Less Debt, More Degrees.
Author | Reid, Austin |
Position | HIGHER EDUCATION - Student loan |
With almost year-over-year increases in tuition prices over the past three decades, there's a perception that college has become increasingly unaffordable. This view is only bolstered by the ever-growing national student loan debt, which currently sits at $1.7 trillion and is now the second largest consumer debt holding behind mortgages.
While the economic return for a college degree continues to be strong, many students attend college but never finish. Graduation rates remain stubbornly low, with around 6 in 10 students graduating four-year institutions within six years, and fewer than 4 in 10 students graduating two-year institutions within three years. There are also increasing numbers of students who earn degrees that don't have strong value in the labor market, making loan repayment difficult.
States have been making efforts to address college affordability and student outcomes. Through fiscal year 2019, states had collectively increased per-student appropriations for eight straight years. Total state and local funding for all higher education reached $100 billion for the first time in 2019. In recent years, states have expanded statewide college promise programs and increased investments in need-based financial...
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