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Jermaine Cobbs Ms. Murphy English 101 October 10, 2011 Economy effects on College and Students In 2008 the United States economy took a critical decline. The decline put the United States on a path to an unneeded recession. The recession has the United States in a major debt. The government attempted to beat the recession with all types of escape plans. Congress constructed bailout plans and other economic instruments to come out of the conflict. Early this month Congress overcame bitter ideological differences and passed a $700 billion bailout bill that permitted an immediate infusion of $250 billion into the banking system. Along with other loans, the government's potential tab for rescuing the American economy totaled at least $1 trillion in midOctober. The federal government also announced on Oct. 23 it would guarantee up to $2.8 billion in debt and money market deposits. (Billitteri 1) The bailout plan did not work. As the recession set in problems did not halt. The failing economy has great effect on colleges and college students. Higher wages and expenses made it difficult for Universities to operate, among other obstacles. The fall of the economy lead to a higher cost of living. As the cost of living rises citizens struggle to make ends meet. People have to sacrifice to maintain the basic. One of

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those things that people have to sacrifice is college. Many people who wish to attain a college education cannot receive it because of financial issues. When state finances tighten up, support for higher education often dwindles. "Families are having a harder time finding money for higher education," says John D. Walda, president of the National Association of College and University Business Officers. "That could affect applications, and that will certainly make for more competition among institutions." (Wolverton 2) College is expensive and not having funds to pay for it is stressful. Some families did save money for college but due to financial problems, parents have to pull money from those savings. Another result of the economy is the rise in unemployment. The rise of unemployment is also a low blow to todays college students. A large percent of college students fund their selves through college. The large demand for jobs and the small number available leaves students in a bind. Students who have jobs to stay in college can lose focus. The result of financial issues is a stressful situation and in turn can affect a students grades. Transportation is also a big issue for scholars due to lack of funds. Gas prices continue to rise and the need for gas is constant. Student workers need mobility between work and school and sometimes finding mobility is a problem. For students who are a residence of a university must deal with not going home to see their families. Not being able to go home to see parents is a big issue to scholars. The economy hinders homesick freshman from the love of parents and the comfort of their home. Due to the economy it is more expensive to travel home than it has been. Gas prices in the year 1999 averaged $1.17 per gallon. Gasoline prices today average $3.10 per gallon. So students cannot afford to go home and are forced to stay on campus.

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The price of fuel may also influence students' decisions about whether to attend a residential college or a commuter school, but not in the way people might expect. Even with high fuel costs, students might choose to live at home and attend a commuter school to save money rather than attend a far-off residential university. (Carlson 2) The economy also effects college students long term. One long term effect and potential problem is the financial struggle. The reason this is such a big problem because so many students pull loans to pay for college. The students take out these loans and what happens is they cannot pay the loan back. Not being able to pay the loans back is an issue in itself. Missing payments makes your credit take a turn for the worse and the longer you take to pay it the more you have to pay because of interest. With bad credit, it is nearly impossible to get a house, a car, or anything else you want. The result of interest gives you more debt then you already have and leaves you in a deep hole. Another problem is the unemployment issue. Unemployment will have many future college graduates in dire need of jobs. The lack of jobs will put everyone in a bind until the economy gets itself out of trouble. If the economy keep going at the rate that it is going, people wont have a retirement or social security. In result of problems, people will have to work longer than the actual retirement age to reach retirement. The economy will effect students years to come. Hardly effected is the college itself. Due to the economy, college enrollment has escalated. This is a good thing but because of this colleges lose funds. "Economic downturns trigger a debilitating circumstance of increased enrollments and decreased funding," says Eduardo J. Padrn, an economist and

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president of Miami Dade College. "Low-income students at community colleges bear the brunt of this paradox." High tuitions can put big colleges in the hole. Families cannot afford expensive colleges so they choose the cheaper route and go with smaller institutions. Also funds started to deplete. Funds cannot be given as they once were because of the lack of money. A few bad years could wipe a university out of existence. Tuition and fees at public colleges and universities which award most U.S. bachelor's degrees soared by 14.1 percent from the last academic year to this year, according to the College Board's annual report on higher-education prices, released Oct. 21. That was the sharpest increase in at least three decades, and it followed a 10 percent hike last year the steepest since 1981. Community colleges increased tuition and fees by 13.8 percent, while costs at private four-year schools rose 6 percent. (Price 2) As the prices continue to soar it becomes harder for people to attend college. Without people enrolling it is going to be hard to keep the university moving financially. As rising college prices have outpaced student aid, the proportion of American high-school graduates enrolling in college also has dropped to 61.7 percent in 2001 from a peak of 67 percent in 1997. In 2000, the United States fell to 13th place compared with other nations in the percentage of the population studying for a bachelor's degree or higher and seventh place in the proportion pursuing a lesser degree. (Price 4) Universities have caught a backlash from the fall of the economy.

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The fall of the economy has affected the entire United States. The government has tried bringing the economy back to its peak. Colleges and colleges students are highly affected by the fall of the economy. Scholars have to deal with all types financial issues due to the economy. Students have to sacrifice things they want to do because of low funds. The economy also has a big affect on the future of the students. Colleges are faced with losing funds even though the college gets a boost in enrollment. For those colleges that have high tuitions are faced with losing students. The fall of the economy causes many difficulties and the only way to make it better is to have a better economy.

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Works Cited Billitteri, Thomas J. "The CQ Researcher Online." CQ Press Electronic Library. Web. 10 Oct. 2011. <http://library.cqpress.com/cqresearcher/document.php?id=cqresrre2008102400>. Carlson, Scott. "Economy Could Cause Trouble for Smaller Colleges - Administration - The Chronicle of Higher Education." Home - The Chronicle of Higher Education. Web. 10 Oct. 2011. <http://chronicle.com/daily/2008/07/3869n.htm>. Price, Tom. "The CQ Researcher Online." CQ Press Electronic Library. Web. 10 Oct. 2011. <http://library.cqpress.com/cqresearcher/document.php?id=cqresrre2003120500>. Wolverton, Brad. "Economy's Troubles Could Hit Colleges Unusually Hard - Archives - The Chronicle of Higher Education." Home - The Chronicle of Higher Education. Web. 10 Oct. 2011. <http://chronicle.com/weekly/v54/i29/29a01701.htm>.