Team 1: Story 2: Increased Cost in Higher Learning

HISTORY AND BACKGROUND

Over the past several decades the cost of attending college in the United States has increased, and Mississippi is no exception. Rising tuition fees and living expenses have made higher education almost unaffordable for many students and their families. The increase is not only affecting current students but also past and future. Students may not be able to attend their dream school because the price is higher than their family’s income. Past students are paying off debt until the day they die and that is no way to maintain a healthy income to raise a family on. A major reason for this trend is the decline in public funding for higher education and states not being willing to put up the money. As state support has decreased colleges and universities have raised tuition and other costs to make up the difference. Federal student aid plays a large part of this equation as well. As more aid is given out through grants and loans, colleges have less of a reason to keep tuition low. A theory known as “Bennett Hypothesis” named after a former Education Secretary, William Bennett, suggests that the easier the access is to federal money, the higher colleges will raise their tuition because they assume it to be “affordable.”

In the early 2000s, the rise in tuition costs coincided with a broader shift in the economy. As the United States entered the era of economic globalization, the demand for a highly educated workforce increased. Many colleges and universities began to expand their research programs, create specialized degrees, and build larger campuses to meet the growing demand for higher education. These expansions, while designed to enhance the academic offerings of colleges, also led to a rise in operating costs. New buildings and faculty additions along with research initiatives required significant investments, which of course led to tuition increases.

By the 2010s, the issue of college affordability had become a national debate. The increase of student loan debt, along with the rising cost of tuition, led to needing changes immediately. Federal and state policymakers began to examine the factors that contributed to the large increase in tuition rates. Some believe it was due to universities overspending on faculty salaries and non-essential amenities. This period also saw a rise in the numbers of students attending for-profit colleges, which, while offering flexible learning options, often came with higher tuition rates and less job prospects for graduates.

In Mississippi, state funding for public universities has dropped significantly. According to national data Mississippi ranks near the bottom in per-student funding compared to other states. In the 2024-2025 school year, tuition at Mississippi’s public universities increased again, with in-state tuition reaching nearly $8,833 on average and out-of-state tuition rising to around $13,516. Another thing that has contributed to the increase is an expansion in amenities and nicer living. The nicer the dorms and more things there are to do on campus contributes to that increase. Mississippi State University had an in-state tuition of $2,848 in 1995, 3 years before the Joe Frank Sanderson Center opened. In 2006 tuition had risen 11%. This is because a new amenity was added creating more attraction meaning a raise in tuition. The new dorm, kinesiology building and renovated cafeteria is expected to increase tuition 5% due to amenity expansion and the fact that the school will be able to increase its acceptance numbers. Which nationwide is on the rather low side, but we are still seeing an increase in cost when the economy is in hardship right now.

Another factor contributing to the rising cost of college is inflation. This has affected everything from classroom materials to utilities and even what colleges are prepared to offer. Many universities also face things like construction costs, especially in states like Mississippi where storm damage and severe weather are a very common occurrence compared to other states. The rising cost is very closely related to a growing burden in student debt. In Mississippi, over half of college graduates leave school owing an average debt of around $30,000. This financial burden right out of college when you are trying to learn how to manage money and have an actual job for the first time is hindering to many things such as buying a house or even a car.

Housing is another growing challenge. As the cost of living increases nationwide students are struggling to afford rent and other basic expenses it is becoming an issue of students choosing to live closer to home and not pay the housing fees rather than going to the school they want. As a result of these challenges, Mississippi and many other states are experiencing what is known as “brain drain,” where educated young people leave the state after graduation to find better job opportunities elsewhere because they are not provided within the state, they have lived in. This trend affects the state’s economy and reduces the return on investment in public education. That states are relying on to keep the economy from drowning.

IMPACT AND THE BIGGER PICTURE

College is getting more expensive every year, and many schools try to explain the rising costs by saying they’re improving student life. They build new dorms, upgrade gyms, and add other campus features as in new buildings every year. But a lot of students are wondering if all these extras are worth the growing price especially when most of them are paying with student loans and must find a way to finance college while the economy doesn't match the inflation of colleges.

While it is true that education has always been a financial investment, the growing divide between the cost of college and the return on that investment is becoming more problematic. With rising tuition rates exceeding the growth in the economy and many Americans salaries, there is a burden being places on students before they even enter the real world.

Student loans are what allows college to be accessible to many students, but they’re also one of the biggest problems that the American youth face today when deciding on college or not. At first loans seem as if they’re just part of the financial aid package, and many students take them without really understanding how long it will take to pay them back. In Mississippi, the average student graduates with around $30,000 in debt. This leaves many students with the question of “was my degree even worth it?”

What makes it worse is that colleges don’t always explain the long-term cost. They make it sound like loans are just a step on the way to success and climbing the ladder into being an adult. But when payments start after graduation, many students struggle to keep up.

Colleges also raise prices by offering more and more amenities. Some campuses have fancy dorms upgraded dining halls and expensive rec centers which makes a campus more attractive to the average person and makes them think about going there. But not all students care about those things. Many would rather pay less and skip the extras you are here for an education they say not what comes with it. At the same time, some schools are cutting programs while also increasing class sizes. So, while the campus looks nicer the quality of education might not be improving because of the way they run the staff or other areas of it.

There’s also very little transparency about the distribution of tuition dollars. Students rarely see exactly where their money goes. Colleges are not prioritizing affordable educational quality over flashy amenities. Higher education has become more about running a business and less about the education students are receiving.

Right now, it feels like students are paying more but not always getting more in return. Colleges are running like businesses and students are treated more like customers than students. Loans are handed out easily, but the long-term impact is often hidden so students won't bat an eye when it comes to what the actual effects are later in life. And by the time students realize what they signed up for it’s usually too late. If schools do not begin to make this change, we feel that higher education as we know it will begin to change.

The rising cost of college in Mississippi is driven by declining state funding, inflation, increased housing costs, and the growing burden of student debt and it is creating a crisis that is both unsustainable and unjust. As the price of tuition continues to out race the growth of the economy and wages, students are left with limited options; take on debt or not go to a college that would further their careers. This situation is not just detrimental to the students who are directly affected but also to the state’s economy because of what it does to the state’s workforce an uneducated state is a state that doesn't have a future. Without meaningful action the higher education system in Mississippi will face damage that could leave future generations locked out of opportunity.

Addressing this issue requires a solution that involves multiple levels of action. First there must be a concerted effort from both state and federal governments to restore and increase funding for public colleges in the state of Mississippi to ensure a future. Mississippi ranks near the bottom in per student funding, a disparity that has had a direct impact on tuition rates and the quality of education. If state leaders are serious about providing access to higher education, they must make education funding and create policies for funding a priority. This means making sure that public institutions are funded so they are not forced to raise tuition fees year after year to make up the difference that these colleges have forced students into.

However simply restoring funding won’t be enough. Universities must also adopt more transparent financial practices. Students deserve to know exactly how their tuition dollars are being spent if they are going to pay so much money for these as universities call them “necessities.” Currently many colleges invest heavily in expensive amenities such as fancy dorms, upgraded gyms, and lavish student centers, yet they often cut back on essential programs such as getting rid of faculty members, or increasing class sizes to try to make up for the difference that the school has put themselves in. This trade off may make campuses more attractive to students but it doesn't change the fact that the students feel better.

Students are already faced with the pressure of going to college, because they are told that if they don’t go, they will not be successful in life. The focus on trade schools and technical colleges are beginning to be less and less because of the push for higher education. However, if the costs continue to rise students will not be able to attend a 4-year university. The push for higher education is stressful and adding the stresses of debt from student loans does not make the decision any easier. When a student is offered financial aid, they are told that is the best way to have their education paid for. The transparency of financial aid is the issue. No one explains “subsidized and unsubsidized loans” no one explains the pay back method to the students. Over half of the college population in the United States are first generation college students, this further adds into the lack of knowledge when it comes to knowing where the money is going and how financial aid truly works.

The fancy amenities and living situations only go so far in a college students’ education. Having these things are a pro, but over half of the students on a college campus even utilize these places. Dining options and ensuring that the professors that are being hired have the correct knowledge, along with academic advisors. Academic advisors and professors pay the largest role in a student’s time in college. There needs to be more focus on their abilities for a student rather than having somewhere nice to work out. This is where the money should be going and if that would become more focus, the rising cost of tuition could begin to decrease.

Lastly, the future of higher education in Mississippi may lie in innovation. As technological advancements continue to reshape the world, higher education must evolve to meet the changing needs of the workforce. Expanding online and hybrid learning opportunities could provide more affordable and flexible options for students, reducing costs associated with campus facilities for students to complete their degrees in less time and at a lower cost while not having to pay for things that they will never use.

The challenge before us is not just about lowering the cost of tuition but about rethinking the whole approach to higher education. Mississippi like many other states must find ways to balance the needs of students with the financial realities that universities face. With increased transparency greater collaboration and a commitment to innovation there is a way forward that students would be satisfied with. However, if no action is taken and the tuition costs keeps climbing year after year the burden will continue to fall on students who are already facing a growing financial hardship.

Email the team at wdm253@msstate.edu with any questions

View our Sources