Higher Education Components: Is The Cost Of Higher Education Too High

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Is the Cost of Higher Education too high?
Introduction
A major aspect that dominates higher education debate today is the cost. The costs that have been increasing with time are a source of worry for students and families as they threaten their current and future living standards. With the costs increasing, families are left with little money to cover other important expenses. As for students, there is the debate of whether the benefits that come with higher education outweigh the costs. The cost of higher education is thus an issue that requires more analysis. On the surface, it is arguable that higher education helps in career preparation, personal development, civic engagement, among other benefits. However, the rising costs still remain a challenge. This paper argues that while the costs of higher education have increased, it has not reached a point where they outweigh the benefits.
Components of Higher Education Costs
Before dwelling further into other related aspects, it is significant to understand what specifically constitutes the costs of higher education. Dr. Bruce Johnstone examines the various components that make up the higher education costs. According to the author, the first category is the basic instruction costs and includes capital and locational costs, staff and faculty salaries, administrative costs, equipment, library, and basic computing costs (Johnstone). As seen, these are the basic costs without which the institution of higher education cannot carry out its basic function. As pointed out by Johnstone, these costs allow the institutions to undertake their mission of teaching and financing basic research that they are expected to do in the absence of special contracts or grants. The second category, according to the author, covers the costs associated with sponsored research. As informed by Johnstone, these costs are high and should not affect the ability of the institution to carry out its basic mission of teaching and scholarship. The costs of sponsored research, therefore, should be covered by the sponsor. In the case of cessation of the sponsored activity, the institution ought not to finance an alternative activity because the revenue would have been lost. The costs associated with student living such as entertainment, clothing, and room make up the third category. This cost varies depending on where the student lives. These are the major categories of the costs associated with higher education.
Rising Higher Education Costs
Perhaps the most significant issue in the cost of higher education is the fact that it is rising. It is interesting to note that the rise is higher than inflation. Schoen gives the example of Harvard University whose current annual tuition fees ($45,278) are 17 times higher than it was in 1971-1972. If the change in the costs of higher education in the institution had followed the rate of inflation, the current tuition fees would have been $15,189 (Schoen). As informed by Schoen, the rise of costs of higher education is about 6% higher than the rise of the inflation rate. The rise in the cost of education is compared with an inflation rate because inflation determines the supply of money in the economy. In ...