SVB70 Final Draft Project 2 by

Paul Tough - Americans Are Losing Faith in the Value of College. Whose Fault Is That?

svb70 — 2025-03-02 18:42:59 UTC

The Rising Costs and Declining Benefits

svb70 — 2025-03-02 20:21:41 UTC

Over the past decade or two, college tuition rates have risen significantly. As a result, higher education feels more of an economic burden than an opportunity. Unlike various countries where public universities are heavily subsidized, the U.S. places most of the financial responsibility on students and their families while attending college. Paul Tough writes, "In 2007, total student debt stood at $500 billion. Today it is $1.6 trillion, and for many borrowers, their debt is becoming a serious burden" (Tough 7-8). The author highlights this factor because it is a reflection of how the cost of attending college has outpaced the wage growth in the United States. This is because, unlike many other countries where public universities receive substantial government funding, the US relies heavily on student loans to finance higher education. The Federal Reserve Bank of St. Louis finds that younger generations aren't accumulating the same wealth as older college students. This means that the college wage premium remains relatively high, and the college wealth premium has declined. Due to the rising college tuition prices, people have started questioning whether a college degree is worth the financial risk.

College as a Casino

svb70 — 2025-03-02 20:32:53 UTC

Tough introduces the idea that pursuing a particular college degree is similar to gambling, where students invest large amounts of money without guaranteeing a positive return. Tough notes that nearly 40% of college students fail to complete their degrees, which greatly reduces their chances of securing high-paying jobs and increases their risk of being financially unstable.

Lack of Hands-on Experience

svb70 — 2025-03-02 20:37:08 UTC

A major problem of higher education is that colleges fail to prepare students with the important skills to succeed in the job market. Employers increasingly seek practical experience, yet many colleges continue to emphasize the importance of theoretical learning over real-world applications. This leaves graduates unprepared for the actual workplace, and as a result, they tend to underperform. Due to this, various alternate pathways like trade schools, apprenticeships, and online certifications are becoming more appealing and popular. Many students feel that these options provide more full-proof and direct routes to employment without overwhelming the burden of student debt. Tough suggests that skepticism toward higher education will continue growing unless universities incorporate more practical learning into their curriculum.

Impact of a Student's Major

svb70 — 2025-03-02 20:40:57 UTC

Tough mentions a professor at Temple University, Douglass Webber's research, where the return on investment in higher education greatly depends on factors such as a student's major, tuition costs, and graduation likelihood. STEM and business majors tend to lead to higher financial returns, whereas humanities and social sciences lead to lower salaries. The author also mentions "that many students who start college don’t graduate — about 40 percent of them" (Tough 9). This is an important contention because if students cannot graduate, they struggle financially, making college an extremely risky investment rather than a secure path to financial freedom.

Political and Ideological Influence

svb70 — 2025-03-02 20:45:34 UTC

Political polarization is also one of the factors that has played a significant role in changing public perceptions of college. Over the past ten years, Republican confidence in higher education has dropped dramatically, from 56% in 2015 to 19% in 2023. Many conservatives believe universities are dominated by left-leaning faculty, and administrators prioritize social activism over practical education. Tough notes that this divide has contributed to declining enrollment among conservative students, further reinforcing skepticism about the value of a college degree.

Key Terms

svb70 — 2025-03-02 20:52:17 UTC

College Wage Premium - The additional income college graduates earn compared to those with only a high school diploma.
College Wealth Premium - The difference in accumulated wealth between college graduates and high school graduates over their lifetimes.
Ideology - A system of ideas and beliefs, often political or economic, that shapes one's perspective on social and institutional structures.
Casino - A system of risk and reward, often used metaphorically to describe an environment where outcomes depend largely on luck, such as the financial unpredictability of higher education.
Student Debt - The financial burden of student loans on graduates, affecting their ability to achieve financial stability and wealth accumulation.
Subsidized - Financially supported by the government or another entity to reduce costs for individuals, often referring to tuition assistance or reduced-interest student loans.