national center for educational Statistics, the cost of tuition for college and universities in 2010-11 was $8,500 for a public institution, $31,700 for private non-profit, and $18,100 for private for-profit institutions, and that value rose by 19, 10 and one percent respectively in 2020-21. Individual return on investment in higher education can be broken down into several parts, such as the cost of higher education after graduation, the length of time in school and the earning returns from a given level of schooling, and the likelihood of a certificate or degree completion (Blagg & Blom, 2018). The earning returns from a specific degree level are affected by the demographic background of the student and local economic conditions (Blagg & Blom, 2018). Investment in higher education produces a considerable economic and personal return, but for certain students, the investment may not pay off. The student and his or her family may pay for college outright or through loans that must be repaid after graduation. Approximately one-fourth of students enrolled in private non-profit institutions have a wider range of college tuition costs. The student and their family may pay for college outright or through loans that must be repaid after graduation (Blagg & Blom, 2018). Donald et al. (2018) reported that getting a degree does not guarantee a competitive edge on the job market because other issues, such as the gender pay gap and racism, impede graduates’ chances of earning a better wage. Cappelli (2020) acknowledges that many students anticipate earning a greater wage after graduation but that rising living costs and student loans affect the projected return. As a result of the market’s inflation rate, the cost of higher education has been rising, resulting in soaring student debts. Whether the money earned correlates with the cost of schooling is a matter of contention, given that student loan debt is on the rise, the cost of living continues to rise, and pay disparities to continue to exist. Students who encounter gender salary discrepancies or promotion discrimination would be unable to recoup the cost of their education under these circumstances. Despite the cost of tuition and student loan incurred, a bachelor’s degree will result in higher income after securing employment. For instance, medical professionals are highly compensated after graduation, making it easy to recover the cost of their tuition and year invested in education. Research Body Bachelor’s degrees will boost the graduate’s earning potential after securing employment. According to the National Center for Education Statistics (NCES), the median annual salary for individuals with a master’s degree or higher is approximately $65,000, which is 19 percent higher than the median annual salary for those with a bachelor’s degree, which is $54,700 (Hussar et al., 2020). According to Gulland, 2019 medical students face high tuition costs and the highest proportion of student loans. They are anticipated to earn handsomely after licensures and certification due to the unwavering need for medical services. Employers prefer applicants with a bachelor’s degree because they believe they possess job-readiness abilities, such as hard and job-related skills. Employers are ready to pay more for a bachelor’s degree, which explains why bachelor’s degree graduates have a lower unemployment rate than a high school diploma, at least 2.2% vs. 3.7% (Hussar et al., 2020). This research demonstrates that the bachelor’s degree is popular with individuals and companies willing to pay more and capitalize on the talents of bachelor’s degree graduates to increase production. Bachelor’s degree is costly and is not a strong predictor of a high salary for graduates. According to a quick fact from the NCES, the tuition fees keep rising, with public institutions reporting a 19 percent increase in tuition fees between 2010-11 and 2020-21. Furthermore, private non-profit and private institution tuition fees, according to NCES, increased by 10 percent and 1 percent, respectively, in 2010-11 and 2020-21. Blagg & Blom (2018) found that bachelor’s degree achievement is associated with a high cost of education, length of time spent in school, and earnings as a result of education, given that employability improves with institution attended and courses studied. Tuition is most expensive at the private, non-profit college. In addition, the graduate accumulates substantial student loans that may take considerable time to repay, even though he or she may eventually earn more. According to Gulland, 2019 medical students face high tuition costs and the highest proportion of student loans. The swelling debt associated with a bachelor’s degree, coupled with personal sacrifices, particularly for degrees requiring a longer time before licensures and certification, causes students to reconsider their decision to pursue a bachelor’s degree. A bachelor’s degree does not guarantee a job or a high income after graduation and getting employment. Employers acknowledge that a college degree does not guarantee that an applicant will be more qualified for the position. According to Donald et al. (2018), a bachelor’s degree does not guarantee a competitive advantage in the job market due to racism and discrimination in the workplace and the gender pay gap, which could affect a graduate’s potential earnings. Women earned 84 percent of what males earned in the United States, and it would require an additional 42 days of work in 2020 for women to earn the same as men (Barroso, & Brown, 2021). The demographics of bachelor’s degree recipients continue to impact the post-graduation earnings of each individual. On average, a black worker earned 87 cents for every dollar a white worker made, and a Hispanic worker earned 91 cents for every dollar a white worker earned (Miller, 2020). This indicates that the earnings of racial minorities and women are lower than those of the demographic majority. Nevertheless, despite the income produced by bachelor’s degree holders, the time value of money and inflation diminish the worth of their salary relative to the cost of their education. References Barroso, A., & Brown, A. (2021). The gender pay gap in the US held steady in 2020. Pew Research Center. https://www.pewresearch.org/fact-tank/2021/05/25/gender-pay-gap-facts/ Belfield, Chris, Jack Britton, Franz Buscha, Lorraine Dearden, Matt Dickson, Laura Van Der Erve, Luke Sibieta, Anna Vignoles, Ian Walker, and Yu Zhu. “The relative labor market returns to different degrees.” (2018). Blagg, K., & Blom, E. (2018). Evaluating the Return on Investment in Higher Education: An Assessment of Individual-and State-Level Returns. Urban Institute. Cappelli, P. (2020). The return on a college degree: The US experience. Oxford Review of Education, 46(1), 30–43. https://doi.org/10.1080/03054985.2019.1689939 Collins, K. R. (2021). The Ambivalence of Access: Tuition-Free Public Policy and College Access for Low-Income Students (Doctoral dissertation, University of Minnesota). Donald, W. E., Ashleigh, M. J., & Baruch, Y. (2018). Students’ perceptions of education and employability: Facilitating career transition from higher education into the labor market. Career development international. , https://doi.org/10.1108/CDI-09-2017-0171 Gulland, A. (2019). Is the medical degree good value for money? BMJ, p. 364. DOI: https://doi.org/10.1136/sbmj.j5177 Hussar, B., Zhang, J., Hein, S., Wang, K., Roberts, A., Cui, J., … & Dilig, R. (2020). The Condition of Education 2020. NCES 2020-144. National Center for Education Statistics. Marinič, P., & Pecina, P. (2021, March). Is tertiary education worth it? In Proceedings of INTED2021 Conference (Vol. 8, p. 9th). McElrath, K., & Martin, M. (2021). Bachelor’s Degree Attainment in the United States: 2005 to 2019. American Community Survey Briefs. ACSBR-009. US Census Bureau. Miller, S. (2020). Black workers still earn less than their white counterparts. Society for Human Resources Management (SHRM). Retrieved June 11, 2020. National Center for Education Statistic.(n.d). Fast Facts: Most popular majors. https://nces.ed.gov/fastfacts/display.asp?id=37 National Center for Education Statistic.(n.d). Fast Facts: Tuition costs of colleges and universities. https://nces.ed.gov/fastfacts/display.asp?id=37 Scopelliti, D. (2020). The college payoff: a look at income and wealth premiums. Monthly Lab. Rev., 143, 1.