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The Path Forward: Enhancing the Value of Higher Education

A college education is often viewed as a key to a prosperous future, providing graduates with enhanced earning potential, a wider array of career opportunities, and an overall sense of well-being. These advantages extend beyond individual benefits, positively impacting families and communities and contributing to societal strength.

Despite these recognized benefits, only 36 percent of Americans report high confidence in higher education, according to recent surveys. This skepticism is rooted in the reality of soaring college costs, which outpace the available need-based financial aid, alongside the burden of student loan debt that many face, which raises ongoing questions about the actual worth of obtaining a degree.

Notably, data shows that for the majority, a college diploma remains a sound investment. Graduates consistently earn more over their lifetimes compared to those without such credentials, as highlighted by research from the Georgetown University Center on Education and the Workforce. Nevertheless, outcomes are not uniform; they vary significantly based on demographic factors such as race, gender, income before college, and the type of institution attended. In response, federal and state leaders and educational institutions must rethink policies and funding strategies to enhance the affordability and completion rates associated with college education.

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One effective approach to improving affordability would involve raising the federal Pell Grant’s maximum award, a move that could significantly benefit over 6 million low- and moderate-income students. Another impactful solution lies in implementing “first-dollar” free college programs, which cover full tuition and fees before accounting for other scholarships, as opposed to “last-dollar” programs that only cover what remains after other aid. Research conducted by the Institute for Higher Education Policy suggests that first-dollar initiatives offer greater value for students when compared to last-dollar programs.

Furthermore, improving completion rates is essential to maximizing the benefits of higher education. Federal support could be bolstered by increasing resources for the Postsecondary Student Success Grant (PSSG). Additional measures could involve easing transfer processes between community colleges and four-year institutions, providing reengagement opportunities for former students, and offering financial assistance for non-tuition expenses that facilitate academic success. Studies have shown that positive student experiences and a sense of belonging significantly enhance completion rates.

Data-driven strategies stand to inform both institutions and policymakers in developing targeted initiatives that improve economic outcomes for all students. For instance, research from our recent study series reveals a strong correlation between financial stability during college and higher post-graduate earnings, particularly in four-year public universities. This underscores the importance of increasing access to emergency financial aid and promoting financial literacy.

Moreover, findings have shown that institutions that depend less on part-time adjunct faculty tend to yield better economic returns for their students, suggesting that a commitment to quality faculty is also critical to student success.

Related: What’s a college degree worth? States start to demand colleges share the data.

Other insights from our research series include:

• Community colleges can offer greater economic value when they provide bachelor’s degree programs or are situated near four-year institutions, illustrating the necessity of established pathways to degree completion.
• In Michigan, public four-year institutions provide higher economic returns compared to other college types, yet gaps in post-college earnings persist based on gender, race, ethnicity, and chosen majors, highlighting the need for strategic investments and efforts to address systemic pay disparities.
• Hispanic students in Texas experience positive value from their education; however, challenges remain for lower-income and female students within this demographic, as evidenced by a study from the Research Institute at Dallas College.
• Rural-serving institutions may yield marginally lower earnings after graduation compared to their urban counterparts, yet their affordability remains a significant draw, broadening access to higher education opportunities.

Researchers play an instrumental role in exposing inequities and enhancing our understanding of the value of college. By increasing transparency regarding costs and anticipated earnings, we can empower students and families to make more informed educational decisions.

Additionally, colleges can leverage data to identify areas for enhancement related to expenses, financial aid, faculty responsibilities, and support services for students.

Re-establishing trust in higher education requires a proactive approach to rectify existing inequalities. An equity-centered, data-informed strategy is crucial in crafting initiatives that promote social and economic mobility for all students, irrespective of their backgrounds.

Diane Cheng is the vice president of research and policy at the Institute for Higher Education Policy (IHEP), a nonpartisan research and advocacy organization.

Source
hechingerreport.org