Previously, we covered a detailed report on the 50 most educated countries in the world which showed that better and higher education can lead to increased earnings for the individual as well as overall benefits for the economy such as an increase in national income growth.
Our report was compiled based on Insider Monkey’s global education index. The index scores the most educated countries based on three metrics: the number of universities in that country that are ranked in the top 1,000 by the QS World University Rankings, the average rank of all these universities, and the per capita education expenditure by the government of that country. You can review our detailed methodology by going to Insider Monkey Global Education Index.
The United States was found to be the most educated country in the world, with a per capita education spending of $4,371. A total of 142 universities in the country are ranked in the top 1,000 by the QS Rankings, and the average rank of all these universities is 432.82. Three out of the top five QS-ranked universities are American: Massachusetts Institute of Technology (1st), Harvard University (4th), and Stanford University (5th). But why is the US one of the top rated countries for education? Is the government working to improve the education system further in some way? Let’s investigate.
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The US Education System is Popular
The popularity of the US education system is not limited to within the country. According to the 2023 Open Doors Report by the Institute of International Education, the US had 1,057,188 international students during the academic year 2022 to 2023. This was a 12% increase from 2021-2022. This is the fastest growth rate in 40 years. A 2022 release by Project Atlas revealed that the United States is currently the world’s most popular destination for international students, hosting around 15% of the total.
According to Education USA, the US higher education system is attractive to students because it is highly flexible and diverse in the type of institutions available to students. Currently, there are 4,000 accredited higher education institutes in the country but the overall system is highly decentralized, which makes it quite independent from federal government regulation.
The Biden Administration Wishes to Introduce Several Changes
On May 1, 2024, CNN reported that the Biden administration had approved the cancellation of $6.1 billion of student loan debt. This loan was held by 317,000 attendees of The Art Institutes, a network of for-profit colleges that is now defunct. The colleges were accused of misleading students about job placement rates and average salaries of their graduates.
To date, the Biden administration has canceled a total of $160 billion in student debt, which was held by around 4.6 million borrowers. This makes up almost 10% of all outstanding student loan debt at the federal level. The Biden administration has been delivering student debt relief through several existing programs targeting specific communities such as those defrauded by their colleges or permanently disabled borrowers. While some hold the policy in high regard as it offers relief to many distressed students, others believe it might be a bad incentive for colleges in general.
Top Competitors of the US in the Education Space
Even as American higher education continues to be seemingly popular among international students, local students are starting to feel a bit different. A 2023 survey report by Gallup revealed that only 36% of Americans had a ‘great deal’ of confidence in higher education, a number which was as high as 57% in 2015.
However, the United States is falling prey to competition as well. An analysis by HolonIQ revealed that four countries receive 37% of all international students: USA, UK, Australia, and Canada. In 2000, the US received 60% of all international students coming to the ‘Big Four’, but in 2023, this had dropped to 40%. Despite still being dominant, the country is becoming susceptible to competition as other countries continue to achieve upward growth.
The United States is home to some of the world’s best universities and also has one of the highest per capita expenditures on education across the globe. However, the US is notorious for having some of the highest tuition fees in the world and several other countries offer comparable education at a bargain. See our detailed report on the 50 Most Educated Countries in the World.
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