Tuition Affordability - A Tangled Mess
Introduction
The cost of a college education has continued to rise at an alarming rate. Since 1985, tuition, room and board at both public and private colleges has risen 54% while the average annual income in the United States has only risen by 22% (U.S. Census Bureau, 2021; U.S. Department of Education, National Center for Education Statistics, 2021). Further, as families see increases in daily living expenses such as food, clothing, housing and transportation, the act of saving for college has become more difficult (Marcus, 2018; Murakami, 2020). Borrowing money to finance a college education has even become more common among high-income families with the amount of those who borrow increasing by 30 percentage points in the past 20 years (Pew Research Center, 2019). Though the number of people seeking a college education has risen greatly over time, the majority of institutions are unaffordable for the majority of students (Akers, et. al, 2019; Hoffower, 2019; Pew Research Center, 2019). Those hardest hit include students of color, those of lower socioeconomic backgrounds and first-generation students. While they may have what it takes to get into college, they are not likely to afford their first-choice institution, and choose a school that may not suit their needs (Pew Research Center, 2019).??
Why The Increase?
The tuition situation at American colleges and universities has come to a tipping point in recent years. Cooper (2020) says? “tuition inflation has risen at a faster rate than the cost of medical services, child care, and housing” (para. 1) and goes on to share that the cost of a college education has more than doubled since the turn of the century. Given the turn of the century was 1999, that is an alarming rate to many. What makes these statistics alarming isn’t necessarily due to the tuition increase, rather the fact the cost of living isn’t keeping up. This gap has only been exasperated during the COVID-19 pandemic. Parents and students who are responsible for making the tuition payments continue to wonder why the increase in tuition is not in line with the cost of living. Because a college education continues to be seen as a good investment, students and families are willing to incur this debt as there is still an 80% difference in income among those who graduate college, and those who only have a high school diploma (Heflin, 2019). This doesn’t mean they haven’t questioned the steep tuition increase, though.?
Why the increase? This is where the debate begins. A vicious circle of blame involving institutions, students, the state governments and the federal government over rising tuition costs can be dissected to provide some insight. In truth, not one single group can take the blame for the often unbearably high costs. Over the years, funding cuts by state governments have caused institutions to raise tuition to make up for the loss in funding (Heflin, 2019; Kerr, 2019). On the side of the federal government, increased funding in financial aid and access to Pell grants increases enrollees, causing greater demand on institutions’ resources (Hoffower, 2019; Murakami, 2019, Pew Research Center, 2019). Hefflin (2019) also cites large administrative staffs at colleges and the demand for more amenities on campus as reasons colleges are increasing tuition. With increases to grant funding comes a new type of student: One who may not have all of the skills needed to have a successful college experience on day 1. Additional support systems are required to meet the needs of the changing higher education population, and at a cost to the institution which is passed on to students in the form of tuition increases (Murakami, 2019, Pew Research Center, 2019). The evolving profile of a college student has also produced a more savvy consumer, one looking beyond the experience of campus life, football games, and extracurricular activities. More and more students are beginning their college education with the end in mind. They are looking for the most direct route to a good paying job with as little college debt as possible (Hiller, et al., 2021). To many, the value of a postsecondary education also goes beyond the monetary aspect.?
The Demand for Value
Hiller, et al. share students are not averse to paying for college as long as it’s seen as a good value (2021). A recent report released by the Postsecondary Value Commission in partnership with the Bill and Melinda Gates Foundation defines value in postsecondary education as “the clear value-add that postsecondary education can provide to students and society in both economic and non-economic terms” (2021, p.28). The Commission also identifies affordability as a barrier to postsecondary value that needs to be removed in order to provide equitable access to higher education (Postsecondary Value Commission, 2021). Framing what affordable looks like is more difficult than framing value, however. Frameworks have been identified to provide some insight to affordability, and ultimately, to value.?
The Rule of 10
The Lumina Foundation developed the framework called the Affordability Benchmark or the “Rule of 10” to illustrate what affordability would look like based on the circumstances of a family preparing for college. While it is expected families somehow would contribute to the cost of tuition the contribution should be that
With those calculations, families living below the poverty level would not have a discretionary income to save, and would therefore only be responsible for the amount a student could make while in college; about $3,600 a year according to Lumina. What remains unclear if the Affordability Benchmark includes the cost of tuition only, or if it includes tuition, fees, books, materials, or living expenses.?
Cost of Attendance
According to the Postsecondary Value Commission (2021), students and their families need to understand the cost of post-secondary education goes well beyond tuition, board, and fees. Institutions currently provide information to help potential students understand the overall cost of attending their school, and this calculation is based on the federal government’s definition of cost of attendance, or COA, but there are concerns the formula used lacks transparency.?
Changing Profiles, Changing Values
For many students attending a traditional four-year institution right out of college, knowing they will have access to everything they need on campus factors into the value of their investment. For any type of student looking at the big picture, the “top college-motivation of Americans is to get a good job” (Busteed, 2019, para 9). Someone who has spent some time in the workforce has likely better able to understand the need to connect what is learned to what prepares you to be successful in the workforce. For someone like a first-generation student, value may look like being able to secure a good-paying job right after graduation with as little debt as possible (Akers, et al., 2019). Someone from a more affluent family which has produced generations of college-educated students sees value taking on more student debt knowing they can live at home to pay some of that debt off while gaining experience in an entry level position which could ultimately result in a career with a lucrative income (Akers, et al, 2019; Marcus, 2018). While there are those who say value comes from career ready skills, there is still a debate on what those skills look like. Busteed (2019) criticizes those who try to say liberal arts is better than careerism and vice versa, and both are being impacted negatively. Employers are looking for “graduates who are both broadly-educated critical thinkers and who possess industry-valued skills and work experience” (Busteed 2019, para. 10).?
A Long List of Demands
The COVID-19 crisis has caused many to re-think their career choices, either voluntarily, or involuntarily. Boxall (2021) identifies six types of modern college students, each with their own perception of what college should look like described in further detail below
Undecided Students: Seeking a liberal studies program with the intent to specialize at the postgraduate level
Aspiring Practitioners: Seeking a program which offers a clear pathway into a profession requiring a high level of practical experience: Medicine, law, teaching, accredited apprenticeships, etc.
Artists: Will likely choose an institution which is a stand-alone conservatory or arts college; or an institution with a well-known arts program or school.
Specialists: Seeking a graduate program for the purpose of either conducting research, or strengthening their skillset as a practitioner in their field.
Upskillers: Seeking an education which will allow them to strengthen their skillset in their current career path, but do not want to pursue an entire degree program.
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Reskillers: Looking for an education which will provide them an opportunity to learn a new skill to enhance their quality of life and broaden their career opportunities.
While the pandemic sped up the rate in which the profile of a typical college student looks like, these types of students have been around for quite some time. A 2017 report shared that 20% of all college students are over the age of 30, that 36% are first generation students, and that “74% have at least one non-traditional characteristic” (Riddell, para 5). Riddell goes on to stress that the term “non-traditional” should be removed from the vocabulary of higher education leaders, as the traditional student has now become the minority, rather than the norm (2017). Each student above has a different idea of what a postsecondary education should do for them, and what affordability and value look like. With enrollment declining across the board, higher education leaders must be cognizant of the needs of these consumers while being careful not to price themselves out of the market.?
Responding to the Demand for Affordability
Stakeholders at institutions along with representatives of federal and state government have heard from the public that a college education needs to be more affordable. As stated above, all stakeholders must take the blame for the rising cost in tuition and work to address it.?
How Institutions Can Respond
Davis (2021) believes institutions do not have the luxury to wait for the federal and state governments to come to a consensus on the affordability issue and states that “those closest to the problem are closest to the solution” (para. 3). Many agree that there are things colleges and universities can do to address the affordability issue. Among those which garner the most support include clarifying tuition and non-tuition costs, ensuring pathways for degree completion, and increasing the offering of reduced-credit options.?
Cost Clarification
The Jack Kent Cooke Foundation released a report in 2017 which emphasizes the need for higher education institutions to “educate low-income students about how to pay for college” (Coker & Glynn, para. 7). The report finds that while colleges provide more than enough information about paying for college, it isn’t delivered in an organized or user-friendly format. It often comes in the form of various flyers, letters, and weblinks; and in some cases by request only (Coker & Glynn, 2017). This sentiment is echoed by both Davis (2021) and (Tiefenthaler et al., 2018) in that students are not made aware of all the financial aid options available to them nor do they understand the “total cost of a degree” (2018, para. 12). Without that knowledge, students end up with unexpected expenses, and work more hours than originally planned; causing burnout, lower grades, and eventually leading to dropping out of a program altogether. Coker and Glynn emphasize the need for not just access to financial literacy advisors, but in-depth counseling and education about managing tuition, expenses, and aid (2017). Miller (2018) questions the capacity of institutions to provide students with this much needed personalized counseling, though, as resources in these offices are generally spread thin, and often direct students to the modules on the federal website.?
Degree Completion Pathways
As expressed earlier, college often becomes less affordable to students when they have to spend more time than originally planned due to needing remediation courses in reading or math, general education requirements, and finding transfer credits don’t always count towards degree completion. Tiefenthaler et al. (2018) emphasize the need for universities to have a “laser-like focus on mitigating all factors that slow the time to the completion of a degree” (para. 16). The 4-year institutions which have the most success with ensuring students have a true pathway to degree completion are those which have a strong partnership with an area community college. California State University, Fresno and the State Center Community college district in which students are not only provided a clear pathway to degree completion; but they are also provided with a peer mentor who works with them from beginning to end (Avery & Bartee, 2016). Another example involves a partnership between George Mason University and Northern Virginia Community College in the offering of a pathway program in which students declare a major upon entry into the Community College to have a concrete understanding of what working to degree completion within four years will look like (Mangan, 2018). Both of these programs stress the need for a strong partnership between the community college and the four-year institution, and personalized advising and mentoring for the student throughout the program; preferably with the same advisor from beginning to end.?
Reduced-Credit Options
An element drawing more non-traditional students to for-profit institutions is the lure of degree completion in a shorter time frame. Many working adults don’t have the time or the money to take four years' worth of coursework. Even students starting college right out of high school don’t always see the point in taking so many credits towards a degree. Because of this, institutions are looking to an alternative used widely in other countries: three-year degree programs (Davis, 2021). Currently, institutions are offering three-year programs, but they are having to get creative to ensure students complete the needed number of hours in addition to valuable internship work through the use of intersession and summer terms (Moody, 2020). Moody also explores the feasibility of a 90 credit degree program model, popular in the UK, but that would also require some work from the accrediting bodies (2020). Another option institutions are leveraging is the offering of the certificate program. Since 2012, “public and private higher education institutions have added 41,446 degree or certificate programs” (Marcus 2018, para. 3). The certificate programs allow students to get job-specific training in a much shorter amount of time. Marcus (2018) does warn institutions to carefully review the demand for the certificate programs they provide, as development is often costly and doesn’t guarantee students are going to apply.?
How the State and Federal Government Can Respond
In the past two presidential elections, the issue of paying for college has come up as obtaining a degree becomes more difficult to afford for the average American. One idea which keeps presenting itself is the concept of free college. A 2021 report from Third Way frames the concept of free college as something that looks great on a bumper sticker, but it’s “rife with implementation, efficacy, and equity issues” (Feldman & Marsicano, para. 2). Marcus (2016) puts the often popular European free tuition model in perspective as schools in Germany experienced a decline in per-student spending, overly crowded classes, and little to no time for research when free college was implemented. Further, issues of equity arise since resources designed to support students who don’t know how to navigate the college experiences are limited to none. With the concept of free tuition for all being off the table for the time being, there are some things the state and federal government can do to address the affordability issue. These include increasing Pell Grants, and ensuring students have a clear picture of what the cost of attendance looks like.?
Increasing Pell Grants
Though a major increase in the Pell Grant was taken off the table in the recent spending package, experts still share increasing the Pell Grant is one of the effective ways of addressing the affordability issue (Coker & Glynn, 2017; Feldman & Marsicano, 2021; Postsecondary Value Commission, 2021). Increasing the Pell Grant is a more equitable solution as students are able to choose the school which is best for them, rather than the cheapest option (Feldman & Marsicano, 2021). The Third Way report referenced above shares a comparison of two North Carolina institutions, Wingate University and UNC Charlotte.
While the cost of Wingate is higher than UNC Charlotte, the four-year graduation rate at Wingate is significantly higher than UNC, making this a more affordable option to a student who may not necessarily be successful at a large public institution. Increasing the Pell Grant gives that choice. Further review of the above table also provides a strong argument as to why the federal government needs to clarify the overall cost to attend an institution.
Clarifying the Cost of Attendance
Currently, room and board costs for students who choose to live at home with their family are not calculated in the federal formula institutions must follow. Many students, especially those from low-income families contribute to rent, groceries, healthcare, and caregiving expenses. The Postsecondary Value Commission points out that not reporting this information does not provide a clear picture to a potential student, and that what looked like a good value on the surface turns out to be just the opposite when they are having to help support their families at home (2021). While affordability calculators currently exist, they are often criticized for lacking transparency (California Competes, 2020; Education Advisory Board, 2019; Postsecondary Value Commission, 2021) Having access to this type of information is critical, especially as the profile of the college student continues to change; towards one less likely to live in a dorm, utilize student health services, or purchase food off a meal plan. The federal government can update the formula used to clarify COA while state governments can help hold institutions accountable for updating their calculators based on an updated formula.?
Conclusion
From several perspectives, it doesn’t appear the cost of attending college is ever going to decrease drastically due to competing interests among state and federal governments, parents and students, and institution leadership. We appear to be in a cycle of states cutting funding to institutions and the federal government increasing aid options to make up for the rise in tuition due to the funding cuts. Models which have shown to lower the cost of tuition appear to cut into the overall value of the education, as supports that our most vulnerable populations of students need to succeed are often underfunded or eliminated in these models. Further, options which may look more affordable on the surface end up being more expensive in the long run. Steps can be taken to mitigate the affordability conundrum on the institution level by ensuring solid pathways to degree completion, accurate cost calculators, and considering the number of credits needed to obtain degrees and certificates. The federal government can ensure students have the ability to choose the best option for them by increasing the PELL Grant and also adjusting the formula institutions need to use in helping students to determine affordability. Stakeholders on all levels need to understand that none of these strategies actually lower the cost. However, students will continue to pay the cost if it is seen as a good value.???