You Can’t Put a Price on Education - Or Can You?

It doesn't come as a shock that households supporting a student getting a college education spend a significant percentage of income on tuition.  And there's no doubt that tuition has been consistently rising. However, it has become questionable whether students are truly getting the bang for their buck. 

A new study has exposed that the cost of tuition exceeds the amount of money that is used per individual student.

This study, which was conducted by the Center for College Affordability and Productivity, determined that a majority of students overpay, especially those attending private universities.  The same study even refers to findings that 59 to 87 percent of students attending four-year universities are overpaying. For every two college students, one is overpaying for their education.

According to The Center for College Affordability and Productivity, many schools receive more money to offer the education than they spend on the education itself. It is questionable whether the student's money is spent properly by these institutions.

But the number on the tuition bill is not the only price that students and parents must pay. Typically, books, transportation, food, lab fees, printing, copying, laundry and campus events are not covered by tuition. These necessities are even aside from shopping, drinking and weekend activities that also cost a pretty penny.

In 2009, the National Association of Independent Colleges and Universities was proud to declare the average tuition increase was "the smallest in 37 years" at just 4.3 percent for private universities.

To put this into perspective, a $20,000 tuition would rise to $20,860. This may not seem like much compared to the original cost, but it's dipping even further into students' bank accounts and paving the way for future increases.

But, most importantly, is this money well spent?

According to the 2005 U.S. Census Bureau, the average income for those without a high school diploma or GED was $18,734 annually and $27, 915 for those with a high school diploma or GED. Compared to college graduates, whose earnings averaged at $51,000, the advantages are clear.

After the national student loan debt reached $830 billion in June 2010, the price of education cannot easily be ignored, but there are ways to ease the costs before applying to universities.

Community college is a cheaper alternative where students can determine a preferred area of study and take a number of classes before applying to more expensive schools.

While in high school, students can take Advanced Placement (AP) courses and participate in the College Level Examination Program (CLEP), both of which offer college credit courses and if the student does well on these exams, it can cut down the costs for prerequisite courses at the undergraduate level.  High school students can also explore the Dual Enrollment programs, which allow them to take courses at local community colleges for high school and college credit.

Although the cost of tuition can seem ridiculous, it's clear that a higher education is better than little or no education. Students and families who have difficulty paying tuition should explore options ahead of time to ease the strain.

To read about more ways to reduce the costs of college, visit centerforcollegeaffordability.org.