Balancing my personal budget, while taking into consideration my tuition, fees and living expenses, is a painful process most of the time, and this is probably the case for most N.C. State students as well. So when I read a couple of articles on European higher education recently, I could not help but to have a twinge of jealousy at the relatively well-off situation the students in the European Union are in.
An education is considered a right in the EU, so higher education is highly subsidized or practically free. From a student’s perspective, this arrangement has many advantages over the U.S.’s approach to education. They do not need to worry about where their next semesters tuition is coming from, nor do they have to spend a good part of their lives repaying student loans.
This arrangement also results in higher taxes for the taxpayer, and at a time of nationwide economic woe like the one the EU and the U.S. is in, it could lead to a cut in state funding for the universities. The EU is starting to realize the merits of the U.S. system. The situation in Britain right now is starting to make them ask the graduates to pay for their education. Worldwide university rankings also show that universities where education is highly subsidized fail to gain a top spot, despite having a great reputation in their own respective countries.
Though access is provided to everyone in the U.S., higher education is treated as a service as opposed to a fundamental right. Public universities are still supported by their respective states, but a higher portion of a U.S. university’s budget comes from students. For example, at N.C. State for the year 2010 to 2011, 18 percent of the revenue budget comes from tuition and fees, while 42 percent comes from state appropriations. While this leads to lesser burden on taxpayers and helps universities survive times when public funds are scaled back, students have to pick up a good part of the growing tab for their own education. Financial aid is not available to everyone, and even if the student manages to graduate successfully with the help of loans, economic activity is slow as new graduates attempt to pay off their student loans.
To help students pay for college — thus making the U.S. more stable and competitive — more incentives should be given to financial institutions to provide interest-free or low-interest rate loans to students.
Tying the loans to successful completion of the degree would be an additional motivation for students themselves to not drop out. An interest rate structure based on the earnings of a new graduate would be a realistic means for financial organizations to still make money without placing too much burden on the new graduates.
Encouraging increased collaboration with the industry in whichever fields possible could also help raise money for universities and the research departments in the U.S., thereby decreasing students’ financial burden and balance university and state budgets.
Global competition is at an all-time high, and it is urgent that we realize education is our prime tool in remaining competitive in the global market. It is essential for any country aspiring to be a global leaders to ensure that its future generations have the means to education. The U.S. should never second-guess their position to maintain educational dominance.
