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College Parents Prep Founder Jim Boyle on the rising costs of college facing students and their parents.
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A growing problem with education in America today the income tuition gap.
Our wages have flat line Bubba Costa college shooting through the roof if education is an investment worth making how -- we afford it joining me now Jim Boyle.
Founder -- college parents -- Jim great to see you.
Nice to see you again -- well.
Let's talk about this chart it's really astonishing you look at this and the cost of college -- go through the roof.
Income flat lines and this of course means of people can't even afford college.
I wouldn't get -- how you deal with that in a second but first I want to understand wire college costs rising so quickly.
Well -- the basic law of supply and demand but we all learned in economics 101.
There's a relatively fixed supply of seats and at a traditional colleges and universities in the United States.
And a very strong demand.
Handset upward pressure on prices there's this baby boom echo children of baby boomers and now course children and -- actors.
Do want to go to college and a relatively fixed number of seats -- the prices go up.
Isn't there also -- that competition going on between schools.
So they keep batting in frills extra is the sushi bar -- really nice GM.
And that adds to tuition costs.
Yeah -- university Richmond was an interesting experiment several years ago the board actually decided to raise the price dramatically.
And what happened was the perception of the school went up and their application shot through the roof -- so it's just it's counterintuitive but.
I -- I think parents want the very best for their children.
And unfortunately many parents just make huge stretch decisions.
About how much they're gonna pay for college -- with -- you know sacrificing their own financial future in the process.
I couldn't agree with you more they make that trade up they say hey I'm gonna stop contributing to my retirement and put all my money my kids' education that's not a good DO.
Let's talk a little bit about.
Should we make this investment in the first place I mean is there a way to scale -- -- should we think twice before we invest.
Well in I'm doing this interview from Atlanta and a stone's throw from Georgia tech university.
There.
I think it's pretty cut and dry a big -- from -- attack and engineering degree is going to probably lead to a very good job a very decent paying job.
However.
Global arts degree or -- a standard issue degree from state university acts.
Isn't necessarily in this economy going to lead to a job right away.
So I think parents need to make some hard choices about whether.
You had to start off at a community college.
And get that associates degree under the students fell almost training wheels for college if you will before they go on -- -- the four year degree.
Well are there other ways to close that that income gap tuition income gap.
Well I think you know it's it starts it did that it works both ways for colleges I think it's gonna take a market.
Leading school to decide they're governing board to decide enough is enough.
And -- start -- that you know bring out a big box retailer kind of point -- -- to education where they provide a quality education.
At a discount price and I think that kind of school would attract applications.
In this day and age.
By the multitude and then other schools will follow because there's there's a certain degree -- herd mentality and higher education -- -- same time and let me interrupt -- Americans that's a fascinating idea.
Who would be the -- senate -- do that why why would college administrators agreed to like cut the price.
Well I mean here's what I mean due to lower that what they call the sticker price for every one.
Rather than what they do you right now where they have the sticker price.
That doesn't really mean a lot.
Because then on individual basis they offer tuition discounting.
Often called -- merit scholarship to students bringing the price down on individualized basis.
And then in the end result is that much and a higher and higher sticker price.
Because they take the money from the people who do full day.
And and then dole it out to to those who are receiving some type of tuition discount while it is I think a flat rate would would be attractive to parents.
Yeah absolutely I mean anything to bring the cost down I think that you know do you really need the sushi bar -- -- need the fancy pants swimming pool I have probably not.
Any other ideas for -- out there were starting to hear that more and more students are deciding to go to a two year institution rather than a four year institution.
Does that make sense in this climate.
I think it makes a lot of sense in the end you -- -- get that diploma.
And I know as as someone who's hired a lot of young people I actually look favorably on someone who started off.
And got a community college degree and then moved on in and got their undergraduate degree.
I think it shows that you know a great deal of you know that stick to would have nest that they that they took that initial step succeeded and moved on to get they're there for your degree.
I think that parents need to need to look hard at their family expenses for those who are parents of younger children.
To the extent that they can save -- that the child is from birth to eighteen years old then the pain of paying for college in real time.
Is going to be lessened to some degree.
And then by the same token.
There's there's a lure of putting off some college expenses by taking out loans.
But then you know we've we've all read the stories that students and their parents are piling up enormous debt burdens for higher education.
Because they're they're making these decisions that I think are not necessarily in the best interest of the family.
Average debt burden right now -- 111000 dollars humor -- have to leave it there are great stuff thanks for coming on the show really appreciate it.
Appreciate --
