The difference between the average earnings of people with a bachelor's degree and those with a high school diploma.

College Wealth Premium:

The difference in net worth between families headed by someone with a college degree and those without.

Paradox:

A statement or situation with contradictory qualities, or opposed to common sense but possibly true.

Stratified:

The society is divided into levels or classes based on social status, education, or income.

Realignment:

The action of changing or restoring something to a different or former position or state.

The perceived value of a college degree in the U.S. has declined over time. In the past, higher education was widely considered essential, with 74% of Americans viewing it as “very important.” However, that figure has dropped to 41% in recent years.

The economic benefits and financial returns have also diminished. Before 1980, white college graduates accumulated significantly more wealth than their non-graduate peers. However, if we consider the College Wealth Premium, which takes into account the cost paid for higher education, the advantage becomes weaker. For those born in 1980 and beyond, the wealth gap between college graduates and non-graduates has narrowed. Among all racial groups, the financial advantage of obtaining a college degree has steadily declined, approaching near zero in recent decades.

Rising Cost and Financial Burden on Higher Education:

As tuition costs have risen dramatically, the financial burden has shifted increasingly to students. The economic value of a college degree has become greater than the wage benefits, as many graduates are left with substantial debt, limiting their ability to build wealth, such as purchasing assets or starting businesses.

The tuition was more manageable in the past. However, since 1992, the cost of attending a private college has surged to approximately $58,000 per year. In 2007, total student loan debt in the U.S. stood at $500 billion; today, it has skyrocketed to $1.6 trillion, which means the student loan debt has increased by 2.2 times since 2007. The increased costs have made student debt a major economic issue.

As Tough has pointed out, "When you do take cost and debt into account, the financial benefits of college begin to look quite different"(8). The quote highlights a shifting perception of the value of higher education. While a college degree was once seen as a clear financial advantage, rising tuition costs and financial burdens have made its benefits less certain. When comparing the total costs of higher education to the total income it generates, the financial advantages appear to diminish.

A growing number of Republicans, from 37% to 58%, believe that colleges and universities have a negative impact on the country. This shift in perspective has been accompanied by a dramatic decrease in the confidence in higher education, from 56% to 19%. Additionally, 79% of Republicans feel that professors will bring their political and social views into the classroom, while only 17% of Democrats share this concern.

Research has shown that the dominance of liberal and left-leaning ideologies on college campuses has become increasingly evident, with liberals now outnumbering conservatives by approximately 12 to 1. This trend has raised concerns about the openness of higher education to Republican or right-wing students and faculty.

In countries such as the United Kingdom, undergraduate enrollment has increased by 12%, while in Canada, 67% of adults have obtained a college degree. Similarly, adults in nations like Japan, South Korea, and the Netherlands continue to emphasize the demand for higher education. Meanwhile, the percentage of U.S. residents who consider higher education very important has declined from 74% to 41%.

Main Reason - Tuition fee:

One of the key reasons for the difference lies in the tuition fee of Higher Education. In Canada and Japan, annual tuition averages around $5,000, while in Italy and Spain, it is approximately $2,000. Meanwhile, the tuition fee of universities in France and Germany was nearly zero. In contrast, the cost of attending college in the U.S. has become a significant financial burden and as become a significant financial burden and has continued to worsen over the past decade.

Risk:

• Risk on Graduation:

  Approximately 40% of students do not complete their degrees, meaning they invest time and money without earning a credential. For those who take out loans for higher education but fail to graduate, it becomes the worst-case scenario in this college gamble.

• Risk on Tuition Costs:

  If college were tuition-free, students would have a 96% likelihood of benefiting from their education. However, for those attending private colleges with high tuition fees, the probability of receiving a positive and considerable return is closer to.

• Risk on the Choice of Major:

  Nowadays, the choice of major has a significant impact on financial returns. Business and STEM graduates have a 75% chance of financial success after graduation, while those majoring in arts, humanities, and other fields face a higher likelihood of losing in this gamble.

Higher Education Stratified by Income:

Private colleges have increasingly focused on attracting affluent students. An elite degree is now an expensive ticket to entry into the well-paid job market, with children from wealthier families being twice as likely to gain admission to top-tier colleges(Ivy-plus colleges) compared to middle-class students. As a result, students from affluent families are more likely to ensure that the costs of their education are worth the investment.

According to Tough, "For the nation’s more affluent families (and their children), the rules of the higher education game are clear, and the benefits are almost always worth the cost. For everyone else, the rules seem increasingly opaque, the benefits are increasingly uncertain, and the thought of just giving up without playing seems more appealing all the time"(15). Tough made it clear that the gap between families' income will continue to widen the inequality in individuals' opportunities to pursue higher education. In other words, wealthy students can generally pursue higher education with little pressure on the admission, while students from low-income families must carefully weigh the risks and may not even be admitted to top-tier universities.

Family Factor:

The ability to succeed in higher education is also heavily influenced by family background. The admission officers often ease requirements for alumni's children, further perpetuating the divide. From the given data, 90% of students attend public universities or community colleges, many of whom come from working-class or low-income backgrounds. For these students, the financial return on a college degree is increasingly unclear and uncertain.

However, after factoring in rising tuition and student debt, the financial benefits of a degree have started to decline. Despite this, higher education still leads to higher income, as well-paying jobs typically require a degree, while those with only a high school diploma often have access to fewer job opportunities, primarily limited to lower-wage service positions.

Looking ahead, the college wage premium is expected to increase, with the prediction that the U.S. labor market will face a significant shortage of workers with bachelor's degrees by 2030.

The most challenging part of the process for me was the reading itself. I needed to read with five themes in mind while simultaneously organizing the information. It was more challenging for me because it required me to focus on five lines at once. However, I overcame this challenge by understanding the structure of the article. Once I identified the topics Tough discussed in each section, I only needed to focus on one or two key aspects per section.

For me, organizing the information and building this map was surprisingly interesting because it was structured and logical. I could integrate the data and opinions given in each of Tough's articles and organize how they contributed to a more general statement. This process helped me tremendously, as summarizing ideas and expressing others' opinions through mapping is an effective way to test my understanding of an article and how I can apply it to support my own thoughts. Besides, the discussion in class was also valuable, as I learned more different perspectives from my peers.

Overall, I believe writing Project 2 has enhanced my ability to organize information, as I had to ensure that I did not include personal opinions during the writing process. It also helped me further develop my skills in summarizing information and expressing ideas clearly.