Understanding the Generational Gaps in Homeownership | St. Louis Fed (stlouisfed.org)
The % of adults who went to college in the 1970s was vastly smaller than today, hence, fewer “Baby Boom” generation adults, overall, had college loan debt. Supposedly they are looking only at those with a college degree, but this change in percentage also impacts the costs of college.
Today, the percent with a college degree is about 4x greater than it was for the baby boom generation so of course, far fewer “boomers” had college debt – because they did not go to college.
The number of persons having a Masters or PhD has doubled in just the past 20 years: Number of People With Master’s and Doctoral Degrees Doubles Since 2000 – Coldstreams
The percent of adults having a Masters degree today is on par with the percent having a 4-year degree in the early 1970s.
As everyone was pushed into higher education, demand for access grew – while supply at the more prestigious universities did not. Hence, colleges began raising prices (see chart on this page). Early in the 2000s, many states reduced public funding for public universities, shifting costs to rising tuition.
Consequently, this demand increased costs – and future debts, and played a critical role in the higher prices for college.
In 1988, the acceptance rate for Columbia University was 65%; as of 2014, it’s 7%, according to US News & World Report. Likewise, the University of Michigan’s acceptance rate dropped from 52% to 33% in the same time period.
Now & Then: How College Is Different for Millennials Vs. Baby Boomers (businessinsider.com)
(Reminder – this is true for elite universities – most schools accept the majority of applicants, but these are less well-known state colleges without name recognition.)
Additionally, a college education in the ’70s was different than a college education today. Today we see significantly improved housing and services, food courts, gyms, fast Internet (didn’t exist in dorms 25 year ago), bloated administrative staffs, and items not present previously. Our dorm was a long wing with a community bathroom and shower at the end – at some campuses today, dorms are coalesced around a small set of rooms with an in-suite bath (The student experience — then and now | Professional supplements | The Guardian). This type of design costs more. Part of the higher costs is because of an expectation of a higher quality living standard.
College textbooks are a rip off scam that has gotten much worse today. You are usually required to have the latest edition and publishers make minor tweaks each year to “obsolete” last year’s books, to eliminate a used market. Many professors are unaware of the costs of the texts they use.
The point is that comparing college in the 1970s or the 1980s to today is fraught with the problem of comparing things that are not the same.
Each generation has had its own challenges, which are not identical.
Consequently, these surveys compare dissimilar experiences but pretend they are the same experience across decades.
Related:
Now & Then: How College Is Different for Millennials Vs. Baby Boomers (businessinsider.com)
