Editorial Columns

Public Higher Education Remains a Good Buy

With most colleges and universities ready to send out next fall's tuition bills, students and parents have college costs on their minds. And many parents of today's children and adolescents are wondering if they will be able to afford higher education a few years down the road.

While it is true that higher education can be expensive, surveys show that most Americans overestimate the true costs of a college education, and the returns from the investment in college are growing larger each year.

If someone walked up to you today and offered an investment return of nearly a million dollars paid out over your lifetime in exchange for a payment of less than $25,000 invested over the next four years, you would probably find it hard to believe. But that is indeed the increased earnings today's college and university graduates enjoy over the earnings of a high school graduate.

The average lifetime earnings of a male high school graduate is about $1.1 million. Add a bachelor's degree and average lifetime earnings increase to almost $2 million. Add a professional degree and average lifetime earnings shoot up to approximately $4 million.

Education is an investment that pays

There is a modern myth that college tuition often costs $20,000 or more a year, and that it costs more than $100,000 over four years to attend a high-quality college or university. The fact of the matter is that only 36 of the more than 3,000 colleges and universities nationally charge tuition that high. Even in a state like Pennsylvania, where some of the more expensive public colleges in the nation are located, a student entering Penn State will spend less than $25,000 for tuition and fees for all four years.

From that perspective, such an investment in one's future should look like a pretty good deal. There is another reason state-related and state-owned schools like Penn State are a bargain. Penn State's actual costs for a four-year degree, for example, currently run more than $50,000 per student over those four years.

The difference between tuition charged and actual costs is made up from several sources, the largest part of that difference from an investment the Commonwealth of Pennsylvania makes in institutions such as Penn State in the form of an annual appropriation. Other funds are provided by alumni, donors, and from self-supporting operations.

To be sure, there are other costs involved in attending college beyond tuition, such as room and board. But no matter where you spend those four years of your life, there will be some kind of room and board expenses.

I think it is important to talk about tuition costs because surveys we have commissioned at Penn State and surveys developed by national groups seem to come to the same conclusion: much of the public thinks college costs are higher than they are in reality.

A survey of Pennsylvania residents showed, for instance, that almost half of the residents of the state thought Penn State's tuition was several thousand dollars a year higher than our actual tuition figures.

There is some other good news. About three fourths of Penn State's students receive some sort of financial aid. In 1995-96 our students collectively received a total of $100 million in grants and scholarships. They also received more than $226 million in additional support in the form of loans and other student aid.

Attainment of a college or university diploma is one of the most significant factors that can change an individual's life. Education is the key to not only economic prosperity but also the path to enhanced human and social development, as well as improved quality of life.

The highest average salaries in the United States are earned by those who have college degrees. The lowest rates of unemployment are for those who have college degrees. According to recent Census Bureau data, unemployment is two to three times greater for those with only a high school degree compared to those with a college degree.

Higher education is a key to personal success and an educated population is critical to the success of society. Every penny Pennsylvania invests in higher education is repaid in multiples. Cost-benefit studies have shown that for every dollar a state invests in undergraduate education, the return on investment from tax revenues alone is more than $4. That's a four to one rate of return to the taxpayers of the state.

Education is the driver for economic, societal, and cultural vitality. And higher education offers a piece of that vitality at an affordable price to any resident of the Commonwealth.

The American system of higher education is the envy of the world, and access to an affordable education is what makes it so unique.

Public university tuition is high in Pennsylvania compared to other states, and those of us in university administration are painfully aware of the sacrifices families must make to make higher education possible. We work hard to be good stewards of the resources entrusted to us -- your tuition and legislative appropriations. And we endeavor to keep our costs as low as possible while providing the highest quality education we can.

If someone offers to sell you the Brooklyn Bridge, don't rush to pull out your checkbook. But if someone claims you can change your life by investing in four years toward a degree at a public college or university, you might consider what they have to say.