Study On Personal Education Cost-Benefit Of Undergraduate From Rural Areas

Cost-benefit analytic method has been applied to educational investment area for more than 50 years, which has become more and more ripe. But until now there is not any study on the personal education cost-benefit of undergraduate from rural areas.Recently,the rate of students coming from rural areas has increasing constantly, and since 2003 half of the freshmen are coming from countryside. So the economic analysis on personal education cost-benefit of undergraduate from rural areas is quite necessary.Concretely,the core issues in this thesis are: how to measure personal education cost and benefit of students from countryside and how to use net present value method ,present value index method and internal rate of return method to analyse cost-benefit.Based on the survey of 1200 samples in Northwest A&F University, this paper comes to the conclusion that the personal education direct cost of collegians from countryside is RMB 6197.35 Yuan annually. According to different income growing rate and discount rate, personal education cost is RMB 62940.89 Yuan to 70384.45 Yuan totally. And based on the survey the average income of college student is RMB 31814.4 Yuan per year. These data establish the basic of the comprehensive analysis. Through measurement, the method of net present value, present value index and internal rate of return have come to the same conclusion that it is wise for the students from countryside to choose higher education. The internal rate of return for students from rural areas is 35.309% or 33.136%, which is much higher than the internal rate of return of urban collegians and material capital. The reason of the result may be that the undergraduate from rural areas have lower personal education cost which is determined by household income.Through positive research, this article concludes that the results of cost-benefit analysis should attract more attention from rural families, students per se and the governments. For the students of countryside, they should know the policies of the school they want to go to beforehand so that it can enhance the opportunity to go to university successfully. For the rural families, they should try their best to give their children a chance to accept higher education which can change the whole life of their children and themselves. For government, although it is reasonable to share cost, for the poor in the countryside government should carry out corresponding policies to ensure equal educational opportunity. For instance, officers should develop and consummate the state-provided students loan.Additionally, it is much better to give more opportunities for students from rural low income families to go to college than collecting individual income tax to narrow income gap.