America is inefficiently spending money on higher education

Money (Credit:Tax Credits/Flickr)

Main Point:

Although America is spending a huge amount of money on education but the country is spending money in an incredibly inefficient way.

Study Further:

America is one of the top most spenders on higher education as a percentage of Gross Domestic Product (GDP) along with Korea. It is ranked first in student-related spending per college graduate and as a share of GDP.

According to a new report from the Georgetown University Center on Education and the Workforce, America is spending a huge amount of money on higher education but if we consider the number of people actually end up getting through the college, it is more inefficient than almost every other developed nation. In this regard, Korea’s Postsecondary efficiency rating is better than America.

The following table shows that the United States has one of the least cost-effective postsecondary education systems among the developed nations:

Money spending and efficiency of different countries (Credit: Georgetown University)

Source:

Georgetown (pdf)

Usman Zafar Paracha

Usman Zafar Paracha is Assistant Professor, Pharmaceutics, in Hajvery University, Lahore, Pakistan.