College tuition rates have been increasing at astronomical rates, leaving a huge gap in the education industry that has been filled, in part, by online course programs and distance learning options. Other students are opting to live at home so that they can attend local, in-state community colleges known for their lower tuition costs and comprehensive courses of study.
Now that earning an AACSB online MBA is no longer regarded as being substandard to traditional college study, students have comfortably settled into the idea of using online college as a means of saving money. Unfortunately, the education industry faces an uncertain future. The recent presidential election has left students not knowing if they can expect to pay exponentially more for tuition in coming years.
The Government’s Role in Higher Education
President-elect Donald Trump has promised to change the way that college student loans are repaid. The businessman has many concepts and ideas that might aid the economy overall, but in the interim, current and future students are waiting with baited breath. Students who have finished their online MBA programs currently have a few different options that would allow them to have their loans forgiven after a period of time. Additionally, student loan interest rates that have been fairly stable under the Obama administration could spike again, as Trump has vowed to take drastic measures in an effort to stabilize the economy.
Big Changes May Mean Higher Tuition Costs
While many students have come to realize that they probably won’t be able to look forward to receiving any federally funded breaks on tuition costs or student loan interest rates, they now have to deal with the prospect of paying even more. As Trump releases more details on his proposed plans to overhaul the college education and student loan industries, it appears that students won’t have as many protections.
Currently, privately held colleges are able to adjust tuition rates without any input from the government. Under Trump, any college receiving an endowment will have to apply the money in a manner that could lower tuition, but then colleges would just be likely to raise other fees. Costs for room and board, books or even application processing could go up as a result.
FAFSA and Student Loans
Low income college graduates are currently permitted to enter into student loan repayment terms that are based on their income. This enables poor students to continue their education by enrolling in courses of study that will allow them to earn advanced degrees despite their income limitations. While lower income earning students will still be able to enroll in online MBA programs, they will end up paying higher loan repayment amounts. Proposed changes to the US tax code are also expected to leave families with children with less discretionary income and smaller federal tax refunds, making it more difficult for parents to support college aged children.
All of the changes proposed to the education system are only ideas at this point, but if they go into effect millions of students will end up spending more to complete college. For those who are barely able to pay tuition costs now, the prospect of finishing school is bleak. Online college can be less expensive than traditional schooling, but tuition rate inflation is expected to be felt across the board.
Feature Picture Credits: Google
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Views presented in the article are those of the author and not of ED.