The Information Problem in College Success

Over half of low income students in the US go to a college of a lower quality than they could get into. This leads to an increased chance of dropping out, lower lifetime earnings, and more. At beyond.uptake, we believe by nudging students into better performing schools we can help tens of thousands of additional students graduate every year.

There are few decisions as important as whether and where to go to college. It is one of those decisions that has ramifications for decades. For some, this is a well informed choice. They spend months visiting schools, going on tours, and sitting in on classes. They look through brochures and talk with friends and family who are alumni of the school. They spend time with counselors helping them weigh the benefits and disadvantages of schools as they compile a robust list to apply to.

For other students though, the decision is not well-informed. There are no campus visits. No family or friends that are alumni. No counselors spending time helping them navigate this important decision. The student is on their own in making this life-altering decision.

Many students in this situation know the importance of going to college, but it feels like a singular decision, do I go or not? That feels like the biggest hurdle. Making the decision of where to go is more confusing. Students in this situation might believe that all colleges are largely the same, that it doesn't so much matter where they go but that they go at all.

Unfortunately though, not all schools are the same. Graduation rates can vary dramatically by race. Some schools are better prepared to support first generation students than others. Some lead to better future earnings and career opportunities. This information is not very accessible or presented transparently to students.

Stanford Economist Raj Chetty has found that colleges vary widely on how well they move students from the bottom quintile of family income into the top quintile. Put differently, certain schools, if chosen, would dramatically improve the lifetime earnings of youth coming from low-income families.

At beyond.uptake we have developed an application called Student Union that is helping students make a more informed college decision by giving them better insight into their chances of success. I'll be writing a future post about how we are going about doing that but in the meantime you can learn more here.