The Cost of College in 4 Minutes
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The Cost of College in 4 Minutes

I’m a lucky guy. I didn’t do so well in high school and didn’t
meet the requirements to go to university right off the bat. Instead, I went to Community College, lived
at home, worked a part time job, and saved a sh*t load of money. Afterwards I went to a public University and
saved even more money. I graduated during a huge recession without
debt thanks to my privileged circumstances which allowed me to think less about the money
I’d earn after college and more about my interests. That being said, tuition to even state Universities
has increased dramatically since I graduated – making the once realistic American dream
seem a distant memory for many of us youngsters. Hello everyone. Today we’re going to explore the topic of
why in recent years college has become so expensive. Just how expensive is college? The website states that one
year at a public University will cost on average roughly $25,000 while at a private University
it will cost $50,000. This hasn’t always been the case. From 1984 to 2014 tuition for public universities
has increased 225%. And to make matters more daunting, only 19%
of students actually graduate at a “4” year university within 4 years – making
the majority graduating within 5 or 6 years. And while tuition goes up and it takes longer
for students to graduate, on average it takes longer for college grads to earn back what
they’ve spent on tuition which on average is at 36 years old. Moreover college grads has been earning less
and less over the past 10 years while the cost of college is skyrocketing. But why? High education is just like a business. In fact some say that the U.S. Department
of Education makes $15 billion dollars in profit from student loans every year. If students stopped taking out loans and going
to college, our economy might just collapse. Universities want to attract students, just
like businesses want to attract customers. To do this need to hire the best professors
who can conduct research in the most up to date and technologically advanced labs. This is not cheap. The average salary for a professor is $100,000. A lab? Probably a lot more expensive than that. Universities also need to have beautifully
built campuses. Again not cheap. Not only do the buildings need to be architecturally
aesthetic, but the grounds need to be taken care of and the buildings maintained. Universities also must have attractive amenities
like career services, health centers, and even psychiatric availability. All of this costs a sh*t load of money and
creates a load of competition between the universities. Consider it like an arms race education style. But that’s not all. In order to pay for such expenses, universities
create high tuition and use financial aid to help those who can’t afford it on their
own and take as much as possible to those that can afford it. This is called the Bennett Hypothesis – our
government provides loans and financial aid to students, and colleges get their money
whether it’s from students who take out loans, get financial aid, or can pay for it
out of pocket. If schools know that students have more money
to spend, they can raise tuition, and make their campuses more attractive to potential
students, which causes more competition between schools. So when the government is providing subsidies
for its citizens to go to college –there is more demand for education now that more
and more people can afford to go to college – and this in turn encourages colleges to
charge more for education and they can increase their marketability by spending that money
on professors, campus beautification or improved amenities. The real question however is – is college
worth it? That I cannot answer. But I will say that going to college has made
me widen my perspective and allowed me to pursue ideas that I probably wouldn’t have
if I had not gone. College is about your education and an investment
that will last you a lifetime. The only answer I can give you is to think
about what you are passionate about and do it. If you don’t need a college degree to pursue
your passion, don’t go. But if you think college will enrich your
life and help you obtain mastery in your passion, then go.

About James Carlton

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62 thoughts on “The Cost of College in 4 Minutes

  1. I wouldn't have found my passion if I didn't go to college. College, for me, was about having an identity crisis and fervently searching for something to invest my life in. The family and community I grew with did not give me those tools. This is also the case for a lot of my friends at my school.

  2. Beyond just the price of tuition there is also the opportunity cost of losing 4-6 years. Having just finished the college experience I really think that college is not a good place to figure out what you want. You will get much more benefit if you go in with a plan. You have to decide if its worth the tuition + time to advance your career beyond what you could accomplish in a trade school or working a job.

  3. nice vid. The concept would be even worse if there was free college because the government would pay for all of it and no one would care about the price which would in turn skyrocket tuition. The same concept is in healthcare and anything that the left deems a "right".

  4. You overlooked the cost of administrators. There are nearly as many administrators as faculty at most modern college, the cost of these bureaucrats is where the cost comes from today.. Look back 30 years and admins were only 1/5 of the number of faculty. The regulation boom helped cause the rise of college costs.

  5. tl:dr It's expensive because the government is subsidizing it. Like you said, it's a business so when you subsidize something, you artificially increase demand. When you increase demand, you increase price. Simple version. Oh, and since it's subsidized, it becomes more worthless.

  6. meanwhile, back here in Europe, i'm facing at 4 years in a very respected university, at no more than 3600 dollars per year…

  7. College is completely worthless unless you need a certificate or license for that job. Not only does it kill creativity it also waste a good majority of your youth just to teach you a bunch of trash and trivial questions that you can google in less than 5 seconds.

  8. For emergency Loan ? If you Have any financial crunch ,As I got loan Amount $10000 , It Was Helped me in medical bill

  9. WRONG! the cost of college has prematurely, rapidly risen ever since the government began giving anyone who would apply the same big pot of money starting in the early 90's. Colleges then began pricing tuition according to the amount of loan money available to applicants,, not according to what college actually costs. Professors have always been paid very well, even when my parents went to college for free in the 60's. the loan system is a scam.

  10. Meanwhile in Belgium: ~1000 dollars a year at an internationally respected university.
    47th in the world university ranking, and the most innovative university in Europe for the third year in a row.
    Happy not to be born in America.

  11. 2:02 only 100k for the Professor, come on without him there would be no Powerpuff Girls and Townsville would be screwed. The man deserves more for what he has done.

  12. The value of college depends on what degree you get and how useful that would be in the real world. Take a STEM degree and compare it to a gender studies degree. There are tons of options if you have a STEM degree, but what is gender studies going to get you? Probably just laughed at when you think thats going to get you a good job.

  13. In america the reason why the cost is high is due to government subsidization. Rich people have the money regardless, the government pays for the "poor", and the middle class gets to compete with the government's deep pockets. Yikes!

    Although in the end it might just be better to skip a traditional college and go to a trade school.

  14. I for not a single moment ever EVER gave a two shit flying f*** on the appearance of colleges! I worried about saving money and taking many helpful classes from a community college and now on my last year of getting my bachelors and getting certification of geographic Information System and make my resume look good! Im more worried about what opportunities i can get after I graduate and never cared for appearance! Im glad i did my math!

  15. Colleges dont give a fuck. They hear you bitching but youre still paying and when you graduate, you no longer bitch. The only way to make them suffer is by not going to college but there is not enough students to make this happen and there will never be.

  16. The thing is the federal student loan services were privatized which meant a lot of banks began to have a stake and make the system more lucrative.

  17. College shouldn’t be free but it should be a fuck ton cheaper than what it is like in the 70s and 80s come to think of it other aspects were better back than especially college sports which are basically minor leagues now I also believe in universal healthcare system or single payer

  18. I got an A.S. degree for $6,000, B.S. degree for $6,000, M.S. degree for $3,000 – not in liberal bullshit, but in IT engineering and I make PHAT cash… liberals would be better staying high on oxicontin for 6 years because they will end up just as smart….

  19. Great video. Wall Street just loves student loans because they are guaranteed and you can't get rid of them through bankruptcy. Student loans are the most dangerous loan out there!

  20. pro tip:

    FR year HS:
    – decide upon a career path (not necessarily a specific job) make sure the career path that you choose pays enough in general to afford that standard of living that you want to have
    – pay attention to your hobbies skills and talents . If you don't have any now is the time to learn.
    – join 2 clubs/sports that you will be in for the rest of HS. whatever you pick, you cannot quit. (your goal is to be in a leadership position in those clubs by jr. year)
    – take ALL AP classes! even if you were not in gifted classes in middle school. it sounds harder than it actually is. it may be difficult getting into those classes but work hard and be an advocate for your own education

    Sophomore year HS:
    – pick 3 jobs that you like in the same industry and research it further
    – research colleges with degrees that lead to that job that you may want to apply for. make sure they accept AP credits, Dual Enrollment and CLEP exams
    – take majority AP classes if you can! even if you were not in AP classes freshman year school. it sounds harder than it actually is

    Jr year HS:
    – take a combination of AP classes and Dual Enrollment at a community or state college
    – get a job in the field you would like to work in (ex if you are interested in health care, get an part time afternoon job doing clerical work at a local hospital or clinic during the school year and pick up more hours during the summer)

    SR year:
    – apply to net colleges early and your general/reach schools during general admission
    – take a combination of AP classes and Dual Enrollment
    – get letters of recommendation from trusted instructors and admin. staff
    – receive your HS diploma
    – apply for scholarships and grants

    summer after HS graduation:
    – Create a free account with Modern States take at least 4 classes then take the CLEP Exam. If you pass will enter college already having completed freshman year and save thousands without much effort.
    – If you are going to college locally, ask management at your job (theoretically) if they would consider you for an internship during or after college. if you have been doing well at the company or organization, now is around the time you should be expecting a small pay increase.
    – If you are doing college abroad, ask if they have any connections to people in the industry where you are going that could possibly help secure a job or if they have any good advice for advancing in the field. If it is a large company you may be able to transfer locations. also ask if they can write you a letter of recommendation for college and / or work.

    Fr – Jr. year college:
    – go to college and try not to mess it up. check out Rate My Professor before registering for any class and SlugBooks before buying/ renting any textbooks
    – maintain a good GPA even if it means taking a few less difficult classes
    – join at least 2 clubs/ organizations ( at least one should be related to your previous clubs / activities in HS and the other should be related to your future field or career ) if there is no club / chapter- make one
    – establish yourself in 2 non profit organization through volunteer work
    – get involved in your community / government. go to city, town, and state meetings and join a citizens coalition of academy if your county or city has one.
    – choose these clubs and activities wisely as not to overload your schedule and make sure you dont have too much going on on a daily basis.
    – this is the stressful part so take care of your physical and mental health

    SR year in college – apply for an AmeriCorps program that interests you. Its better than an unpaid internship in many ways and it is less competitive. This will help you start to pay off your JR and SR year of college if you did not receive enough scholarships and grants to completely cover the costs. It will also add work experience to your resume and give you an opportunity to get familiar in your field while building your social network. This also gives you an opportunity to travel with almost all expenses paid and have a positive impact on a community while guaranteeing you have something to do upon graduation

  21. Did he really just call himself privileged for not having the grades to get into college straight out of high school 🤔

  22. College tuition should be free in United States as it is in many European Nations, but instead the Trump administration is proposing to end student aid.  The students in North American schools don't know because they are busy looking for the new smart phone, or going to weekend parties.  It's about time the students wake up and take to the streets to protest for what is right, free tuition.  There is plenty you can do peacefully.

  23. I got my first degree in the early 80s… It sure didn't cost as much as it does now… I got my second degree in the early 00's and my company paid for most of it as a severance package because I had worked for them for nearly 20 years, and still it didn't cost as much as it would now, nor did I have to take a shitload of non-major related "required" classes just to make someone else's wallet happy! I have always been an advocate of higher education, but when college admissions and educational/curriculum planning have all the charm of high-end auto dealerships, thus putting you behind the wheel of something you can't even take out of the driveway, I have to really start questioning the entire system…

  24. U have to know that BAD trend where in order to get a simple, regular job in business people will have to have got “some” college education. This is completely silly. For most of the jibs available just high school education would be perfectly sufficient. There is maybe a couple of professions where higher education is definitely required but for the rest it’s just a waste of money.

  25. Yes my stupidity was a blessing in disguise. So far I’m 18 years old and just got done with my first year in community college using my pell grant and phea grant to pay. I have no debt and have a 3.00 gpa, it’s not the best but I’m sure I will improve next year.

  26. Free full ride even for internationals..
    Try to live in Kalamazoo city, Michigan. In that city all high school kids can go to any public or private college or research university, 100%? Free. It was even featured in Wall Street journal a few weeks ago …all covered. It’s called the Kalamazoo promise

    A recent "Wall Street Journal" article

    A city discovered a fix right here in the USA–Kalamazoo city Michigan is the first to provide a free college education in America for all its residents. If you want to go to a private university they still cover up to 100%. You can even go to University of Michigan or Western Michigan University (public universities). Possible to have it all covered. Even former president Obama mentioned it in his speeches. Many states are trying to replicate..It is called “Kalamazoo Promise” program and even foreigners may qualify.

    This is not to any surprise since Kalamazoo city was the first in the nation to provide a free education for all residents from K-12 long before other cities and state made it common. No wonder so many famous inventors and individuals come out of this little innovative community.

  27. University presidents and coaches makes 500k-2mil a year as well. Their job is to raise money for the college by attracting students on student loans… crazy system we got guys.

  28. You also missed the point about how governments have consistently cut funding to public schools every time there is a recession. It is no coincidence that tuition has skyrocketed since 2008, as huge cuts resulted in the transferring of cost burden to students. Back in the days after the GI bill, there wasn't soo much hysteria about tax revenue going to public colleges. The schools were soo highly funded through taxes that the state could essentially set the terms of tuition, meaning that many schools where either extremely cheap or free. As the government spending cuts went down, so did the states ability to dictate price, and the schools had to make up the lost profits in some way, raising the tuition rates nationally.

    We are at a point now where tuition is soo high that it's insulting to think that tax payer money is being used to fund these schools. We either Need to get the state completely out of university education and pray that costs eventually go down (99 percent sure they never will), or increase government funding back to were it was in the GI bill days so that, at the very least, schools are accountable to the state before they can make decisions that will increase tuition unsustainably.

  29. It is itlnteresting that you left out the incomes of presidents and coaches. Yes a college professor making 100K/year (which is crazy because mine made around 40k) is high but that is nothing compared to the multimillionaire presidents and coaches.

  30. If you play it smart go to community college first and set up a budget. If you work your ass off and make some money you can graduate college debt free.

  31. Its is an absolute scam!… No one ever talks about the Billions of Dollars of tax money that goes to fund these Universities. Need to stop funding this crap. You want it, you pay for it!

  32. The amount of tax money that goes to fund these schools, college should already be free. The cost keep going up and up!..

  33. Wow it is so high school tuition costs over $50000 a year.. I don’t understand why people are getting a job to go to college..just study hard and get a financial aid

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